The Institute for Fiscal Studies (IFS) has urged government to improve the implementation of the 2026 budget in the second half of the year to ensure that spending remains in line with parliamentary approval.

The call follows an assessment by the IFS which shows that government spent GH¢35.6 billion less than the amount it had planned for the first six months of 2026.

Government had projected expenditure of GH¢172.54 billion for the period, but actual spending fell significantly below the target.

Speaking at a briefing on the 2026 Mid-Year Budget Review, Acting Executive Director of the IFS, Dr Said Boakye, said the shortfall raised concerns about the effectiveness and credibility of the budget.

He noted that while lower expenditure could have fiscal benefits, the scale of the underspending had implications for economic growth and development.

Dr Boakye therefore called on government to execute approved spending plans fully, unless there are significant changes in revenue performance or financing conditions.

He also raised concerns about government’s financing approach during the first half of the year, particularly the accumulation of funds in the second fund, which he said was not provided for in the approved financing plan.

According to him, the decision disrupted the availability of resources for critical areas of expenditure, including capital projects and other government obligations.

The IFS is consequently calling for greater consistency between government’s financing decisions and the approved budget to improve expenditure implementation and ensure that resources are directed towards priority development programmes in the second half of 2026.