The Minority in Parliament has questioned the government’s fiscal performance, arguing that a revenue shortfall in the first half of 2025 and reduced capital expenditure point to slowing economic activity rather than improved fiscal management.

Speaking during debate on the floor of Parliament, former Deputy Finance Minister and Member of Parliament for Atiwa East, Abena Osei Asare, said government missed key domestic revenue targets despite introducing new tax measures.

According to her, government projected to raise GH₵128 billion in domestic tax revenue during the first half of 2025 but recorded a shortfall of nearly GH₵2 billion.

Ms Osei Asare attributed the underperformance largely to lower-than-expected collections from domestic goods and services taxes which she said fell short of target by GH₵6.8 billion.

She explained that Value Added Tax (VAT) receipts alone declined by GH₵2.3 billion while excise duty collections also fell, describing the figures as evidence of weakening economic activity.

“The numbers tell a story that people are not buying and businesses are not flourishing,” she told the House, adding that the country’s economic performance should be measured by actual business activity rather than public pronouncements.

The Atiwa East MP further argued that despite the introduction of eight new taxes in 2025, government still recorded an overall revenue shortfall of about GH₵5 billion which, she stressed, raises concerns about the effectiveness of its revenue mobilisation strategy.

On expenditure, Hon. Osei Asare maintained that government was reducing spending to contain the fiscal deficit instead of stimulating economic growth through investment.

She noted that total expenditure had declined significantly in the first half of 2025 with capital expenditure alone falling by GH₵14.3 billion.

According to her, the reduction in capital spending is delaying critical infrastructure projects across the country including road projects in her constituency.

“Government is therefore not balancing the books. They are just balancing the books by not spending,” she stated, arguing that cuts in development spending directly affect the completion of essential public infrastructure.

The Minority says the latest fiscal figures suggest the economy is not generating the level of commercial activity needed to sustain revenue growth and has called on government to prioritise productive investment while strengthening measures to stimulate business activity.