The International Monetary Fund (IMF) has disclosed that the government of Ghana has cancelled nearly 1,800 public investment projects following a nationwide review aimed at improving public spending efficiency and strengthening fiscal discipline.
Ghana tourism promotion
According to the Fund, the exercise forms part of broader public financial management reforms under Ghana’s economic programme and is intended to remove low-priority and non-performing projects while redirecting limited resources towards more viable investments.
In its latest Article IV Consultation and proposed Policy Coordination Instrument (PCI) report, the IMF said the government conducted a comprehensive review of the country’s public investment portfolio, resulting in the cancellation of about 1,800 projects that were considered unfeasible or no longer aligned with government priorities.
The review also led to the rephasing or rescoping of about 2,000 other projects to better align them with available financing and the government’s implementation capacity.
“The authorities have undertaken a comprehensive review of the public investment portfolio, resulting in the cancellation of about 1,800 projects and the rephasing or rescoping of around 2,000 others,” the IMF said.
The Fund said the rationalisation exercise is expected to improve the quality of public investments and ensure that scarce public resources are channelled into projects with stronger economic and social benefits.
“The review is aimed at improving the efficiency of public investment and aligning the project pipeline with available fiscal resources and implementation capacity,” the report added.
The project review forms part of wider reforms to strengthen public investment management and
expenditure controls as Ghana works to restore fiscal sustainability following its debt restructuring programme.
The IMF said the government is also implementing measures to improve procurement processes, strengthen commitment controls and enhance oversight of public spending to prevent the accumulation of arrears and improve budget execution.
According to the Fund, the reforms are expected to support more efficient capital expenditure while creating fiscal space for priority infrastructure and development projects under the proposed PCI programme.
The measures also complement broader efforts to improve governance, strengthen public financial management and safeguard long-term debt sustainability.By:William Narh
