As Ghanaians await the 2025 Mid-Year Budget Review, economist Courage Boti is urging government to maintain a firm grip on expenditure to safeguard recent economic stability.
In an exclusive interview with The High Street Journal on the Mid-Year Review, Courage Boti acknowledged that while significant progress has been made in stabilising the economy, the second half of the year poses real fiscal risks that must be managed carefully.
According to him, one of the key red flags is the potential uptick in government spending following the completion of the much-anticipated road contract audit. This, he believes, could unlock a wave of contractor payments and new commitments that may pile pressure on the budget.
For him, the government has had a good start in stabilising the macroeconomy. Exchange rate has calmed, inflation is slowing, and interest rates are showing some downward signals.
However, the real test is how the government manages its spending in the second half of the year so that the recovery is not jeopardised and the economy thrown off gear.
He emphasised that while infrastructure investments are important, unrestrained expenditure in a fragile recovery period could reverse the hard-won gains achieved under the IMF programme.
The economist’s call aligns with growing calls from other analysts and economists for a disciplined fiscal approach, especially in a context where revenue inflows remain uncertain and external borrowing options are limited.
The government is expected to present the Mid-Year Budget Review to Parliament on Thursday, July 24, 2025. Expectations are high that the review will provide updates on revenue performance, highlight spending trends, and lay out a revised strategy for achieving fiscal targets under the ongoing IMF-backed economic reform programme.
For economists like Courage Boti, this is a critical moment to consolidate stability, not a time to open the fiscal taps.
