As part of its expenditure reprioritization, some infrastructure or capital projects have become the casualties as government seeks new funding for the Ghana Gold Board (GoldBod).
This underscores the difficult trade-offs of national economic management. Capital Expenditure (CAPEX) has become the sacrificial lamb as government seeks to build a massive financial reserve and to finance the operations of GoldBod.
According to the 2026 Mid-Year Fiscal Policy Review, a total of GH¢5.0 billion has been diverted from CAPEX to provide new financing for the Ghana Gold Board (GoldBod).
The Casualty: Infrastructure on Hold
For many development analysts and economists, capital expenditure is traditionally the engine of a nation’s growth, funding the roads, schools, and hospitals that drive productivity. However, in the revised 2026 budget, CAPEX has become the primary casualty of what the finance minister describes as “strategic realignment.”
The original budget for CAPEX has been slashed from GH¢57.5 billion to GH¢52.5 billion. As part of the realignment, Dr. Cassiel Ato Forson announced that foreign-financed CAPEX was reduced by GH¢3.0 billion, following a downward revision of bilateral loan disbursements.
On the other hand, domestically-financed CAPEX, specifically the flagship “GoG Big Push Capex,” suffered a GH¢2.0 billion cut, dropping from GH¢15.3 billion to GH¢13.3 billion.
The New Priority
The GH¢5 billion saved from these infrastructure cuts has been reallocated to fund the Ghana Accelerated National Reserve Accumulation Policy (GANRAP) managed by GoldBod. This policy is a cornerstone of the government’s plan to build an “economic war-chest”, aiming for 15 months of import cover by 2028 to safeguard the cedi and absorb global shocks.
This shift in funding is not just a choice of preference but a necessity born of a changing financial landscape. For the past years, such activities were supported by the Bank of Ghana (BoG). However, prior to the review, the Governor of the Central Bank, Dr. Johnson Asiama, announced the withdrawal of the BoG financing for GoldBod.
This transition follows significant losses on the BoG’s balance sheet, due to the domestic gold purchasing program. With the BoG retreating to its core mandate of price stability and ending quasi-fiscal operations, the Ministry of Finance has had to step in as the new financier for GoldBod.
Replenishing the Well: A Calculated Risk?
While the sight of delayed road projects or postponed school buildings may worry citizens, the government is betting that this sacrifice will pay for itself.
It is believed that by using GoldBod to formalize the gold trade and boost reserves, the country can generate massive foreign exchange inflows. In 2025 alone, gold interventions generated US$15 billion in foreign exchange, a move that helped the cedi become the world’s strongest-performing currency that year.
The government’s hope, and the “benefit of the doubt” many economists are extending, is that the stability and income generated by a gold-backed economy will eventually replenish the very CAPEX accounts being raided today.
The Bottomline
For now, some infrastructure projects may come to a standstill. However, the country’s gold business will boom. As Finance Minister Dr. Cassiel Ato Forson noted, these adjustments reflect prudent expenditure management and a shift toward strategic interventions.
Whether the Ghanaians will see the trade-off as a fair one will likely depend on how quickly the stability of the “wellness centre” translates back into the physical infrastructure of their daily lives.
