The International Monetary Fund (IMF) has disclosed that the Ghanaian government has cancelled about 1,800 public investment projects following a comprehensive review of the country’s public investment portfolio.
The review, according to the Fund, forms part of broader efforts by government to improve public spending efficiency, strengthen fiscal discipline and ensure that limited state resources are directed towards projects with greater economic and social value.
The IMF says the exercise also resulted in the rephasing or rescoping of about 2,000 other projects, allowing them to be better aligned with available financing and the government’s capacity to implement them.
In its latest Article IV Consultation and proposed Policy Coordination Instrument report, the Fund said the review was undertaken to remove projects considered unfeasible, low-priority or no longer consistent with government’s development priorities.
“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 stated.
The Fund said the rationalisation of the project pipeline is expected to improve the quality and efficiency of public investment while helping government manage its limited fiscal space.
It explained that the exercise is intended to ensure that resources are channelled towards projects that can deliver stronger economic and social benefits rather than spreading government funding thinly across a large number of projects.
“The review is aimed at improving the efficiency of public investment and aligning the project pipeline with available fiscal resources and implementation capacity,” the IMF added.
The project review forms part of wider reforms being implemented under Ghana’s economic programme as the country continues efforts to restore fiscal sustainability following its debt restructuring programme.
The IMF said government is also working to strengthen procurement processes, commitment controls and oversight of public spending to improve budget execution and prevent the accumulation of new arrears.
The Fund believes these measures will help government make better use of capital expenditure while creating fiscal space for priority infrastructure and development initiatives.
The reforms are also expected to strengthen public financial management and support Ghana’s long-term debt sustainability by ensuring that new investments are carefully assessed before resources are committed.
The IMF’s disclosure comes at a time when government is under pressure to improve expenditure management and demonstrate greater value for money in the use of public funds.
