Oppong Nkrumah and Minority Demand Answers on $1.2bn Reserve Decline and Borrowing Ahead of Mid-Year Budget Review

Finance Minister Dr. Cassiel Ato Forson is scheduled to present the 2026 Mid-Year Budget Review to Parliament on Thursday, July 23, amid intense scrutiny from the Minority caucus. Kojo Oppong Nkrumah, Ranking Member of the Economy and Development Committee, has demanded a formal explanation for a $1.2 billion decline in Ghana’s international reserves. The opposition is questioning the government’s management of these funds, particularly as the administration claims it has not intervened in the foreign exchange market. Additionally, Habib Iddrisu, the First Deputy Minority Whip, has warned the government against seeking further funding in this review, citing a backlog of unfulfilled policy commitments from previous allocations.

The Minority has further criticized the Mahama administration’s fiscal strategy, labeling the current growth a "galamsey economy" that is overly dependent on high global gold prices rather than sustainable domestic policy. Oppong Nkrumah argued that the reported 6.4% growth in the first quarter of 2026 is driven by record gold exports, which may leave the economy vulnerable if prices fluctuate. Concerns were also raised regarding the government’s request for nearly $1 billion in new loans just nine weeks after exiting the IMF’s Extended Credit Facility. Minority Leader Alexander Afenyo-Markin highlighted this as a contradiction to the National Democratic Congress (NDC)’s prior stance against heavy external borrowing, raising alarms about long-term debt sustainability.

Controversy also surrounds the government’s flagship "24-Hour Economy" initiative. The NPP Policy Co-ordination Committee has dismissed recent job creation claims as "audio announcements," asserting that only 160,000 jobs have been linked to newly signed MoUs rather than operational projects. Oppong Nkrumah pointed to discrepancies in the agriculture sector, where actual disbursements reportedly fell significantly short of announced funding. Furthermore, commercial drivers and cocoa farmers have added to the pressure, with the former seeking tax relief on fuel and spare parts to combat rising operational costs, while the latter demand the fulfillment of promised price payments.

Defending the government’s performance, the Majority, led by Sagnarigu MP Atta Issah, maintains that the country’s economic indicators are supported by the IMF and reflect prudent fiscal management. Issah refuted claims that the fiscal surplus was achieved solely through expenditure cuts, arguing instead that strategic adjustments were made to safeguard essential public services. The upcoming budget review is expected to focus on infrastructure development under the "Big Push" program, flood mitigation, and the operationalization of the Women’s Development Bank without the introduction of new taxes. Following the presentation on Thursday, Parliament will begin a debate on the review on Friday, July 24, with a conclusion expected by July 27.