The Institute for Fiscal Studies (IFS) has criticized Ghana's Minister of Finance, Dr. Cassiel Ato Forson, for failing to increase revenue from the small-scale mining sector. This criticism emerged from the IFS's analysis of the 2026 Mid-Year Budget review. The policy think tank stated that the Finance Minister did not capture expected revenue from this vital sector.
The IFS highlighted that gold exports from small-scale mining have increased significantly over the years. However, government revenue from this sector remains low. This discrepancy means Ghana is missing out on crucial funds for national development. The Bank of Ghana's data confirms these rising export figures.
This situation fits into Ghana's broader economic challenge of mobilizing domestic revenue. The government often faces budget shortfalls and needs to fund key infrastructure projects. Maximizing revenue from natural resources like gold is essential for economic stability and growth. The small-scale mining sector is a major contributor to Ghana's gold output.
Dr. Said Boakye, Executive Director of the IFS, expressed strong disapproval. He stated, "It is appalling to note that the Mid-Year budget review fails to articulate government strategy on how to increase revenue from the small scale mining sector." Dr. Boakye emphasized the sector's critical importance and its potential for the Ghanaian economy. He also noted that Bank of Ghana reports indicate small-scale mining generates more gold than large-scale operations.
The failure to capture more revenue from small-scale mining has significant implications for Ghana's budget and development plans. Dr. Boakye argued that these funds could cover budget shortfalls, especially with value addition to raw materials. He recommended that the government target expenditure towards key infrastructure investments to facilitate economic growth. The IFS believes this strategic approach is vital for national progress.
Government expenditure has been low in key sectors, according to the IFS. This underspending is directly linked to lower-than-expected revenue inflows. Such a situation can negatively affect overall budget planning and the implementation of government policies. The IFS stressed the importance of fully implementing approved expenditures to maintain budget credibility and support growth.
For the first half of 2026, the government targeted an expenditure of GHS 172.54 billion. However, actual spending was significantly lower than this planned amount. This considerable underspending undermines the budget's credibility. More importantly, it hinders the country's growth and development efforts. The IFS urges the government to ensure that approved expenditures are fully carried out.
The small-scale mining sector's potential to contribute to the national treasury is immense. Improving revenue collection mechanisms in this area could provide a stable funding source. This would help finance critical social services and infrastructure projects across Ghana. The government must develop clear strategies to tap into this wealth effectively.
The IFS's critique serves as a call to action for the Ministry of Finance. It highlights the need for robust policies that ensure fair and efficient revenue collection from all economic sectors. Addressing this issue will be crucial for Ghana's fiscal health and its ability to achieve its development objectives. Future budget reviews will likely scrutinize progress in this area closely.