Tain MP defends Mid-Year Budget, says commitment authorization law is curbing reckless spending

Member of Parliament for Tain, Hon. Adama Sulemana, has defended the 2026 Mid-Year Budget Review, saying government has introduced measures to control reckless expenditure and build fiscal buffers after the economic challenges of 2022.

Contributing to the debate in Parliament, Hon. Sulemana recalled that in 2022 interest rates surged and international credit agencies downgraded Ghana. He attributed those problems to what he described as reckless expenditure and binge borrowing.

*"These choices are as a result of reckless expenditure, binge borrowing. Mister speaker choices about accountability,"* he said.

The Tain MP said the Finance Minister responded by introducing the Commitment Authorization Bill, which requires sector ministers to have direct control over expenditures in their ministries before authorization gets to the Finance Ministry.

Citing the Public Accounts Committee report for 2024, he noted that ECG had exceeded its budget on all 13 items, and argued the new law was needed to address such issues.

*"So today if you see that expenditure has been controlled it is not magic. It is because of this singular bill that was passed into act by this house called commitment authorization,"* Hon. Sulemana stated.

He added that the budget also makes provisions ahead of expenditure. According to him, after funds in the sinking fund were dissipated following COVID-19, the current Finance Minister and President Mahama are rebuilding it.

*"After July 2022, after July 2026, 15.6 billion has been accrued into this sinking fund. In anticipation that by the end of the year 2026, 30 billion will be accrued so that the debt that will be due in 2026 will be paid,"* he said.

Hon. Sulemana said the approach shows government is planning ahead to avoid default and further downgrades.

*"We will not wait until we are declared bankrupt. We will not wait until we cannot pay for our debts. We will not wait until Fitch, Moody and other rating agencies downgrade this economy,"* he added.

He further stated that while critics claim the Finance Minister was not spending, the Mid-Year Review demonstrates that government is spending in the right places.