[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109208-en":3,"doc-seo-109208-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109208,34359740700684,"Finn","https://ap-avatar.wpscdn.com/avatar/1f400023980c374ae676?_k=1777273430885731487",8,"Research & Report","Ghana Public Finance Review - Building the Foundations for a Resilient and Equitable Fiscal Policy - Foundations for Efficient Public Spending","Public spending in Ghana grew rapidly and remained volatile from 2010 to 2021, reaching record levels and consistently outpacing economic growth, with interest payments and pandemic-related and pre-election measures pushing expenditures to about 25.1% of GDP in 2020. Limited, sometimes misdirected capital spending and oscillation between pro-cyclical and countercyclical policies weaken fiscal stabilization needs. A key constraint is budget rigidity: about 75% of spending is mandatory or highly rigid, restricting timely adjustments and reducing the efficiency and responsiveness of fiscal policy.","Reviewing Public Expenditure Trends and Overall Efficiency  \nPublic Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized  \nG Review   Foundations forhana Pub lic Finance Building the a Resilient and Equitable Fiscal Policy  \n3/  \nGhana Public Finance Review | Volume 2 / Detailed Analysis  74  \n3.1/ Public spending has been fast-growing, volatile, and burdened by interest paymentson debt  \nBetween 2010 and 2021, and before the fiscal consolidation following the 2022 economic crisis, government spending in Ghana almost doubled, reaching record levels and outpacing economic growth. In 2020, necessaryyet-costly pandemic containment and economic support measures, coupled with pre-election spending, pushed expenditures to a historic high of 25.1 percent of gross domestic product (GDP)—almost 5 percentage points above the average of the previous five years. Since 2010, public expenditure in Ghana has been volatile and inadequately targeted, with limited capital spending on critical infrastructure, and varying degrees of fiscal restraint as the government fluctuated between pro-cyclical and countercyclical policies ( Figure 3.1 and Figure 3.2) .45 In a context of growing needs, limited resources, and the required fiscal consolidation to stabilize the economy post crises, enhancing the efficiency of fiscal spending is more critical than ever.  \n45 Notably, public expenditures grew by about 40 percent year-on-year in 2012, driven by a surge in recurrent spending due to higher interest costs, energy subsidies, and substantial growth in the wage bill. Moreover, expenditure levels in 2020 were also the highest since 2012, underscoring the unprecedented challenges faced during that period.  \n3/ Reviewing Public Expenditure Trends and Overall Efficiency  75  \n\n| Expenditures have grown faster than GDP and the fiscal stance has leaned pro-cyclical |  |\n| --- | --- |\n| Figure 3.1. GDP growth vs. expenditure growth (2000–2023) |  Figure 3.2. Cyclicality of fiscal policy (2000–2021) |\n\nSource: World Economic Outlook (WEO), Macro Poverty Outlook (MPO) World Bank calculations. Latest available data.  \nNote: CAPB = Cyclically Adjusted Primary Balance.  \nGhana’s budget is more rigid than those of selected peers, hindering the agility and responsiveness of fiscal policy.  \nExpenditures are considered rigid when legal, contractual, or institutional constraints hamper short-term adjustments. In Ghana, about 75 percent of public expenditure can be classified as mandatory or highly rigid;46 the relevant categories include public sector wages, interest payments, pensions, and externally financed capital expenditure. Spending categories of medium rigidity—which include subsidies, grants, and social benefits—account for another 5 percent of total expenditure. Overall, budget rigidity in Ghana is higher than the averages of the country’s structural and aspirational peers, as well of other lower-middle-income countries (LMICs) .  \nCredits: Wor ld Bank  \nGhana Public Finance Review | Volume 2 / Detailed Analysis  76  \n\n| Ghana’s budget is more rigid than those of its aspirational and structural peers |  |  |\n| --- | --- | --- |\n| Figure 3.3. Evolution of budget rigidity in Ghana |  | Figure 3.4. Ghana’s budget rigidity vs. comparators\u003Cbr>\u003Cbr>80%\u003Cbr>70%\u003Cbr>60%\u003Cbr>50%\u003Cbr>40%\u003Cbr>30%\u003Cbr>20%\u003Cbr>10%\u003Cbr>0%\u003Cbr>Ghana\u003Cbr>Structural Aspirational\u003Cbr>peers peers\u003Cbr>2009-2014 2015-2019\u003Cbr>LMIC\u003Cbr>2020\u003Cbr>SSA |\n| 100%\u003Cbr>90%\u003Cbr>80%\u003Cbr>70%\u003Cbr>60%\u003Cbr>50%\u003Cbr>40%\u003Cbr>30%\u003Cbr>20%\u003Cbr>10%\u003Cbr>0% |  |  |\n| 2016 2017 2018 2019 2020 2021\u003Cbr> High  Medium  Low |  |  |\n| Source: BOOST, WEO, World Bank calculations. Latest available data.\u003Cbr>Note: World Bank Group classification of expenditures by rigidity: Low rigidity (spending on goods, services, and capital), Medium rigidity (subsidies; goods, services, and capital spending for education and health), High rigidity (public sector wages, interest on debt, social protection excluding ","cbCaivJ5hTx3SUB8","https://ap.wps.com/l/cbCaivJ5hTx3SUB8","pdf",690463,2,1,32,"English","en",105,"# Reviewing Public Expenditure Trends and Overall Efficiency\n## Public spending growth, volatility, and fiscal context\n## Budget rigidity and its implications for policy flexibility\n## BOOST Budget Analysis Tool and data coverage","[{\"question\":\"How did Ghana’s government spending change between 2010 and 2021?\",\"answer\":\"Government spending almost doubled between 2010 and 2021 and, in 2020, reached a historic high of about 25.1% of GDP due to pandemic containment and support measures and pre-election spending.\"},{\"question\":\"Why is enhancing spending efficiency critical in Ghana’s fiscal context?\",\"answer\":\"Growing needs and limited resources require fiscal consolidation after crises, so improving how public funds are used is more important than ever.\"},{\"question\":\"What does budget rigidity mean in Ghana and how much spending is rigid?\",\"answer\":\"Budget rigidity refers to legal, contractual, or institutional constraints that limit short-term adjustments. In Ghana, about 75% of public expenditure is classified as mandatory or highly rigid, including wages, interest, pensions, and externally financed capital expenditure.\"}]","Ghana Public Finance Review - Building the Foundations for a Resilient and Equitable Fiscal Policy - Foundations for Efficient Public Spending | PDF",1784477837,81,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":29},"ghana-public-finance-review-building-the-foundations-for-a-resilient-and-equitable-fiscal-policy-foundations-for-efficient-public-spending","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,48,51],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":20},"https://docshare.wps.com/document/","Document",{"item":49,"name":12,"@type":44,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":44,"position":53},"https://docshare.wps.com/document/ghana-public-finance-review-building-the-foundations-for-a-resilient-and-equitable-fiscal-policy-foundations-for-efficient-public-spending/109208/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-29","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"How did Ghana’s government spending change between 2010 and 2021?","Question",{"text":76,"@type":77},"Government spending almost doubled between 2010 and 2021 and, in 2020, reached a historic high of about 25.1% of GDP due to pandemic containment and support measures and pre-election spending.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"Why is enhancing spending efficiency critical in Ghana’s fiscal context?",{"text":81,"@type":77},"Growing needs and limited resources require fiscal consolidation after crises, so improving how public funds are used is more important than ever.",{"name":83,"@type":74,"acceptedAnswer":84},"What does budget rigidity mean in Ghana and how much spending is rigid?",{"text":85,"@type":77},"Budget rigidity refers to legal, contractual, or institutional constraints that limit short-term adjustments. In Ghana, about 75% of public expenditure is classified as mandatory or highly rigid, including wages, interest, pensions, and externally financed capital expenditure.","https://schema.org",{"og:url":52,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":52},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":47,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":107,"slug":139},19,"General","general"]