Fiscal Adjustment and Domestic Demand: The Importance of Spending Composition

Investigates how the composition and execution of Ghana’s fiscal adjustment shape household consumption, enterprise receipts, investment and public-service capacity. Official spending comparisons and published programme evidence are combined with conditional demand and cash-flow scenarios to explain why wages, procurement, transfers and capital spending require distinct analysis.

137 pages · 3.19 MB · English

About this report

Author: Dr. Felix Larry Essilfie
Publisher: Institute of Development and Economic Research (IDER)
Publication date: September 2026
Evidence cut-off: 2026-09-26
Reference period: Annual fiscal vintage: July 2026 IMF report. Execution: H1 2025; studies retain their own dates. Cover: fiscal evidence 2024–2026, dated by status; conditional demand 2026.
Series: IDER’s Ghana Macroeconomic Policy and Business Intelligence Briefings

What the report covers

Annual spending composition, price-adjusted changes and H1 2025 budget execution.
Published empirical evidence and the different transmission channels of wages, procurement, household transfers and capital.
Conditional spending portfolios, investment and service bundles, and enterprise sales and cash scenarios.

Read the evidence in context

No original Ghana-wide causal effect is claimed. First-round domestic seller receipts are not GDP multipliers, scenario ranges are not confidence intervals, and conditional portfolio comparisons do not establish an unconditional spending-cut ranking.

The report’s original source definitions, assumptions and limitations govern its interpretation. References to other institutions do not imply their endorsement.

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