The Integrated Social Development Centre (ISODEC) has welcomed key tax relief measures announced in the government’s 2026 Mid-Year Fiscal Policy Review but has expressed serious concerns over what it describes as persistent fiscal opacity and continued dependence on the International Monetary Fund (IMF).
In a statement issued on Tuesday, August 4,2026, ISODEC applauded the government’s decision to abolish the Electronic Transfer Levy (E-Levy), Betting Tax, COVID-19 Health Recovery Levy and Emissions Levy, describing the move as a major victory for Ghanaian citizens and a validation of organisation’s long-standing campaign against what it called regressive taxation.
ISODEC noted that the government’s own economic data point to improving macroeconomic conditions, including a 6.4 percent real Gross Domestic Product (GDP) growth in the first quarter of 2026 and a reduction in the country’s debt-to-GDP ratio to about 45 percent.
According to the organisation, the government’s admission that abolishing the E-Levy “did not weaken revenue; it strengthened it” supports its long-held position that broad-based consumption taxes impose unnecessary burdens on citizens without generating the expected fiscal returns.
Despite these gains, ISODEC argued that the Mid-Year Review failed to address critical issues relating to fiscal transparency and Ghana’s economic independence.
The organisation expressed particular concern over the government’s GH¢30 billion “Big Push” Infrastructure Programme, describing it as lacking transparency. It observed that only GH¢6.5 billion, representing about 22 percent of the annual allocation, had been disbursed by the halfway point of the year, yet no detailed information had been provided on individual projects, contracts or implementation schedules.
ISODEC said repeated calls by civil society organisations, including BudgIT Ghana, for the publication of project locations, procurement details and implementation plans had gone unanswered. It warned that the absence of such information raises the risk of inefficient spending, resource leakages and public mistrust.
The organisation also criticised the government’s plan to transition from the IMF Extended Credit Facility to a new Policy Coordination Instrument (PCI) without parliamentary scrutiny.
According to ISODEC, although the proposed PCI does not provide financing, it still subjects Ghana to IMF policy conditions that could limit the country’s fiscal independence. It argued that entering into such an arrangement without legislative oversight would perpetuate Ghana’s long-standing dependence on external institutions in shaping domestic economic policy.
The organisation therefore called for an independent parliamentary review of the proposed PCI before any agreement is finalised.
ISODEC further expressed disappointment that the government had overlooked several of its proposed policy alternatives, including the adoption of a Functional Finance framework that prioritises economic outcomes over deficit targets and the establishment of a National Job Guarantee Programme to provide employment as a public responsibility.
The think tank also criticised the government’s continued reliance on IMF and Eurobond financing, saying it had failed to consider alternative African financing mechanisms such as the Pan-African Payment and Settlement System (PAPSS) under the African Continental Free Trade Area and financing opportunities through the African Export-Import Bank.
While acknowledging improvements in customs administration and Value Added Tax (VAT) enforcement, ISODEC urged the government to introduce a comprehensive and adequately funded strategy to combat illicit financial flows, particularly within Ghana’s extractive industries.
As part of its recommendations, the organisation called on the government to immediately publish a comprehensive list of all projects under the Big Push Infrastructure Programme, including contract awards, project locations and implementation timelines. It also urged Parliament to hold public hearings on the proposed IMF Policy Coordination Instrument before its approval.
“The 2026 Mid-Year Review shows Ghana has stabilised its economy, but the reset remains incomplete,” ISODEC said, adding that the country requires stronger domestic fiscal capacity and greater accountability rather than another IMF programme to manage its economic affairs.
Source: ISODEC Communications
