By Albert Neenyi Ayirebi-Acquah, FCCA
Public finances are tight. Every cedi counts. But how do we know if we’re allocating our limited fiscal resources to the sectors that deliver the most value?
That question inspired a simple yet powerful framework: map each sector by how much it contributes to GDP vs. how much government spends on it.
The result? A quadrant chart that helps spotlight:
Which sectors are high-output engines needing more fuel
Where we may be overspending without enough economic return
And what sectors, despite lower returns, remain strategic bets for long-term transformation
Key Takeaways from the 2024 Snapshot
1. Mining & Manufacturing: Deliver strong GDP with minimal public spend. Mostly private-led, they show where market forces work efficiently.
2. Transport & Construction: High spend, but rightly so. These are economic enablers with multiplier effects on jobs and productivity.
3. Health & Education: Lower GDP contribution but vital for human capital. Their value isn’t always captured in output metrics — and that’s okay.
4. Electricity: Strategic, yet underperforming. This flags the need for deeper reforms and smarter investments.
What This Framework Gets Right
It highlights efficiency mismatches — where we’re under-investing in growth enablers or overfunding sectors with limited short-term returns.
But it’s more than just a cost-benefit tool. It’s a lens to guide policy conversations, raise the right questions, and ensure our national budget works harder for Ghana.
And What It Misses
No framework is perfect. This one doesn’t account for:
Long-term payoffs (e.g., education’s impact on future productivity)
Job creation
Social value or equity considerations
Systemic spillovers (like power to the whole economy)
Final Thought
Let’s not confuse precision with insight. This isn’t about cutting spending. It’s about aligning it better — to growth, to jobs, to impact.
Smart spending isn’t about how much — but how well.
Albert Neenyi Ayirebi-Acquah, FCCA
