Ghana is facing a "dire liquidity crunch" much more serious than the Finance Minister wants Ghanaians to think, Mr. Andrew Awuni the Executive Director of Centre for Freedom and Accuracy has said.

The Executive Director of the policy think tank says for a key state institution such as the National Development Planning Commission (NDPC) to complain that it is starved of funds is a reflection of a larger financial crisis in the country.

His comments follows revelations by one of its Commissioners, Professor Agyeman Badu Akosa admitted that the NDPC is broke. The NDPC is mandated by the constitution to advise the President on development planning policy and strategy by providing a national development policy framework.

But it has only received first quarter subvention from government this year. Andrew Awuni notes that the situation at the cash strapped state outfit which is chaired by the President's advisor P.V Obeng, mirrors how "dire" the situation is for many other state agencies such as the Ministries and the Department for Social Welfare.

He doubts the version of Ghana's economy as stated by the Minister of Finance Seth Terkper when he confirmed three days ago that the economy is facing challenges. The Minister admitted government cannot fund activities of Ministries, Departments and Agencies because there is not enough money. Government is also facing a "moderate debt distress".

Parliamentarians are also up in arms against the government for non-payment of their statutory District Assembly Common Fund. Some District Chief Executives in the Northern Region are reportedly hiding from creditors and others are running on credit after government failed to release funds. GETFUND is also in need of funds.

According to Awuni, Ghana is facing a "liquidity crunch because for the past nine months, these funds have not hit the accounts of the distressed government institutions.

"Perhaps we are not being told the whole truth", Awuni said. The Executive Director is advising government to cut down on executive expenditure to demonstrate that indeed the country is "down to the bones".