Ghana’s 2026 Budget: Navigating the Path to Economic Stability and Growth
The future of Ghana’s economy is at stake, and the decisions made in the upcoming budget will shape its trajectory. Emmanuel Adekahlor, a prominent EY Partner, has shed light on the critical factors that could make or break the country’s financial prospects.
Adekahlor emphasizes that strict financial discipline is the cornerstone of Ghana’s economic success. He argues that maintaining the fiscal control achieved under the IMF program is vital for long-term stability, even after Ghana’s exit. This means keeping a tight grip on spending and ensuring every cedi is spent wisely.
But here’s where it gets controversial: tax reforms. Adekahlor acknowledges that reducing the VAT rate might cause a temporary dip in revenue. However, he believes these reforms are necessary to simplify tax compliance, attract more taxpayers, and ultimately boost revenue in the long run. It’s a delicate balance between short-term losses and long-term gains.
External factors also play a significant role. Ghana’s economy, Adekahlor warns, is susceptible to global shocks. He encourages the government to take advantage of the current favorable conditions, especially in the gold and cocoa markets, to build financial and foreign exchange reserves as a safety net for the future.
Looking ahead, Adekahlor advocates for a shift in focus. He suggests that diversifying the economy beyond traditional sectors is crucial to reducing vulnerability to global disruptions. This strategic move could foster sustainable and inclusive growth, ensuring Ghana’s economic resilience.
The 2026 Budget, according to Adekahlor, introduces initiatives that demand substantial government investment. He urges the Ministry of Finance to implement stringent expenditure controls and value-for-money processes to ensure every cedi is well-spent. This includes thorough project evaluations and carefully designed social programs to avoid waste and ensure long-term benefits.
The establishment of the Value for Money Office is a welcome step, but Adekahlor emphasizes the need for effective implementation to avoid bureaucratic inefficiencies. He praises ongoing efforts to validate expenditure arrears and conduct payroll audits, which are essential for fiscal accountability.
Ghana’s economy is projected to expand by 4.9% in 2026, with a GDP of GH¢1.5 trillion. Services, industry, and agriculture will be the key drivers. Inflation is expected to remain stable, and the fiscal deficit is forecast to improve. These indicators, Adekahlor suggests, are a result of the country’s fiscal discipline, policy reforms, and growing investor confidence.
EY’s commitment to supporting Ghana’s journey is evident. Adekahlor highlights their multidisciplinary approach, offering expertise in tax, strategy, risk management, consulting, digital transformation, and sustainability. They aim to guide businesses, the government, and communities through this complex economic landscape.
In a separate development, the French Embassy expressed its continued support for Ghana’s creative and cultural sectors, recognizing their importance in the country’s development.
What are your thoughts on Ghana’s economic strategies? Do you agree with Adekahlor’s emphasis on fiscal discipline and tax reforms? Could these measures be the key to Ghana’s economic resilience, or are there alternative approaches worth considering?