Emmanuel Adekahlor, Country Managing Partner of EY Ghana, has emphasised that the effective implementation of expenditure controls, value-for-money initiatives, and commitment management will determine whether the 2026 Budget delivers its intended economic outcomes.
Speaking on the budget’s prospects, Mr. Adekahlor said Ghana must sustain the fiscal discipline achieved under the IMF programme, even after its exit, to ensure macroeconomic stability. He noted that some tax reforms, including reductions in the effective Value Added Tax rate, could temporarily reduce revenue but are aimed at simplifying compliance, enhancing efficiency, and expanding the tax base over time.
“Successful execution of these revenue-enhancing measures, including anti-leakage strategies at the ports, is crucial to financing government programmes without destabilising the economy,” he stressed.
Building Buffers and Driving Structural Change
Adekahlor also highlighted the importance of using current favourable conditions—such as strong gold and cocoa prices—to build fiscal and foreign exchange buffers against future external shocks.
However, he cautioned that medium- to long-term growth depends on structural transformation, urging Ghana to diversify beyond traditional sectors to reduce vulnerability to global disruptions and promote sustainable, inclusive development.
Ensuring Value for Money in Public Spending
On public expenditure, Mr. Adekahlor stressed that all government ministries and agencies must implement robust VfM processes to reduce waste, ensure procurement compliance, and optimise returns on every cedi spent. He encouraged thorough evaluation of projects and social intervention programmes to ensure efficiency, effectiveness, and sustainability.
He also lauded the government’s initiatives, such as validating arrears and conducting payroll audits to eliminate ghost names, noting these steps are vital for strengthening fiscal accountability.
“The Value for Money Office (VfMO) could be a transformative tool if properly structured and implemented, rather than adding bureaucracy to the public financial management system,” he said.
Economic Outlook
Ghana’s economy is projected to grow by 4.9% in 2026, with GDP expected to reach GH¢1.5 trillion. The services, industry, and agriculture sectors are forecast to contribute 47%, 31%, and 22% respectively. Inflation is expected to remain within the medium-term target of 8% ±2, while the fiscal deficit is projected to narrow to 4.0%.
“These indicators reflect cautious optimism, grounded in fiscal discipline, targeted reforms, and improving investor confidence,” Mr. Adekahlor said, adding that EY remains ready to support businesses, government, and communities in navigating the evolving economic landscape.
