In his concluding statement on the 2026 Budget Statement, Minister Ato Forson delivered a powerful defense of the government’s economic policies, asserting that deliberate policy interventions and fiscal discipline have driven the country to outperform its key macroeconomic targets. The Minister countered criticisms by presenting concrete metrics and outlining strategic investments, emphasizing that Ghana is on a credible path toward stability and sustained growth.
Key Metrics: A Profile of Over-performance
Minister Forson detailed several indicators that, according to government data, demonstrate significant economic turnaround and an over-achievement of targets set in the 2025 budget.
The key metrics showing over-performance include:
- Growth (H1): The economy grew by 6.3% in the first half of 2025, comfortably exceeding the revised target of 4%.
- Inflation: Inflation fell to 8% by October 2025 (down from 23.8% in 2024), outperforming the target of 11%.
- Primary Balance: The Primary Balance swung from a deficit of 3% of GDP in 2024 to a surplus of 1.6% of GDP by September 2025, surpassing the target of 1.5% of GDP.
Furthermore, the Minister highlighted:
- Public Debt: Decreased significantly from 61.8% of GDP to 45% of GDP by October 2025.
- Gross Reserves: Strengthened from a 4-month cover to a 4.8-month import cover.
- Industry Resilience: While structural shocks from the Oil and Gas sector caused overall industry growth to slow to 3.4% in the first half of 2025, the SE sub-sector (including beneficiaries of 1D1F) grew by 6.3%.
The Minister stressed that these facts are “recognized by the markets, by the investor community, recognized by rating agencies and international communities including the IMF and the World Bank.”
Strategic Policies and Regulations for Fiscal Health
The administration’s strategy focused on expenditure consolidation rather than a revenue-led approach, aiming to protect citizens from “tax fatigue.”
Regulatory and Fiscal Discipline Initiatives:
- VAT Reforms: The budget has exempted businesses turning over up to 750,000 Ghana cities from the charging and collection of VAT, designed to foster business expansion and create jobs.
- New Incentives: New incentives were created for Textiles, Agribusiness, and Pharmaceutical industries that are export-oriented.
- Value for Money (VFM) Office: The establishment of a dedicated VFM Office is described as a “firewall between taxpayers and inflated contracts.” This office is essential for:
Quotes on Competent Management:
The success in stabilizing the currency and achieving macroeconomic targets was attributed to “competent management and quality management.” The Minister reinforced this with external validation:
“Standards and Poor statement credited Ghana’s upgraded upgrade to improved fiscal discipline, stronger buffers and credible consolidation path…”
On the core fiscal strategy, the Minister stated:
“Stability returned because this government chose a fundamental different path an expenditure consolidation instead of revenue-led consolidation that protected citizens from further tax fatigue.”
Conclusion
The Minister concluded with a firm statement on the government’s approach: realism over “wishful forecasting” and a commitment to fiscal discipline. The results—from outperforming growth and inflation targets to significant debt reduction—are presented as proof of concept.
“In fact this is a profile of a government that is regaining credibility through discipline and that is the record of President Muhammad’s administration.”
The 2026 Budget, according to the government, is not about constraint, but about expanding the economy, securing Ghana’s stability, and ensuring that development is strategic, evidence-based, and fiscally responsible.
