SUMMARY OF GHANA’S ECONOMIC POLICY
The economic outcomes for the 2025 fiscal year were positive, characterised by the recovery of single-digit inflation, significant economic growth, and the outperformance of key macroeconomic targets.
The 2026 budget and medium-term strategy set out objectives to stabilise these economic gains, accelerate growth and job creation, and sustain key interventions to “unleash opportunities across all sixteen (16) regions” through the Big Push, Farmer Services, and the 24-Hour Economy.
The Minister announced structural reforms such as setting up an independent Value for Money Office; revise the strategies for the Ghana Petroleum Fund to invest in domestic energy generation; and implement improved revenue mobilization reforms.
The Global Futures Institute commends the government for prioritising continuation of ten (10) of the ongoing Agenda 111 hospital projects, which is essential for public health and disease preparedness. This demonstrates good governance and a vital step in rebuilding public confidence, given that projects are often neglected after transfers of power.
The government’s commitment to funding social protection programs to support vulnerable groups; 14.9% increase in education spending; and GH¢20 million allocation to the Creative Arts Fund is remarkable.
The 2026 Budget Statement and Economic policy seeks to protect the gains made in the previous year; however, it is not clear on strategies and ambition to expand Ghana’s economy.
Revenue Reforms and Projections.
The establishment of an independent Fiscal Council to tighten financial discipline is a positive step. The Finance Minister acknowledged that “there is no shortcut around responsible management and fiscal discipline.” However, will its functions be significantly different from the Public Financial Management Act (PFMA)?
Many have also questioned why without the existence of Value for Money Office, the budget deficit for 2025 was 2.3% of GDP; yet, fiscal deficit is projected to reduce marginally to 2.2% of GDP after passing the bill this year?
Ghana’s large informal economy, and ineffective enforcement of financial laws pose structural challenges to revenue mobilisation. Regardless of these challenges, revenue mobilisation recorded 22.8% year-on-year increase, and achieved 67.4% of the annual revenue target.
The government was bold to abolished the COVID Levy and reduced effective VAT rate to 20%, even though revenue target fell short by GH¢7.7 billion in the previous year. This could lead to stagnation because the medium-term revenue strategy is not clear on how it will improve the informal market that forms about 65% of the economy.
