The Country Managing Partner of EY, Emmanuel Adekahlor, says the success of the 2026 Budget hinges on effective implementation of expenditure controls, value for money initiatives, and strong commitment control to keep spending within approved limits and achieve stated goals.
According to him, Ghana’s ability to uphold the fiscal discipline achieved under the International Monetary Fund (IMF) programme after its exit is vital for lasting macroeconomic stability.
In his commentary on the 2026 Budget, Mr. Adekahlor said that while certain tax reforms, such as the reduction in the effective Value Added Tax rate, may lead to short-term revenue declines, these measures are designed to simplify compliance, improve efficiency, and ultimately broaden the tax base.
“Enhanced compliance and streamlined processes are expected to drive revenue growth over time. Additionally, the budget introduces complementary strategies, including measures to curb leakages at the ports. Successful execution of these revenue-enhancing initiatives is critical to financing the programmes outlined in the budget without jeopardising overall economic stability”, he explained.
Building Buffers and Driving Structural Transformation
Continuing, Mr. Adekahlor said Ghana’s economy remains susceptible to external shocks.
However, with current favourable conditions, particularly strong performance in gold and cocoa prices on international markets, he stressed that this is an opportune moment to build adequate fiscal and foreign exchange buffers to safeguard against future volatility.
“In the medium to long term, however, the priority must shift towards accelerating structural transformation. Diversifying the economy beyond traditional sectors will be critical to reducing vulnerability to global disruptions and positioning Ghana for sustainable, inclusive growth”, he explained.
Ensuring Value for Money in Public Expenditures
As with previous budgets, the EY boss alluded that the 2026 Budget introduces several initiatives that will require significant government spending.
It is therefore imperative that the Ministry of Finance and all relevant MDAs implement robust expenditure control systems and Value for Money (VfM) processes to minimise waste, enforce compliance with procurement standards, and guarantee optimal returns on every cedi spent.
He added that projects must undergo thorough professional evaluation and assessment before any financial commitments are made, noting that, social intervention programmes should be carefully designed and reviewed to ensure effectiveness and sustainability.
“The establishment of the Value for Money Office (VfMO) has the potential to be a transformative measure—provided it is structured and implemented effectively, rather than becoming an additional layer of bureaucracy within the public financial management system.
He commended Government of Ghana for ongoing initiatives such as validating expenditure arrears and conducting payroll audits to eliminate ghost names, which are critical steps toward achieving VfM and strengthening fiscal accountability”.
Outlook
Ghana’s economy is projected to grow by 4.9% in 2026, with Gross Domestic Product (GDP) expected to reach GH¢1.5 trillion. The services, industry and agriculture sectors will continue to serve as the pillars of growth, contributing 47%, 31% and 22% respectively.
Inflation is also expected to remain anchored within the medium-term target band of 8% ± 2, supported by enhanced food supply and strengthened policy coordination. The fiscal deficit is projected to narrow to 4.0%.
Mr. Adekahlor said these indicators reflect cautious optimism anchored in fiscal discipline, policy reforms, and improving investor sentiment.
“As always, our goal at EY is to empower businesses, government and communities to navigate this evolving landscape with clarity and confidence. Our multidisciplinary teams stand ready to support clients across tax advisory, strategy and transactions, risk and assurance, consulting, digital transformation, and sustainability”, he concluded.
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