- Emmanuel Adekahlor emphasizes strict expenditure controls and Value for Money initiatives for the 2026 Budget
- Fiscal discipline post-IMF programme is vital for macroeconomic stability
- Tax reforms may cause short-term revenue decline but aim to simplify compliance and broaden the tax base
Emmanuel Adekahlor, Country Managing Partner of EY Ghana, has emphasized that the success of the 2026 Budget will depend on effective expenditure controls, value-for-money initiatives, and strict commitment management to ensure spending stays within approved limits and achieves the government’s objectives.
He noted that maintaining the fiscal discipline achieved under the International Monetary Fund (IMF) programme after its exit is essential for long-term macroeconomic stability.
Commenting on the 2026 Budget, Mr. Adekahlor acknowledged that some tax reforms, such as a reduction in the effective Value Added Tax rate, could cause short-term revenue declines. However, he explained that these measures aim to simplify compliance, enhance efficiency, and ultimately broaden the tax base.
“Enhanced compliance and streamlined processes are expected to drive revenue growth over time. Complementary measures, including efforts to curb leakages at the ports, are also introduced. Successful implementation of these revenue-enhancing initiatives is critical to funding the budget’s programmes without compromising overall economic stability,” he stated.
Building Fiscal Buffers and Driving Structural Transformation
Mr. Adekahlor observed that Ghana’s economy remains vulnerable to external shocks. He highlighted that with favorable conditions, such as strong gold and cocoa prices on international markets, it is an ideal time to build fiscal and foreign exchange buffers to mitigate future volatility.
“In the medium to long term, the priority must shift towards accelerating structural transformation. Diversifying the economy beyond traditional sectors is essential to reduce vulnerability to global disruptions and position Ghana for sustainable, inclusive growth,” he explained.
Ensuring Value for Money in Public Expenditure
Noting that the 2026 Budget entails significant government spending, Mr. Adekahlor stressed the importance of robust expenditure controls and Value for Money (VfM) processes across all MDAs. These measures are essential to minimize waste, enforce procurement compliance, and ensure maximum returns on every cedi spent.
He highlighted the need for thorough evaluation and assessment of projects before financial commitments are made, particularly social intervention programmes, to ensure their effectiveness and sustainability.
“The establishment of the Value for Money Office (VfMO) could be transformative if implemented effectively, rather than becoming an additional bureaucratic layer within the public financial management system,” he noted.
Mr. Adekahlor also commended the government for validating expenditure arrears and conducting payroll audits to remove ghost names, calling these crucial steps toward achieving VfM and strengthening fiscal accountability.
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 will remain key growth pillars, contributing 47%, 31%, and 22% respectively.
Inflation is expected to remain within the medium-term target of 8% ± 2, supported by improved food supply and enhanced policy coordination, while the fiscal deficit is projected to narrow to 4.0%.
Mr. Adekahlor described these indicators as reflecting cautious optimism, driven by fiscal discipline, policy reforms, and improving investor confidence.
“Our goal at EY is to empower businesses, government, and communities to navigate this evolving landscape with clarity and confidence. Our multidisciplinary teams are ready to support clients across tax advisory, strategy and transactions, risk and assurance, consulting, digital transformation, and sustainability,” he concluded.
