The Institute of Public Policy and Accountability (IPPA) has raised concerns about the government’s 2026 Budget, saying the document lacks credible implementation plans for key policies and shows weaknesses in fiscal discipline.
In a statement – signed by the Director of Research and Policy at IPPA, Dr. Kwasi Nyame-Baafi – reviewing the budget presented to Parliament on 13 November 2025, IPPA acknowledged improvements in the economy but stressed that most of the gains began before the current administration took office.
IPPA noted strong macroeconomic progress in recent years, including the decline of public debt from 78.5% of GDP in 2021 to 61.8% in 2024, GDP growth rising from 0.5% in 2020 to 5.7% in 2024, and international reserves increasing from US$4.8 billion in 2016 to nearly US$9 billion by the end of 2024. Inflation also fell from 31.9% in 2022 to 22.9% in 2024.
“These indicators confirm that Ghana’s macroeconomic recovery did not begin in 2025 but was already taking shape due to earlier reforms,” the institute stated.
2026 Targets Lack Ambition
IPPA said the 2026 macroeconomic targets set by the government were modest and unlikely to significantly transform the economy.
Key targets include overall GDP growth of 4.8%, non-oil growth of 4.9%, and end-year inflation of 8% — all of which are similar to or lower than the 2025 levels.
The government also expects reserves to remain at three months of import cover, with revenue projected to rise slightly from 16.0% of GDP in 2025 to 16.8% in 2026.
Concerns Over Capital Spending and the 24-Hour Economy
One of IPPA’s strongest criticisms is directed at the government’s flagship 24-Hour Economy Policy, which it says lacks a credible plan.
The institute noted that although the programme is estimated to cost about US$4 billion (GHS 48 billion), the 2026 Budget allocates only GHS 90 million — “just 0.18% of the required amount.”
“This suggests the policy remains symbolic rather than substantive,” IPPA said, adding that the budget offers no clear targets, timelines, or implementation structure.
The institute also expressed concern about poor capital expenditure performance.
In 2025, government committed only about 34% of allocated capital spending and released GHS 9 billion out of the GHS 13 billion approved for the Big Push Infrastructure Project.
“If the Government struggled to meet its capital expenditure commitments in 2025, it is unclear how it will finance the ambitious programmes outlined for 2026,” the statement warned.
Recommendations
IPPA called on the government to reassess the 2026 Budget to make it more realistic and improve transparency and credibility.
It recommended that the government:
- Provide a fully costed and detailed implementation plan for the 24-Hour Economy Policy.
- Prioritise investments that can generate jobs and productivity.
- Improve capital expenditure execution.
- Sustain collaboration with the IMF and other independent institutions to preserve macroeconomic stability.
“Ghana deserves an economic policy framework that is ambitious yet credible,” the statement said.
By Ebenezer Madugu
