BY VALENTIA TETTEH
Former Minister for Finance, Dr. Mohammed Amin Adam, has urged Ghanaians to temper their expectations following the presentation of the 2026 Budget by Finance Minister Dr. Cassiel Ato Forson. Speaking to journalists in Parliament on Friday, November 14, 2025, Dr. Adam said the budget does not demonstrate the level of investment needed to drive meaningful economic transformation.
Dr. Adam expressed concern that capital expenditure allocations remain too low to support infrastructure-led growth.
“Capital expenditure in 2026 is set at only 3.6% of GDP, far below the level required for significant developmental impact,” he noted.
He said rigid expenditure commitments continue to dominate government spending, creating little room for the productive sectors to expand.
“Wages account for 5.7% of GDP, interest payments 3.6%, and statutory transfers about 4%. These rigid items consume more than two-thirds of total spending, leaving very limited room for transformative investments,” he said. “In reality, this 2026 Budget is not investment-driven and masks serious challenges.”
Dr. Adam argued that despite commitments to reform, the structure of the budget remains unchanged.
“It shows there is no structural shift. The composition remains the same. We urge Ghanaians to seriously manage expectations as we are in for another year of disappointment.”
He warned that the productive sectors of the economy continue to be deprived of the investment they require, worsening the country’s revenue mobilisation challenges. According to him, the 2026 Budget figures confirm warnings given by the Minority during the 2025 budget debate.
“There is no way you can generate revenue from a growthless economy. We told the Minister the revenue targets were unrealistic. The data in the 2026 budget has vindicated our stand.”
Dr. Adam cited provisional revenue figures for the first three quarters of 2025, which fell short of government projections:
· Total revenue and grants: GHS154.9 billion against a target of GHS162.6 billion
· Domestic revenue: GHS153.9 billion against a target of GHS160.7 billion
· Tax revenue: GHS124.6 billion against a target of GHS133.5 billion
He criticised the Finance Minister for avoiding an open admission of the revenue shortfalls.
“The Minister lacked the courage to concede that all is not well with fiscal consolidation. This is why he had to forcefully underspend in productive sectors, a practice he now calls fiscal discipline.”
Dr. Adam also referenced concerns raised by public institutions about delayed funds and the sweeping of accounts.
“This year has been heavily associated with the sweeping of accounts of various departments and agencies, including the District Assemblies Common Fund. This is a symptom of revenue failure.”
Touching on 2026 revenue projections, he described them as overly optimistic.
“The Government expects revenue and grants to rise to 16.8% of GDP, driven by an 18.8% increase in non-oil tax revenue. These targets rely heavily on compliance and digitalisation gains that historically materialise gradually.”
He warned that if revenue targets are not met, Ghanaians should expect consequences similar to previous years.
“If revenues fall short, as we saw in 2025, we may see new taxes introduced mid-year, accumulation of arrears, or cuts to capital and social programmes.”
Dr. Adam said these issues signal the potential for “significant fiscal stress” in the year ahead.
