By: Ashiadey Dotse
Associate Professor and Dean of the Faculty of Accounting and Finance, Prof. Isaac Boadi, says the 2026 Budget shows a weak growth outlook despite government efforts to link tax reforms, infrastructure development and the 24-hour economy.
”In the 2026 budget, if you ask for my opinion, I see weak growth outlook.” he said.
Prof. Boadi speaking in an interview on GTV’s breakfast show explained that although governments often begin with good intentions, their policies must be measured through manifestos and budgets. Reviewing the 2025 and 2026 budgets, he said the signs of strong growth are still missing.
According to him, the government has abolished some taxes and validated arrears saving the country about GHC 10 billion and also recorded improvements in inflation and reserves. However, he noted that several flagship programmes have not yet been fully implemented, which weakens the overall economic outlook.
Prof. Boadi said the government is trying to connect three key policy areas tax reforms, the “Big Push” infrastructure programme, and the 24-hour economy to drive economic growth. But he believes the projections for each of these pillars are weak on their own, making their combined impact uncertain.
He also pointed out that Ghana’s longstanding structural challenges remain evident in the 2026 Budget. He highlighted the high cost of compensation and interest payments, which together consume more than half of the entire budget, leaving little room for transformative investments.
He indicated that he does not see a departure of the 2026 budget from the 2025 budget, adding that the same pressures existed under the previous administration and continue today.
On tax reforms, Prof. Boadi acknowledged reductions in the effective VAT rate and an increase in the VAT registration threshold. He said these changes mean some small businesses will fall outside the tax net. Government expects a 5% growth in businesses as a result, but he questioned how the state plans to recover the GHC 5.7 billion revenue loss that the reforms will create.
He said the budget does not clearly show how much tax compliance will contribute towards closing the gap and expressed concern that the government may eventually have to cut expenditure if the expected revenue is not realised.
Commenting on the “Big Push,” he noted the allocation of about GHC 10 billion, mostly to be financed through the Development Bank and GIF. While describing it as one of the largest infrastructure investments in recent times, he stressed that actual spending in previous years has been much lower than budgeted.
