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As the Finance Minister, Dr. Cassiel Ato Forson prepares to present the 2026 national budget, the International Monetary Fund (IMF) has affirmed that fiscal discipline remains the cornerstone of Ghana’s economic recovery. It warns against a repeat of past fiscal slippages and particularly as the government seeks to clear outstanding payables and sustain macroeconomic gains. The Fund notes that after navigating debt restructuring and fiscal challenges in 2024, Ghana’s economic outlook remains cautiously optimistic but fragile. Ghana is currently implementing a $3 billion IMF-supported programme aimed at restoring macroeconomic stability, rebuilding reserves, and achieving debt sustainability after years of fiscal imbalances and a debt restructuring in 2023. The programme’s success, according to the Fund, will depend on the government’s ability to manage limited resources while maintaining a credible fiscal framework. IMF Resident Representative in Ghana, Dr. Adrian Alter, in an interview on Channel One TV’s Point of View with Bernard Avle, said the Fund’s guidance focuses on strict adherence to the Fiscal Responsibility Act, particularly the goal of maintaining a 1.5 percent primary surplus on a commitment basis. “After coming from debt restructuring and all the fiscal slippages that happened in 2024, fiscal discipline is extremely important,” Dr. Alter said. “Given limited resources and the target of a 1.5% primary surplus, the government will need to prioritize projects, make spending more efficient, and at the same time protect vulnerable groups.” Dr. Alter noted that Ghana’s fiscal consolidation drive must go hand in hand with stronger domestic revenue mobilisation. He pointed to an ongoing comprehensive VAT reform as a key step toward broadening the tax base and simplifying the system to improve compliance and revenue performance. “The authorities are advancing a comprehensive VAT reform which aims at broadening the tax base and streamlining its structure. That is an important reform by the government, ” he added. Despite calls for tighter fiscal controls, the IMF maintains that social protection must remain central to Ghana’s economic strategy. Dr. Alter highlighted key programs including the Livelihood Empowerment Against Poverty (LEAP) initiative, the Ghana School Feeding Programme, and the National Health Insurance Scheme (NHIS) as essential safety nets that should not be compromised.
