{"id":262523,"date":"2025-11-04T18:30:12","date_gmt":"2025-11-04T18:30:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/262523\/"},"modified":"2025-11-04T18:30:12","modified_gmt":"2025-11-04T18:30:12","slug":"fiscal-discipline-still-key-as-2026-budget-approaches","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/262523\/","title":{"rendered":"Fiscal discipline still key as 2026 budget approaches"},"content":{"rendered":"

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\u2019s economic recovery.<\/p>\n

It warns against a repeat of past fiscal slippages and particularly as the government seeks to clear outstanding payables and sustain macroeconomic gains.<\/p>\n

The Fund notes that after navigating debt restructuring and fiscal challenges in 2024, Ghana\u2019s economic outlook remains cautiously optimistic but fragile.<\/p>\n

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.<\/p>\n

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The programme\u2019s success, according to the Fund, will depend on the government\u2019s ability to manage limited resources while maintaining a credible fiscal framework.<\/p>\n

IMF Resident Representative in Ghana, Dr. Adrian Alter, in an interview on\u00a0Channel One TV\u2019s\u00a0Point of View with Bernard Avle, said the Fund\u2019s 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.<\/p>\n

\u201cAfter coming from debt restructuring and all the fiscal slippages that happened in 2024, fiscal discipline is extremely important,\u201d Dr. Alter said. \u201cGiven 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.\u201d<\/p>\n

Dr. Alter noted that Ghana\u2019s fiscal consolidation drive must go hand in hand with stronger domestic revenue mobilisation.<\/p>\n

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.<\/p>\n

\u201cThe 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, \u201d he added.<\/p>\n

Despite calls for tighter fiscal controls, the IMF maintains that social protection must remain central to Ghana\u2019s economic strategy.<\/p>\n

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.<\/p>\n

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