Ghana Economic Budgets: Mahama Focuses on Repair, Not Performance
Ghana economic budgets present two contrasting approaches to national management. A recent analysis compares the 2022 strategy under former President Akufo-Addo with the emerging 2026 plan under President Mahama. The 2022 budget did not reflect the nation’s true fiscal state. Consequently, critics say it resembled a gambler hiding empty pockets. That previous administration faced a key choice. They could have faced the truth or staged a performance. In addition, the government chose performance over reality.
The 2022 financial plan used the right words but told a different story. It promised financial discipline. However, the government spent far beyond the country’s strength. It projected increased revenue dramatically. Specifically, it relied almost entirely on the controversial e-levy tax. Government expected almost GH¢7 billion from the levy. Ghana collected only a little over GH¢600 million. Clearly, this represents a massive miscalculation of expectations.
Behind the scenes, the national situation grew far worse. Interest payments consumed nearly all of Ghana’s earned revenue. Moreover, the national debt reached nearly 93 percent of the entire economy. International markets lost trust in the nation. Leadership acted as if they could simply declare confidence. Eventually, the economy suffered a full collapse. The cedi fell drastically. Prices shot up sharply. Therefore, Ghana defaulted on its sovereign debts. The 2022 budget served as the final push into crisis.
President Mahama’s return approaches budgeting differently. The 2026 budget plan does not pretend that nothing happened. Conversely, it avoids applause-seeking promises and magical shortcuts. Instead, it presents an attempt to stabilize the economic ground. Where Akufo-Addo expanded spending, Mahama tightens fiscal control. The previous era created one big tax and hoped for a miracle. Meanwhile, Mahama quietly widens the tax net through better administration. He avoids headline-grabbing tax measures.
The plan over the next few years remains strict. It emphasizes living within the nation’s means. Furthermore, it focuses on keeping spending under strong control. This strategy ensures the nation makes more than it spends. It targets rebuilding reserves through the GoldBod mechanism. Thus, it aims to restore credibility through disciplined action. Indeed, this work is slow, technical, and often frustrating. Nevertheless, it shows signs of progress for the Ghana economic budgets. Inflation is falling steadily. The cedi shows more stability. Debt levels are beginning to reduce. Investors are beginning to look Ghana’s way again. They respond to discipline, not slogans.
