'Government can’t run 2026 budget like this, it must reflect its promises' - Prof Bokpin warns

Economist Prof. Godfred Bokpin has warned the government about its fiscal path. He believes it cannot continue this way into 2026.

The government must align its budget with promises made to Ghanaians. “From 2026, the government will need to operate its own budget,” Dr. Bokpin said on JoyNews’ PM Express.

He noted that current efforts are insufficient. “We are not doing much this year,” he stated.

While stabilizing the cedi is positive, he opposes major market disruptions. Ghana should focus on building long-term confidence instead.

“I prefer accumulating reserves for sustained confidence beyond five or ten years,” he added. The 2026 budget indicates a need for change in fiscal strategy.

Dr. Bokpin emphasized that stabilizing the currency shouldn't hinder real economic transformation. He pointed to Asian growth dynamics as an example of effective policies.

He questioned whether current policies work together effectively for economic growth. “We want to ensure all these factors link up in building the economy,” he said.

He highlighted local production costs as a significant issue. “How does this affect local versus imported goods?” he asked.

Data shows concerning trends regarding inflation rates. “From November 2023, inflation on imported products rose higher than local inflation,” he explained.

This trend poses risks for the private sector's competitiveness. “What does this mean for local producers?” Dr. Bokpin queried.

He acknowledged recent positive inflows into the economy. “In a sense, we can say we’ve seen these inflows playing out.”

However, he cautioned that without deeper reforms, these gains won't last long. “For now, there’s potential for this path, but we must stabilize it.”

His message is clear: Ghana’s current fiscal strategy has an expiry date. “From 2026,” he concluded, “you’re on your own.”