For a section of Ghanaians who are not enthused about national budgets since they believe they are often filled with promises that never quite touch everyday life, an economist and lecturer at the Academic City University, Dr. Paul Appiah Konadu, says the 2026 Budget deserves a second look.
In his view, the 2026 budget presented to parliament by the Finance Minister, Dr. Cassiel Ato Forson, is not just another policy outline but a document with what he describes as credibility.
In an exclusive interview with The High Street Journal, the economist explained that it is a budget backed by real performance, clear results, and a government that, for once, has “earned credibility.”
Dr. Appiah Konadu argued that the true test of any budget is not the grammar or the projections, but whether the people presenting it can be trusted to deliver. And for him, 2025 has provided enough proof.
“When we talk about the quality of a budget, one key thing is the credibility of the government that is presenting the budget. And if the performance of this government in 2025 so far is anything to go by, then we can see that the government has proven itself to be credible,” he emphasized.
Promise of Expenditure Control Delivered
Citing reasons why he believes the policy has some credibility and not mere promises, he explained that Ghanaians have long complained about governments making big promises about tightening belts only to stretch them again months later.
But Dr. Konadu says this time is different. He points to the government’s promise of expenditure rationalisation, which is essentially spending wisely, and says the numbers speak loudly. Instead of the projected GH¢269 billion for 2025, expenditure is now expected to end the year at around GH¢251 billion.
For an economy that has battled rising debt and pressure on public finances, this is no small feat.
“They promised expenditure rationalisation in 2025. And so far, they have lived up to expectations. If you look at the expenditure for 2025 so far, projected to end the year around $251 billion, even less than the projected $269 billion,” he argued.
Satisfactory Revenue Performance
On the revenue side, the economist noted that Ghana posted a 1.6% surplus as of September 2025, which is better than the 1.5% expected for the entire year. In simple terms, the country brought in more than it spent during that period, something that once felt almost impossible.
He believes this gives citizens more reason to trust that the 2026 budget numbers are not just “wishful thinking.”
He said, “In terms of revenues, we have not done that badly, achieving an overall budget balance of about 1.6% of GDP surplus as of September 2025, against the projected end-of-year balance of 1.5% surplus primary balance by the end of 2025.”
Inflation Surprise & Stable Cedi
For years, inflation has been the painful thief that quietly eats away at salaries, savings, and the cost of living. But the drop from the projected 11.9% for 2025 to the current 8%, and expected to hit around 6% by year-end, signals a major turnaround.
This, he says, is impressive by every standard. This means people can feel it when they go to the market. Prices may not be cheap, but they are no longer running.
One of Ghana’s biggest economic struggles has been the unpredictable cedi. But according to Dr. Konadu, the currency has stabilised over the months, helping to ease pressure on debt. Debt-to-GDP, which stood at 61.8% at the end of 2024, now sits around 45%.
He attributes this improvement to a combination of spending discipline, a stronger cedi, and deliberate government interventions. He projects that with a manageable debt burden and a stable currency, it shows the government is in control.
Borrowing Costs Drop Sharply
He further mentioned another area, which is borrowing costs. Borrowing costs, the economist noted, have also plummeted. Rates for short-term government bills, which were around 28% at the end of 2024, now hover around 10.7%.
Lower interest rates mean cheaper financing for the government and a long-term benefit for debt sustainability. Dr. Appiah Konadu says that for a country recovering from a crisis, that is huge progress.
The Bottomline
Putting all these pieces together, lower spending, steady revenue, falling inflation, a stronger cedi, dropping debt levels, and lower borrowing rates, Dr. Appiah Konadu believes the government has demonstrated enough competence to be taken seriously.
In simple terms, he said, he government has earned credibility, so is the 2026 Budget Statement and Economic Policy.
He admits that Ghana still faces challenges. But for him, the difference is that this time, the budget is grounded not in hope, but in a track record. The economist, therefore, maintains that a budget backed by proof stands a better chance of delivering results that matter in the everyday lives of citizens.
