"Dr Amin Adam Accuses Gov’t of “Trading Growth for Optics”; Warns 2026 Budget Risks Deepening Economic Stagnation"

Dr Amin Adam Accuses Gov’t of “Trading Growth for Optics”; Warns 2026 Budget Risks Deepening Economic Stagnation

Former Minister for Finance, Dr Amin Adam, has accused the government of creating an illusion of fiscal discipline by deliberately under-executing public investment, arguing that the practice has deprived the economy of nearly US$469 million in 2025 and eroded future growth potential.

Speaking at a press conference on Friday, November 2025, on the Minority’s preliminary position on the 2026 Budget and Economic Policy, Dr Adam argued that Ghana’s constrained growth outlook reflects structural weaknesses masked by what he termed “accounting optics”.

According to him, the government’s systematic under-spending of Parliament-approved capital allocations has resulted in “permanently lost future capacity”, weakening job creation and undermining the prospects for long-term transformation.

“The Government, by systematically under-spending the investment budget that Parliament approved, has made Ghana approximately US$469 million poorer in 2025 alone,” he said, adding that the approach “created an illusion of fiscal prudence built entirely on postponed progress and abandoned promises.”

Liquidity withdrawal and collapsing demand

Dr Adam further criticised the government’s inflation strategy, stating that the recent decline in inflation had come at significant cost to households and businesses. He referenced the Bank of Ghana’s indication that GHS60 billion had been withdrawn from the economy by August 2025 to curb inflation.

“The withdrawal of liquidity has dried up the pockets of Ghanaians,” he argued. “Farmers cannot sell their produce, traders are struggling, and aggregate demand has been severely suppressed.”

He added that traders should expect weaker-than-normal sales during the Christmas season, attributing it to the liquidity drain.

Concerns over defence procurement

The former Minister also questioned the government’s prioritisation of defence procurement, following plans to acquire two executive jets, four helicopters, and two offshore patrol vessels at a cost of US$1.2 billion.

He argued that such expenditure was inconsistent with the government’s calls for worker sacrifices, adding that the procurement was being justified using “the recent helicopter accident involving some of our gallant citizens.”

Growth concerns and fiscal credibility

Dr Adam said that while government had highlighted macroeconomic stability, the benefits were not translating into stronger growth. He noted that GDP expanded by 6.3% in Q2 2025, below the 7% recorded in the same period of 2024.

“Real economic stability should engender growth. Why is this stability not generating growth?” he asked.

He further questioned the government’s projection of 4.8% GDP growth for 2026, which he described as inconsistent with its claims of stabilising the economy.

Debt distress classification and credit upgrades

The Minority spokesperson challenged the government’s claim that it had moved Ghana from high to moderate debt distress, arguing that the achievement was largely due to debt restructuring executed by the previous administration.

He cited the restructuring of GHS20 billion in domestic debt, US$13.1 billion in Eurobonds, and US$5.1 billion owed to bilateral creditors, which he said occurred under the Akufo-Addo administration.

“These efforts were the basis for the recent rating upgrades by Fitch, S&P and Moody’s,” he emphasised.

He added that the legislation establishing a fiscal council and introducing a public debt cap of 45% of GDP by 2034 were also initiated under the previous government, noting that the current administration merely re-tabled existing bills.

Claims of poor renegotiation outcomes

Dr Adam also took issue with the renegotiated power contracts and lithium agreement, stating that the savings achieved were significantly lower than what was negotiated by the previous government.

He claimed that the NPP’s renegotiation of power purchase agreements had projected US$1.5 billion in savings, compared to the US$200–300 million now being celebrated by the government.

On lithium, he said the royalty rate had been reduced from 10% to 5%, describing the outcome as “poor negotiation”.

He also criticised civil society organisations for what he described as “loud silence” compared to their opposition to the earlier 10% royalty arrangement.

VAT reforms and tax policy inconsistency

Addressing tax reforms, Dr Adam questioned the reappearance of VAT restructuring proposals in the 2026 Budget despite being announced in the 2025 Budget.

He contrasted the delay with what he described as the government’s speed in passing tax hikes, including increases to the Growth and Sustainability Levy, import levies, and energy sector levies.

“This government does not believe in its own policy, particularly when it comes to the business community,” he said.

Concerns over arrears and fiscal reporting

Dr Adam reiterated earlier concerns about arrears management, recalling that nearly GHS18 billion of arrears reported in the 2024 fiscal framework were not validated by the Auditor-General.

He alleged that the government manipulated fiscal data to influence the primary balance, adding that the IMF “went to sleep” despite breaches of the agreed methodology under the programme’s Technical Memorandum of Understanding.

Budget risks and macroeconomic vulnerabilities

The Minority spokesperson said the 2026 Budget failed to address key fiscal risks, including domestic debt rollover pressures, uncovered Treasury auctions, SOE liabilities, and climate-related vulnerabilities.

He argued that smaller GDP bases and lower revenues were inflating the debt-to-GDP ratio, stating that consolidation built on suppressed growth was unsustainable.

“This is economic stagnation masquerading as progress,” he said. “The 2026 Budget is growthless, jobless, and minimalist — a Galamsey Budget presented by a crawling government.”

Call for credible economic leadership

Dr Adam concluded by calling for transparent fiscal execution, realistic revenue measures, and stronger productive investment to restore confidence.

“Ghana deserves genuine economic leadership rather than broken promises,” he said. “Only through credible policies and disciplined implementation can we unlock the nation’s potential and deliver the prosperous future Ghanaians deserve.