2026 Budget Anchored on Fiscal Prudence to Restore Investor Confidence — Economic Policy Advisor to the Vice President
Associate Professor of Finance and Economic Policy Advisor to the Office of the Vice President, Sharif Mahmud Khalid, says the 2026 Budget is fundamentally driven by fiscal prudence aimed at consolidating Ghana’s ongoing macroeconomic stabilisation and rebuilding investor confidence after years of volatility.
Speaking on the Point of View programme on Monday, November 17, 2025, Prof Khalid explained that the Finance Minister’s posture reflects a deliberate effort to maintain stability, safeguard recent gains, and create an environment that attracts both domestic and foreign investors.
“Prudence is the watchword. We are coming from an overheated economy, and even though we are cooling off, the Minister is ensuring the numbers align with real gains that reflect in people’s lives and investor sentiment,” he stated.
Stability Indicators Strengthen Investor Outlook
According to him, the government’s decision to maintain a cautious inflation outlook and stay within improved macroeconomic thresholds is intended to signal sustained stability.
“If someone sits in Denver looking at Ghana’s economy, they want to see the growth rate, the stability levels, and whether the conditions we failed to sustain over the last four or five years are returning,” he noted.
He cited Ghana’s import cover — currently above the four-month minimum threshold at approximately 4.8 months — as a strong marker of stability that supports investor confidence ahead of the 2026 fiscal year.
Infrastructure Sector Confidence Being Rebuilt
Prof Khalid argued that the budget’s emphasis on the infrastructure sector reflects a broader attempt to revive an area that has suffered a significant loss of confidence.
He pointed out that commercial banks, which once readily financed government infrastructure projects, had grown hesitant due to past fiscal uncertainties.
“Back in the day, government projects were a cash cow. Today, when contractors go to banks, they don’t want to listen. That tells you the sector lost confidence,” he said.
He said the renewed allocation to the “Big Push” initiative — with GHS 30 billion earmarked — continues from previous allocations and demonstrates consistency and prudence in government spending.
Continuity and Prudence to Anchor 2026 Fiscal Outlook
Prof Khalid noted that the preservation of earlier allocations under the Big Push and their continued utilisation in the current budget reflect stability and constancy in policy direction.
“The allocation still exists in terms of spending. That tells you a certain level of prudence. The continuity of the GHS 30 billion allocation underscores stability and reinforces investor confidence,” he added.
He stressed that the overarching theme of the 2026 Budget is fiscal restraint, consolidation, and the rebuilding of what he termed “evaporated confidence” across critical sectors of the economy.
“At the end of the day, investors follow the money. If the Budget shows continuity, stability, and prudence, that is exactly what will attract capital back into Ghana,” Prof Khalid stated.
