Fiscal Discipline Must Continue to Protect Economy – Deloitte

Professional services firm Deloitte has urged the Ghanaian government to sustain fiscal discipline by deepening reforms in revenue mobilisation and expenditure management. The firm emphasised that maintaining a primary surplus and further narrowing the fiscal deficit will be crucial for long-term debt sustainability.

In its analysis of the 2026 National Budget, Deloitte noted that the economy’s recent stability provides an opportunity for the government to consolidate gains while pursuing transformational growth. The stronger macroeconomic fundamentals recorded in 2025—reflected in improvements in inflation, GDP, exchange rates, and interest rates—demonstrate the effectiveness of recent policy interventions aimed at fiscal discipline.

The firm stressed that fiscal consolidation remains central to government strategy, evident in the sharp reduction of the budget deficit and the attainment of a primary surplus. These improvements, Deloitte explained, are underpinned by enhanced revenue mobilisation, tighter spending controls, and ongoing reforms in public financial management. Sustaining the primary surplus, it noted, would be vital to strengthening macroeconomic credibility.

Deloitte also recommended accelerating sectoral diversification, particularly in high-growth areas such as ICT, finance, and agriculture, while addressing persistent constraints in industry and energy. Such measures, the firm said, would be essential for achieving inclusive and sustainable growth.

On external resilience, Deloitte advised improving export competitiveness and practising prudent borrowing to safeguard macroeconomic stability. It highlighted the importance of continued investment in human capital and social infrastructure to support productivity, innovation, and equitable development, ensuring that economic stabilisation translates into improved living standards.

Regarding inflation, Deloitte observed that management had been effective, with rates declining sharply in 2025 due to fiscal and monetary discipline. This decline helped restore purchasing power and stabilise the macroeconomic environment. However, the firm emphasised vigilance to mitigate risks associated with external shocks and supply chain disruptions.

Deloitte also highlighted the recovery of gross international reserves after a period of depletion, describing it as a positive sign. The 2026 target of maintaining at least three months of import cover was deemed prudent, as it would help anchor investor confidence and support currency stability. However, the firm cautioned that further efforts were needed to strengthen external buffers through export growth and prudent external borrowing.

Given that Ghana’s reserves in 2025 were largely supported by gold production and favourable global gold prices, Deloitte advised the government to implement measures mitigating potential downside risks, including the possibility of declining gold prices in 2026.

By David Adadevoh

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