All Eyes on Ato Forson as 2026 Budget Takes Centre Stage

 

Today, Thursday, November 13, all attention will be on Finance Minister Dr. Cassiel Ato Forson as he appears before Parliament to present the 2026 Budget Statement and Economic Policy of the Mahama-led government.

After a year of difficult adjustments and gradual economic improvement, this Budget carries exceptional weight. The question on many minds is whether it will continue the path of fiscal consolidation to entrench stability or pivot toward bold, transformative growth that creates jobs, modernises markets, and makes life easier for ordinary Ghanaians.

As the nation waits, expectations are high. From business associations and student groups to organised labour, investors, and trade unions, each constituency has its own list of priorities.

Key questions remain: What relief will businesses receive? How will the IMF programme shape fiscal space? Will stalled projects resume? What becomes of VAT and the COVID-19 levy? And most crucially, will government play it safe or take risks to spark growth?

Only time will tell whether these expectations will be met.

What Business Groups Want

For Dr. Forson, crafting this Budget has likely been a delicate balancing act. Businesses are not a single bloc. Manufacturers, traders, and the food and beverage sector all want different things, even if their concerns overlap — lower operating costs, clear tax rules, access to credit, and targeted measures to make local production more competitive.

The Food and Beverage Association of Ghana (FABAG), for instance, has outlined seven priority demands, including the reduction of nuisance and distortionary taxes, stronger support for local producers, and initiatives that make it easier for factories to access financing and raw materials. They also want tax reliefs and a clear path to import substitution.

The Ghana Union of Traders Association (GUTA), one of the country’s largest business groups, is also watching closely. It seeks policies that simplify VAT rules, make cross-border trade more predictable, and cut both the cost and time of doing business.

Meanwhile, the Association of Ghana Industries (AGI) is pushing for incentives that protect local manufacturing through targeted tariffs, local procurement priorities, and measures to revive domestic production capacity, especially for inputs used by miners and exporters.

In short, businesses are calling for lower nuisance taxes, predictable VAT policies, affordable credit, and strategic public investments that stimulate private-sector supply chains.

The IMF Programme

Ghana remains under a three-year Extended Credit Facility (ECF) arrangement with the International Monetary Fund. The IMF staff reached a staff-level agreement on the fifth review in October 2025, paving the way for a disbursement of about US$385 million.

Previous reviews and disbursements have played a key role in stabilising the economy, rebuilding reserves, and restoring investor confidence.

Although the programme officially ends this year, some economists believe government should consider extending or carefully sequencing it to protect ongoing reforms and secure financing, particularly as debt restructuring and structural reforms continue.

The Finance Minister will have to reassure both the Fund and investors that Ghana remains committed to its fiscal targets while also using the breathing space to invest productively in growth.

Reviving Critical Projects

Contractors and project developers will be closely watching how the Budget addresses infrastructure spending. Some projects inherited from the previous administration were halted for audit and review, but there are signs of renewed commitment.

The Takoradi Market Circle project, for example, has returned to national attention. Dr. Forson inspected the site days before the Budget presentation, signalling that government plans to resume the project early next year.

Traders and residents in Takoradi will be looking for clear budgetary allocations and timelines. Analysts caution that vague promises to “resume work” will not be enough — the market expects concrete financing details, procurement schedules, and assurances for displaced traders.

Across the country, contractors will also be looking for clarity on which projects will be restarted, which new ones will begin, and how they will be funded.

VAT Reform on the Horizon

VAT reform is another major focus. The Ministry of Finance has been preparing a new VAT Bill after extensive consultations, with plans to include it in the 2026 Budget.

The mid-year review had hinted at changes to simplify the tax system, address the COVID-19 levy, and streamline compliance for businesses. Stakeholders expect the Budget to provide clarity on these measures and outline how government intends to balance revenue mobilisation with business-friendly reforms.