A former Minister of Finance, Dr Mohammed Amin Adam, is pushing for the enactment of laws that will prevent the country from borrowing for consumption.

The former minister stated, “So I recommend that the government should introduce what is called the ‘golden rule’ by law in Britain, which prohibits us from borrowing for consumption.”

His remarks were part of a statement delivered during the parliamentary debate on the 2026 Budget.

Dr Amin Adam noted that although Ghana’s public financial management framework already prohibits the virement of capital expenditure to recurrent expenditure, it does not explicitly prevent borrowing for consumption.

He stressed that it is time for the country to review how revenue allocations are tied to expenditure in the national budget.

“If we have to focus on capital investment going forward, then this is the way to go, please,” he added.

The former minister argued that the practice of using both tax revenue and borrowed funds to finance components of the budget without distinguishing between recurrent and capital expenditure must end.

“This must stop; we should not borrow for consumption anymore,” he emphasised.

Growth and job creation

Dr Amin Adam also raised concerns about the lack of capital investment and how this continues to hinder economic transformation.

“Generally, our capital investments have been lower, and that is why we do not get real transformation,” he said.

He cited recent trends in capital expenditure: “The 2026 budget proposes 3.6% of GDP for capital spending. This is higher than the 1.5% of GDP proposed in 2025 but lower than the 4.6% we used in 2024.”

“That is why, in spite of the stability, the government is projecting the economy to grow at 4.8% in 2026,” he stated.

Regarding revenue mobilisation, the former minister also expressed worry about the country's revenue outlook for 2026.

He noted that “the 2025 revenue performance up to September shows that the system is struggling.”

He backed his argument with data from the budget:

• By end-September 2025, revenue and grants amounted to GH¢154.9 billion, equal to 11.1% of GDP.
• The full-year target is GH¢226.5 billion, equal to 16.0% of GDP.

“To hit that number, Q4 alone must deliver GH¢71.6bn, nearly 5% of GDP in one quarter,” he highlighted.

This means:

• Q4 would have to generate 32% of the entire year’s revenue.
• Q4 would need to be 40% bigger than the average quarter so far.

“We must ask, what policy, what compliance breakthrough, what structural shift and what magic supports such an extraordinary fourth quarter?” the former minister noted.

Dr Amin Adam cautioned that, given the country’s historical performance, the government may struggle to mobilise the required revenue for 2026, which is “the target that it has projected in the 2026 budget.”