Prof. Boadi: Contract Awards must precede 2026 implementation

The Executive Director of the Institute of Economic Research and Public Policy (IERPP), Prof. Isaac Boadi, has cautioned government against adopting what he described as unrealistic revenue strategies and poorly structured implementation timelines within the 2026 Budget, warning that such approaches could undermine fiscal stability and long-term economic recovery.

He made this comments at IERPP’s press conference at the Ghana International Press Centre on Thursday, November 20, 2025, under the theme, “The 2026 Budget: Ambitions, Pressures, and Possible Pitfalls.”

Prof. Boadi stressed that the government must confront fundamental weaknesses in revenue mobilisation instead of “chasing impractical measures that cannot deliver the expected results.”

He questioned the timing for awarding contracts, noting that the impact of budget-related projects depends on when contracts are issued and executed.

“Should we award contracts in 2026 or 2025? Obviously, contracts are issued now so they can be implemented in 2026. If we want value for money, then when will the true economic effect be felt — 2025, 2026, or 2027?” he asked. According to him, the budget’s assumptions about revenue gains from procurement efficiencies lack clarity because “we assume contracts have already been awarded,” creating inconsistencies in projected revenue outcomes.

Prof. Boadi also raised doubts about the government’s plan to tap into cryptocurrency-related revenues through the newly introduced Virtual Asset Service Providers Bill.

“Even in advanced economies, how much revenue is generated from cryptocurrencies? How many people actively trade in these assets?” he noted, arguing that relying on such a narrow and volatile sector for revenue would be misguided.

“If we want to raise revenue through these means, then we might as well tax GRE officers,” he said, adding that Ghana Revenue Authority officers rarely explore opportunities beyond Ghana’s borders despite being legally allowed to do so.

He emphasised that the current revenue measures, although numerous, are not strong enough to withstand Ghana’s mounting debt obligations.
“In the years ahead, several debt negotiations and deferred payments will start maturing. If we keep depending on crypto revenues and vague value-for-money projections, what are we really doing as a country?” he queried.

Prof. Boadi outlined a number of reforms and bills recently presented to Parliament, including the Public Procurement Regulations, the Ghana Investment Promotion Fund policy revisions, the AI-powered data analytics system for customs, and amendments related to the GETFund, National Insurance, and the Copy Levy, but stressed that these proposals must translate into real revenue impact, not remain theoretical.

Responding to criticisms that IERPP highlights problems without offering solutions, he clarified that while the institute is not obligated to design government policy, it continues to propose practical reforms that can expand the country’s revenue base.

“We are often criticised for not providing solutions, but we are not paid to run the country. Those at the helm must give us solutions. That said, we have outlined several actionable measures to support revenue enhancement,” he stated.

Among the key recommendations he outlined were modernisation of property rate administration, which he described as one of the most viable and underutilised revenue sources, and mining sector revenue audits, especially in the context of rising gold prices.

“When gold prices go up, royalty payments remain the same. The government must amend the laws to take advantage of price surges.”

Agricultural value chain formalisation to improve productivity and capture untapped revenue.

Incentives for local manufacturing to strengthen domestic industry.

Improved state-owned enterprise (SOE) dividend performance, noting that many SOEs make minimal profits but still feature prominently in revenue projections. “If government assigns clear dividend quotas and ratios, SOEs will sit up,” he said.

Enhanced revenue from the Tourism and Creative Arts sectors, which he lamented have not reached their full potential.

On Ghana’s overall progress from January to September, he noted that while some improvements have been recorded, the country still falls significantly short of its fiscal targets.
“Revenue-wise, we have not done well. We assessed this administration at 40.5 percent. Yes, there have been improvements, but the fundamental targets remain unmet,” he said.

Prof. Boadi reaffirmed IERPP’s commitment to providing objective, evidence-based assessments.
“We want the public to know that as an institute, we also provide solutions. Our hope is that government will take these recommendations seriously if we truly want to broaden the revenue base and achieve sustainable development.”