Government’s 2026 Budget: A Focus on Stability, Growth, and Reform
The government has outlined a clear vision for 2026, emphasizing fiscal discipline and structural reforms to maintain the macroeconomic stability achieved in 2025 while steering the economy toward transformation and job creation. This strategy is detailed in the 2026 Budget Statement and Economic Policy presented to Parliament by Finance Minister Dr. Cassiel Ato Forson.
The Priorities of the 2026 Fiscal Plan
The 2026 budget focuses on three main priorities:
- Maintaining fiscal discipline to ensure long-term economic stability.
- Stimulating job creation through large-scale investments in key sectors.
- Strengthening social and security sectors to improve public welfare.
The government aims to achieve a primary surplus of 1.5 percent of GDP and sustain single-digit inflation and exchange rate stability. These goals are designed to preserve the progress made in 2025 and build a foundation for future growth.
Building on Past Successes
Dr. Forson highlighted that 2025 marked one of the strongest fiscal recoveries in Ghana’s history. The primary balance shifted from a 3 percent deficit in 2024 to a 1.6 percent surplus by September 2025. This improvement was attributed to tighter spending controls and enhanced revenue mobilisation.
Key achievements in 2025 include:
- Non-oil tax revenue rising to 8.7 percent of GDP from 7.8 percent.
- Treasury bill rates falling, saving about GH¢8.8 billion in interest costs.
- Public debt decreasing from GH¢726.7 billion (61.8 percent of GDP) in 2024 to GH¢630.2 billion (45 percent of GDP) by October 2025.
- Negative debt accumulation rate of 13.3 percent, reflecting prudent borrowing and fiscal restraint.
Market conditions also improved significantly, with Treasury yields dropping more than 1,600 basis points, and Eurobond prices rising 17 percent. These developments restored investor confidence and strengthened market trust.
Fiscal Strategy and Revenue Reforms
Central to the 2026 budget is a comprehensive fiscal strategy focused on prudent spending, improved tax compliance, and a fairer tax system. The government aims to lift non-oil revenue to 15.7 percent of GDP in 2026 from an estimated 15.1 percent in 2025.
Key tax reforms include:
- Abolishing the COVID-19 Health Recovery Levy.
- Reducing the effective VAT rate from 21.9 percent to 20 percent.
- Increasing the VAT registration threshold from GH¢200,000 to GH¢750,000.
- Abolishing VAT on mineral reconnaissance and prospecting.
- Extending zero-rating for locally manufactured textiles until 2028.
These changes are expected to make Ghana a more business-friendly economy, reduce the cost of doing business, and create opportunities for expansion and job creation.
Digitalisation and Tax Modernisation
The Ghana Revenue Authority (GRA) will introduce new digital tools to strengthen tax administration. These include:
- Fiscal electronic devices to monitor taxable transactions.
- Digital platforms for collecting VAT on cross-border e-commerce.
- A public VAT reward scheme encouraging citizens to collect receipts for purchases.
These initiatives aim to increase transparency, accountability, and efficiency in revenue collection.
Comprehensive Review of Tax Laws
Beyond VAT, the Finance Ministry will conduct a full review of the Income Tax Act, Customs Act, and Excise Duty Act to align them with global best practices. This overhaul will focus on simplifying compliance, promoting equity, and ensuring that multinational and digital companies pay their fair share of taxes.
Key areas of focus include:
- Trade facilitation under the Customs Act, drawing on World Trade Organisation and World Customs Organisation standards.
- Revising the Excise Duty Act to reflect international trends in taxing carbon-intensive and unhealthy products.
Addressing Revenue Leakages and Strengthening Port Systems
To combat revenue leakages at ports, the government plans to deploy AI-driven pre-arrival inspection systems to detect under-invoicing and misclassification of goods. This technology will help close loopholes, enhance customs revenue, and strengthen the ability to combat smuggling and illicit trade.
In 2024, imports valued at GH¢204 billion were recorded, yet only GH¢85 billion was deemed taxable due to weak classification and valuation processes. The new systems are expected to address these issues effectively.
Spending Reforms and Expenditure Discipline
On the expenditure side, the government will rationalise spending by eliminating low-value programs and capping non-essential expenditures such as foreign travel, workshops, and vehicle purchases. Funds saved will be redirected to infrastructure, energy, agriculture, and education projects that directly impact job creation.
Priority will also be given to flagship programs such as the ‘24-Hour Economy’ initiative and the ‘Big Push’ infrastructure program, which aim to expand productive capacity and attract private investment.
Social protection commitments will remain intact, with funding maintained for programs such as the Livelihood Empowerment Against Poverty (LEAP), National Health Insurance Scheme, School Feeding Programme, and free secondary education.
To improve efficiency and transparency in public spending, the government will integrate the Ghana Electronic Procurement System (GHANEPS) with the Ghana Integrated Financial Management Information System (GIFMIS). Strict enforcement of sanctions under the Public Financial Management Act will also be implemented.
