News Guide Africa

Tag: 2026 Budget

  • Gov’t rejects low spending claims, unveils billions allocated to key sectors

    Gov’t rejects low spending claims, unveils billions allocated to key sectors

    By Adnan Adams Mohammed

     

    The Government of Ghana has strongly pushed back against critics claiming a slowdown in public spending, presenting Parliament with an extensive breakdown of billions of cedis deployed across crucial sectors of the economy under the 2026 Budget.

    Addressing Parliament, government representatives insisted that state funds are being deployed responsibly to drive national development while strictly preserving fiscal discipline following recent macroeconomic stabilization efforts.

    Discipline Meets Development

    Addressing lawmakers in Parliament, government officials emphasized that while a narrative of reduced public expenditure has gained traction among political opponents and market commentators, the financial figures demonstrate substantial funding for infrastructure, social protection, education, and health.

    “We are operating on the fundamental principle of spending only what we have while ensuring that every single cedi is deployed prudently,” stated the government update presented to Parliament. “The narrative that public spending has stalled is completely detached from the reality on the ground. We are maintaining fiscal discipline without compromising on critical social investments and development projects.”

     

    Major Allocations Across Essential Sectors

    According to the official fiscal update, compensation for public sector employees accounted for the largest single expenditure at GH¢48.8 billion, which included GH¢4 billion in contributions toward the Social Security and National Insurance Trust (SSNIT) and Tier-2 pension schemes.

    Debt servicing commitments were also highlighted, with GH¢21.5 billion paid toward domestic interest obligations, US$700 million spent on servicing Eurobond and foreign debt commitments, and GH¢10 billion disbursed to domestic bondholders to bolster financial sector confidence.

    To support social welfare and sub-national governance, government released GH¢4.4 billion to the District Assemblies Common Fund (DACF), GH¢4.5 billion to the National Health Insurance Scheme (NHIS), and GH¢1.1 billion toward the specialized healthcare initiative, MahamaCares.

    “Our commitment to social safety nets remains unwavering,” the statement noted. “From health coverage through the NHIS to specialized care under MahamaCares and local development via the District Assemblies Common Fund, resources are actively flowing to improve the everyday lives of Ghanaians.”

     

    Investments in Education, Agriculture, and Infrastructure

    The breakdown highlighted extensive support for education, including GH¢4.2 billion transferred to the Ghana Education Trust Fund (GETFund), GH¢1.8 billion for the Free SHS Programme, GH¢537 million under the No Fees Stress Policy for tertiary students, and GH¢915 million for educational goods and services.

    In infrastructure and agriculture, government committed GH¢11.5 billion to total capital expenditure, which encompasses GH¢6.5 billion dedicated to the Big Push Infrastructure Programme and GH¢1.7 billion to the Road Maintenance Trust Fund. Agriculture received GH¢1.1 billion for the Ministry of Food and Agriculture to support flagship initiatives like Feed Ghana, alongside an additional GH¢551 million set aside in escrow for establishing Farmer Service Centres.

    “Investing in our roads, modernizing agriculture, and relieving the cost of education for families are non-negotiable priorities,” a spokesperson added during the parliamentary session. “These allocations directly strengthen our local economies and ensure long-term, sustainable growth across every region of the country.”

     

    Social intervention schemes were also covered, with GH¢877 million disbursed to the Ghana School Feeding Programme, GH¢485 million to the Livelihood Empowerment Against Poverty (LEAP) scheme, and combined millions allocated for teacher and nursing trainee allowances.

    Government concluded its address by assuring Parliament that it will maintain transparency and adhere closely to approved budgetary framework targets for the remainder of the fiscal year.

     

  • Ghana’s private sector gears up for a transformative 2026

    Ghana’s private sector gears up for a transformative 2026

    After a fortnight of quiet on market floors and in boardrooms during the end of 2025 holidays and accompanying festivities, key stakeholders across various sectors of Ghana’s economy are gearing up to return with a renewed focus on translating policy traction into real business outcomes.

    The headwinds of a slower festive trading period are already fading from view as firms, as a result of various year end corporate retreats, have aligned strategies with government priorities designed to keep the economy active around the clock and across industries.

    At the heart of the buzz is the government’s 24-Hour Economy and Accelerated Export Development Programme, officially launched in mid-2025. The initiative aims to reposition Ghana’s economy to “operate at full productive capacity by extending economic activity beyond traditional hours” and to turbo-charge export competitiveness through deeper value chains and market efficiency.

    Under the policy’s design — supported by an investment envelope of about US$4 billion, with government laying US$300 million-US$400 million in seed capital and leveraging private sector participation — business leaders are planning to exploit business opportunities they are identifying in manufacturing, logistics, and agricultural processing, as the enterprises they run get ready to resume full activities from next week.

    With the national budget allocating GH¢110 million for 24-Hour Economy implementation in 2026 and GH¢245 million for agriculture and agro-industrial value chain development, the government has signaled continuity in support for private sector-led growth.

    Executives across industries have been reporting increased engagement with government bodies to align business plans with policy incentives over the past month. Margaret Ansei, CEO of the Ghana Enterprises Agency, has assured that the agency is positioning micro, small, and medium enterprises to scale production, improve packaging and meet export standards as part of 24-Hour Economy readiness.

    Thr government’s Feed Ghana initiative is also generating strong business interest as 2025 transitions into 2026. Banks and financial institutions are lining up behind the agenda. Edward Ato Sarpong, Managing Director of Agricultural Development Bank (ADB) PLC, recently described the Feed Ghana initiative as “precisely the type of intervention that will motivate us to innovate, make deliberate investments, and accompany agribusinesses on their paths to growth and expansion.”

    The Feed Ghana initiative – a flagship programme under the broader agricultural transformation agenda – continues to resonate with corporates and small enterprise alike. Designed to enhance food production, strengthen value chains and reduce reliance on imports, Feed Ghana is expected to contribute not only to national food security but also to economic dynamism.

    The private sector is enthused by the commitment government has already shown. In 2025, government efforts saw direct interventions, such as the purchase of tomatoes and onions to support the programme in Asante Akim North, which not only reduced post-harvest losses but also supplied local institutions. Also, Feed Ghana’s initial pilot of 500 acres of maize is set to expand to 2 000 acres by September 2026; and beyond primary production, government has backed projects such as a US$400 million integrated poultry and feed processing facility in the Ahafo Region, aimed at reducing the nation’s poultry import bills while creating jobs and anchoring export capacity.

    These agricultural policy drivers have been welcomed by agribusiness financiers and industry bodies alike, even as calls persist for strengthening implementation at the district and local levels.

    Indeed, business leaders are urging swift and seamless execution of government’s three flagship business initiatives. Dr Humphrey Ayim-Darke, President of the Association of Ghana Industries (AGI), has warned that operational success depends on reliable infrastructure, consistent regulation and enabling policies that reduce barriers to continuous production.

    “The 24-Hour Economy isn’t simply about longer hours of operation,” said Davies Korboe, President of the Federation of Ghanaian Exporters. “It must enhance value addition and strengthen Ghana’s capacity to produce for local consumption and exports. That focus is what will transform productivity.”

    For many in the private sector, the policy’s emphasis on production transformation, supply chain efficiency and human capital development offers a blueprint to boost output, employ more people and attract long-term investment. A Presidential Committee on Accelerated Export Development has been spearheading coordination between government and the private sector to translate these ambitions into actionable programmes.

    As Ghana transitions into an industrious 2026, the convergence of ambitious national programmes and private sector innovation could mark a defining chapter in its economic development. Business leaders return from the festive period with strategic plans to capitalize on new opportunities, expand into export markets and harness policy-backed incentives.

    With coordinated efforts between state and enterprise, Ghana is gearing up not just to restart the economy in January, but to redefine it — around the clock, across value chains and beyond borders.

     

    By Toma Imirhe

     

     

  • Ghana’s 2026 Budget: A Missed Opportunity for Energy Reform?

    Ghana’s 2026 Budget: A Missed Opportunity for Energy Reform?

    Ghana’s 2026 budget has been hailed as a step in the right direction, with the country making significant strides towards macroeconomic stability.

    However, a closer look at the energy sector reveals a different story. Despite the government’s efforts to address the sector’s challenges, the budget falls short in providing a comprehensive solution to the country’s energy woes.

    The Africa Sustainable Energy Centre (ASEC) has raised serious concerns about the budget, warning that the energy sector remains burdened by long-standing structural weaknesses that threaten fiscal stability. One of the major concerns is the lack of accountability measures in the GH¢20 billion allocated to the energy sector. The allocation lacks clear, performance-based accountability measures, risking an annual bailout rather than driving sector reform.

    The government’s proposal to revise the investment policy of the Ghana Petroleum Funds has also been criticized. The move could expose Ghana to unnecessary fiscal risk and undermine the purpose of the sovereign wealth framework. Furthermore, the plan to construct a 1,200MW state-owned thermal plant in 2026 has been questioned, with critics arguing that it could repeat past mistakes, leading to over US$1.4 billion in excess capacity payments.

    The underutilisation of petroleum revenues is another concern. Only 0.43% of the US$290 million available through the Annual Budget Funding Amount (ABFA) had been spent as of September 2025, weakening investor confidence and delaying progress under the US$10 billion Big Push Programme.

    Experts have called for reforms in the energy sector, including the implementation of a performance-based Cash Waterfall Mechanism (CWM) to ensure efficient revenue management. They also recommend prioritizing renewable energy and smart infrastructure to diversify Ghana’s energy mix and improve energy efficiency.

    The 2026 budget’s shortcomings in the energy sector are concerning, and it’s crucial for the government to revisit and revise its energy strategy to ensure sustainable growth and development.

    As Adnan Adams Mohammed, a financial and economic journalist and author of this feature article puts it, “The budget falls short in addressing the country’s energy challenges, and it’s time for the government to take a more proactive approach to reforming the energy sector.”

    The government must take concrete steps to address the concerns raised by ASEC and other stakeholders. This includes tying the GH¢15.2 billion allocation for shortfalls to specific quarterly loss-reduction targets for the Electricity Company of Ghana (ECG), accelerating private-sector participation reforms, and protecting the mandate of the Ghana Petroleum Funds.

    The energy sector is a critical component of Ghana’s economy, and it’s essential that the government gets it right. With the right reforms and investments, Ghana can achieve sustainable energy security and drive economic growth.

     

    By Adnan Adams Mohammed

     

     

     

     

     

     

     

     

     

     

     

  • 2026 Budget: Hopes kept in suspense as stakeholders skeptical of outcomes

    2026 Budget: Hopes kept in suspense as stakeholders skeptical of outcomes

    Ghana’s 2026 Budget has been welcomed by businesses, but experts are cautioning that it’s just the first step towards real economic reform and job creation.

    Deloitte Ghana’s Country Managing Partner, Daniel Kwadwo Owusu, says the scrapping of the Covid-19 levy and VAT reduction to 20% are positive signs, but Ghana is still far from achieving its economic goals.

    The professional firm raises concern that Ghana lacks reliable youth unemployment data, and existing programs are too small to make a significant impact, although most young Ghanaians work in the informal sector with low pay, no benefits, and no security.

    Juxtaposing that, young entrepreneurs need more than just credit; they need support with export procedures, tax compliance, and market connections.

    Government Initiatives:

    The 24-Hour Economy initiative aims to create 1.7 million jobs by 2028 through industrial parks and manufacturing zones.

    A Member of Parliament Kojo Oppong Nkrumah has admonished the government to prioritize implementation and accountability to turn budget promises into tangible outcomes for Ghana’s youth.

    “If this budget really intends to create growth and jobs, they need to be investing in the job creating initiatives… If your revenue doesn’t perform and you don’t invest it in the things that will create jobs, the young people will come for you at the end of the day.”

    Translating the budget into reality

    At Deloitte’s National Economic Dialogue and Post-Budget Discussions in Accra, Country Managing Partner Daniel Kwadwo Owusu said the budget has been widely welcomed because it reflects what he calls a “responsive” and “listening” approach.

    But he stressed that this early goodwill will only last if the government follows through with bold structural changes, noting that, while the direction of policy is positive, Ghana remains at the very beginning of a longer journey.

    As he put it, “we are nowhere where we want to get to and therefore we are not at the destination at all… (for) every destination, you start at one step.”

    He described the 2026 Budget as that initial step, adding that “this is the good step that the government has taken.” But, he was quick to add that, the real test is whether the budget translates into jobs and productivity at scale.

    Mr. Owusu referenced recent scenes of mass job-seeking such as the crowds at El Wak Stadium (seeking recruitment in the Ghana Armed Forces) as evidence of the urgency. He questioned how Ghana will “create employment for all these masses” and “galvanize all this energy into production.”

    Feedback from Deloitte’s clients, he said, shows cautious approval, especially following the reduction in some taxes.

    He observed that “it appears that the government is listening,” but emphasised that this is only a beginning. What matters now, he argued, is solving “the real problem, real output, delivering employment and delivering what the people are looking for.”

    “Business confidence will hinge on consistency and credibility. People respond and react to what the government does. People want to see trust.”

     

     

    By Adnan Adams Mohammed

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Preparations for issuance of Ghana Infrastructure Bonds begin

    Preparations for issuance of Ghana Infrastructure Bonds begin

    Work has begun in earnest towards preparing the ground for the Government of Ghana to begin issuing dedicated Infrastructure Bonds to finance a package of large public works under President John Dramani Mahama’s “Big Push” programme and other priority projects.

    The move will mark a strategic re-entry into the domestic bond market after post- public debt restructuring restrictions expire in February 2026.

    Staff and consultants at both the Ministry of Finance and the Securities & Exchange Commission – Ghana’s capital market regulator have begun developing the legal and market frameworks needed to support infrastructure bonds which suggests the bonds are likely to be market-standard fixed-income securities with medium-to-long tenors and secondary-market trading facilitation.

    The Securities and Exchange Commission (SEC) has confirmed that infrastructure bonds are among a slate of new investment products under development

    Finance Minister Dr Cassiel Ato Forson announced the decision to issue infrastructure bonds to Parliament in the 2026 budget presentation.

    According to the 2026 Budget Statement, “government will begin the issuance of domestic infrastructure bonds to fund critical infrastructure in the 2026 budget and beyond.” The statement added that this will form part of a broader medium-term debt strategy to lower rollover risks and create fiscal space for productive investment

    The Budget presentation revealed that infrastructure bonds will be targeted at financing clearly specified projects notably roads within the Big Push Infrastructure Programme, energy projects such as the planned gas-to-power investments and a 1,200MW state-owned plant, and other long-gestation capital projects.

    The Budget also makes clear that capital expenditure will rise sharply in 2026, with GH¢57.5 billion earmarked for capex and roughly GH¢30 billion directed to the Big Push roads programme. However how much of this will be financed through infrastructure bond issuances has not been finalized yet.

    Detailed issuance mechanics size of tranches, coupon structure, listing, and whether any instruments will carry project-specific security or state guarantees are expected to be published ahead of the first offerings in 2026.

    While full prospectus details are not yet published, Ghana’s stated aim of deepening the domestic capital market implies the bonds will be open to a wide range of investors: domestic institutional investors (pension funds, insurers, banks), high-net-worth individuals and retail investors via offerings through banks and licensed brokers. Government commentary has also left the door open for participation by non-resident and foreign institutional investors should appropriate registration and currency-risk arrangements be put in place.

    Instructively, Abena Amoah, Managing Director of the Ghana Stock Exchange, has advocated for both domestic and international investor participation in bond issues to finance commercially viable infrastructure projects such as tolled roads, energy and other public economic infrastructure. Here she is looking for Ghana’s pension funds to show up.

    “The pension funds represent about three million of the 15 million people. Even accounting for those not contributing, that’s a large number of Ghanaians doing savings. We need to create a framework to pull these monies together and give them opportunities to grow.”

    She has pointed out that so far the private pension funds have been relatively conservative in building their respective investment portfolios, compared to the state-owned SSNIT, but now they have grown solid enough to invest more enthusiastically.

    However she has warned that “Investors want to be clear on what their funds will be used for, and the thoroughness of the underlying investment documentation and their recourse in the event of inability to meet debt servicing requirements as and when due”

    Their stance follows the negative impacts on the cash flows of portfolio investors from the controversial but necessary Domestic Debt Exchange Programme, executed in 2022 and 2023 which extended the tenors and lowered the coupon rates of several types of government medium and long term sovereign bonds worth some GHc97.7 billion.

    Recognizing this, the 2026 Budget explicitly promises “strict safeguards, transparency, and performance audits to ensure every dollar earns real value.” Indeed prior to that announcement, President Mahama himself declared that future bond issuances by government would be tied to specific projects, thus ring-fencing them.

    True to this promise the structure announced in the 2026 budget ties issuance to a Medium-Term Debt Strategy that emphasizes smoothing maturities through buybacks and targeted cash-management operations. Analysts say these protections will need to be reinforced by legal ring-fencing of bond proceeds, independent project-level fiduciary oversight and clear repayment waterfalls measures the government says it is designing.

    Equally importantly, going forward, new institutional debt issuances to be listed on Ghana’s capital markets will be given formal investment ratings to guide potential investors as to the credibility and safety of the debt issues being offered them.

    The ratings, which will be mandatory, will apply to debt securities issuances on the main board of the Ghana Stock Exchange (GSE); the Ghana Alternative Stock Exchange (GAX) established for smaller companies that do not meet the listing requirements of the GSE itself; and the Ghana Fixed Income Market (GFIM) where both corporate and government debt securities are traded.

    To this end the Securities & Exchange Commission has already licensed two ratings companies Augusto & Company as well as Beacon Ratings to do such ratings while some more applications for licenses to serve as ratings agencies are also before the capital markets regulator.

     

    By Toma Imirhe

     

  • Private sector must take lead role in job creation – Ato Forson

    Private sector must take lead role in job creation – Ato Forson

    Minister of Finance, Dr. Cassiel Ato Forson, has urged the private sector to absorb the majority of Ghana’s labour force as the government pursues a more strategic and sustainable approach to public sector recruitment.

     

    Dr Forson, speaking on a radio interview, explained that the government cannot continue to carry the weight of mass employment, particularly when infrastructure and economic capacity do not match the increasing demand for jobs.

     

    He noted that while the state will continue to employ essential workers such as doctors, nurses and teachers, those decisions must be tied to the availability of facilities. “If you employ doctors, you must have hospitals for them to work in. The same applies to teachers, you need classrooms,” he said, stressing the need for a careful balance between hiring and the provision of public goods.

     

    Dr. Forson said the government is not halting recruitment but is shifting to a more deliberate model aimed at protecting the economy.

     

    He explained that the 2026 Budget has directed allocations to sectors capable of creating large-scale employment through private investment and enterprise growth. According to him, this approach aligns with global trends where governments employ only between 15 and 20% of the workforce.

     

    “Government cannot say they won’t employ, but we have to employ strategically and sustainably. In most countries, the government does just 15 to 20% of the employment, and the private sector does the rest.

     

    “The private sector is the most sustainable, not the government sector, so it should take the bulk of the employment force,” Dr Forson said.

  • 2026 Budget: Gov’t prioritizes energy sector to boost industrial growth

    2026 Budget: Gov’t prioritizes energy sector to boost industrial growth

    The 2026 Budget as read by the Finance Minister places the energy sector at the center of the country’s economic transformation, with a renewed focus on financial stability, renewable energy expansion, and reliable power supply.

     

    Dr. Cassiel Ato Forson announced that the government’s Energy and Green Transition Programme aims to provide sustainable electricity for households, industry, and exports, making it a key driver of national growth.

     

    Key interventions highlighted include the continuation of the Energy Sector Recovery Programme (ESRP), the Cash Waterfall Mechanism, and targeted measures to clear legacy debts owed to Independent Power Producers (IPPs).

     

    These reforms are expected to restore investor confidence, stabilize the operations of the Electricity Company of Ghana (ECG), and improve efficiency across the power value chain.

     

    In line with Ghana’s climate commitments, the government plans to increase renewable energy generation to 15 percent by 2030, supported by projects such as the Bui Solar Expansion, Akonor Solar Park, and off-grid mini-grid systems across Northern Ghana. These initiatives are designed to complement industrial electrification and support the 24-Hour Economy initiative by ensuring continuous power availability.

     

    The Green Jobs and Skills Programme, under the Ministry of Energy and Employment, is training thousands of young Ghanaians in solar assembly, installation, and maintenance, building a skilled workforce for the emerging energy sector.

     

    Dr. Forson emphasized that stabilizing the energy sector, expanding renewables, and developing local expertise will boost industrial productivity, reduce operational costs, and provide a sustainable energy foundation for Ghana’s long-term economic growth.

  • Domestic financing to exceed 2026 fiscal deficit on cash basis …as govt faces net repayments to foreign financiers

    Domestic financing to exceed 2026 fiscal deficit on cash basis …as govt faces net repayments to foreign financiers

    The 2026 budget proposals, presented to Parliament last week by Finance Minister Dr Cassiel Ato Forson confirms that Ghana is now in a new era with regards to financing public expenditure.

     

    On cash basis, the budget contains a fiscal deficit of GHc64.2 billion (4.0% of GDP) but it will require domestic financing of GHc71 billion since foreign financing of the budget is expected to result in a net repayment (outflow) of GHc 6.6 billion (0.4 percent of GDP).

     

    Nevertheless, there are some expected foreign disbursements, including those from the IMF Extended Credit Facility (US$360 million), the World Bank Development Policy Operation and other bilateral partners of US$313.2 million.

     

    On cash basis, the primary deficit stands at GH¢6.5 billion (0.4 percent of GDP).

     

    However, measured on commitment basis, the overall fiscal balance is projected at a deficit of GH¢34.4 billion, equivalent to 2.2 percent of GDP. The corresponding primary balance targets a surplus of GH¢23.3 billion, representing 1.5 percent of GDP, in line with government’s medium-term fiscal target.

     

    Total Revenue and Grants for 2026 is projected at GH¢268.1 billion, up from GH¢226.5 billion in 2025. This projection is based in part on new non-oil tax policy measures expected to yield at least 0.6 percent of GDP as the tax revenue to GDP ratio is projected to rise from 16% to 16.6%, although is still lower than the average for sub Saharan Africa of close to 18%.

     

    See centerspread for detailed breakdown key performance indicators targets, projected revenues and expenditures and key policy initiatives

     

    Non-Oil Tax Revenue, which accounts for about 80.6 percent of total revenue, is projected at GH¢216.1 billion, reflecting a robust 18.8 percent annual growth. Non-Tax Revenue (non-oil) is estimated at GH¢20.9 billion, representing about 7.8 percent of domestic revenue.

     

    Of this amount, GH¢18.2 billion will be retained by Ministries, Departments and Agencies to support operations, while GH¢2.8 billion will be lodged into the Consolidated Fund.

     

    The Internally Generated Funds Capping Policy is expected to yield an additional GH¢329.6 million to the budget.

     

    Oil and Gas receipts are projected at GH¢13.6 billion, while other revenue, including SSNIT transfers to the National Health Insurance Levy and Energy Sector Levies (ESL), is expected to amount to GH¢14.4 billion.

     

    Grants from Development Partners are projected at GH¢3.1 billion, equivalent to 1.1 percent of total revenue and grants. The expected disbursements from grants are entirely project-related.

     

    Total Expenditure on commitment basis for 2026 has been programmed at GH¢302.5 billion, representing 18.9 percent of GDP, and an increase of 20.1 percent over the 2025 projection of GH¢251.7 billion (17.8 percent of GDP).

     

    Dr Forson explained, when presenting the budget that “This allocation reflects a deliberate balance between fiscal consolidation and strategic investment in infrastructure, human capital, and social protection.”

     

    Primary Expenditure – expenditure excluding interest payments is projected at GH¢244.7 billion, equivalent to 15.3 percent of GDP. Compensation of Employees, covering wages, salaries, pensions, gratuities, and social security contributions, is projected at GH¢90.8 billion (5.7 percent of GDP). Use of Goods and Services is projected at GH¢13.2 billion (0.8 percent of GDP).

     

    Grants to Other Government Units, comprising transfers to earmarked funds such as Ghana Education Trust Fund, National Health Insurance Fund, and District Assemblies Common Fund, are estimated at GH¢63.6 billion (4.0 percent of GDP).

     

    Interest Payments are projected at GH¢57.7 billion (3.6 percent of GDP), of which GH¢50.1 billion represents domestic interest and GH¢7.6 billion external interest.

     

    Capital Expenditure (CAPEX) is projected at GH¢57.5 billion (3.6 percent of GDP). Of this, GH¢45.5 billion (2.8 percent of GDP) represents domestically financed capex, comprising GH¢15.5 billion for MDAs and GH¢30.0 billion for the Big Push Infrastructure Programme.

     

    Foreign-financed capex, mainly project loans and grants, is projected at GH¢12.0 billion (0.8 percent of GDP).

     

    Other Expenditures, including ESLA transfers, payments to Independent Power Producers (IPPs) are estimated at GH¢19.7 billion (1.2 percent of GDP).

     

    Based on these allocations, the total appropriation for the fiscal year ending 31st December 2026 amounts to is GH¢357,105,639,079.87

     

    By Toma Imirhe

  • Public wage bill cut down to 33% of domestic revenue

    Public wage bill cut down to 33% of domestic revenue

    As the Mahama government strives to ensure fiscal prudence, it aims to limit the public sector wage bill to 33.8 percent of total domestic revenue.

     

    In the 2026 budget statement and economic policy, the government has projected to rake in GH¢268.1 billion, up from GH¢226.5 billion in 2025, while compensation of employees (covering wages, salaries, pensions, gratuities, and social security contributions) is projected at GH¢90.8 billion (5.7 percent of GDP).

     

    The public wage bill reflects the 9% negotiated increase in base pay for public servants under the Single Spine Salary Structure (SSSS).

     

    This shows a drastic reduction in proportionate terms from the previous years where the public wage bill consumed between 60-70% of total domestic revenue. The reduction can be attributed to improved domestic revenue mobilisation and prudently managed public sector employment.

     

    The Finance Minister during the budget statement presentation in Parliament, last week, indicated that the total revenue projection represents a strong revenue performance supported by new non-oil tax policy measures expected to yield at least 0.6 percent of GDP.

     

    “Non-Oil Tax Revenue, which accounts for about 80.6 percent of total revenue, is projected at GH¢216.1 billion, reflecting a robust 18.8 percent annual growth”, Dr Cassiel Ato Forson read.

     

    “Non-Tax Revenue (non-oil) is estimated at GH¢20.9 billion, representing about 7.8 percent of domestic revenue. Of this amount, GH¢18.2 billion will be retained by MDAs to support operations, while GH¢2.8 billion will be lodged into the Consolidated Fund. The IGF Capping Policy is expected to yield an additional GH¢329.6 million to the budget.

     

    “Oil and Gas receipts are projected at GH¢13.6 billion, driven by improved efficiency across producing fields and steady global oil prices.”

     

    On other sources of revenue mobilisation, Dr Ato Forson noted that, “…SSNIT transfers to the National Health Insurance Levy and Energy Sector Levies (ESL), is expected to amount to GH¢14.4 billion.

     

    “Grants from Development Partners are projected at GH¢3.1 billion, equivalent to 1.1 percent of total revenue and grants. The expected disbursements from grants are entirely project-related to support key development initiatives in line with government priorities.”

     

    To this, total revenue and grants are projected to rise steadily, from 16.0 percent of GDP in 2025 to 16.8 percent in 2026, and to 16.9 percent by 2029.

     

    This growth will be driven by stronger tax administration, digitalisation of revenue systems,

     

    improved compliance, and the full rollout of the Unified Taxpayer Identification System. The focus will be on broadening the tax base, not burdening existing taxpayers.

     

    Revenue Measures

     

    On the revenue side, the minister indicated that government will deepen domestic resource

     

    mobilization through the implementation of the Medium-Term Revenue Strategy, thereby, improving tax compliance, expanding the tax base and deploying digital tools to track and tax e-commerce, cross-border transactions and the extractive sector.

     

    In addition, the Government will execute VAT reforms.

     

    “We will also tighten exemptions and enforce the payment of tax arrears, ensuring that all eligible entities pay their fair share.

     

    “These measures are expected to lift non-oil revenue to 15.7 percent of GDP in 2026 from a projected 15.1 percent of GDP in 2025.”

     

    By Adnan Adams Mohammed

  • 2026 Budget exposes the NPP’s eight years as a period of manufacturing excuses and exporting blame — Sinare slams

    2026 Budget exposes the NPP’s eight years as a period of manufacturing excuses and exporting blame — Sinare slams

    H.E Alhaji Said Sinare, Ghana’s Ambassador to Saudi Arabia and former National Vice Chairman of the ruling National Democratic Congress (NDC), has described the 2026 National Budget as a “national resurrection” while delivering a scathing critique of the opposition New Patriotic Party (NPP).

     

    In a fiery statement, the NDC Zongo President said the NPP’s reaction to the Budget revealed “intellectual poverty” and political confusion. “Their commentary was so shallow that even the Budget book itself would have wept if it had ears,” he said.

    According to him, the 2026 Budget, presented by the Minister of Finance, is a complete departure from the “chronic confusion and economic acrobatics” that defined the NPP’s eight years in power.

     

    Alhaji Sinare described the Budget as more than a financial plan, it is an “economic renaissance” and a “masterclass in governance.” He noted that while the previous administration treated Ghana as a “theatre of fiscal experiments,” the NDC government, led by a visionary President, has arrived with clarity, precision, and intellectual rigor.

     

    “The NPP spent years manufacturing excuses and exporting blame. Under their watch, Ghana became a spectator in global development, a nation begging for survival while drowning in reckless mismanagement. But today, the NDC has brought order to the chaos and planted a Budget that speaks productivity, innovation, social protection, and national dignity,” Alhaji Sinare said.

     

    He further stated that the 2026 Budget exposes the opposition completely. “The NPP is behaving like a political apprenticeship group shocked by the sudden return of competence. They are dancing around the Budget like confused masquerades, trying to manufacture criticisms that cannot stand under the sunlight of facts,” he said.

     

    Alhaji Sinare praised the Minister of Finance for delivering “with intellectual thunder” and the President for providing “leadership with administrative fire.” According to him, the NDC government’s Budget is a stabilizer for the nation, setting Ghana on a path of production, industrial rebirth, and social protection something the NPP never understood, let alone practiced, he added.

     

    Concluding his statement, Alhaji Sinare urged all Ghanaians to recognize the transformative nature of the Budget. “The NDC is not here to play. We are here to repair, rebuild, and reposition Ghana. And no amount of NPP lamentations can stop the rising tide,” he said.