Ministry of Finance officials, led by the Minister, Dr Cassiel Ato Forson, will this week continue the intense work they engaged in last week towards preparing a national budget for 2026.
The budget is expected to accommodate the key concerns and aspirations of a disparate plethora of stakeholders both local and international while presenting a workable blueprint for the completion of efforts towards the restoration of macroeconomic stability and the resumption of sustained growth.
The budget will be presented to Parliament in about a fortnight’s time although no specific date has yet been announced.
It was revealed last week by Deputy Finance Minister, Thomas Nyarko Ampem that the 2026 budget will build on very a very impressive macroeconomic performance for 2025 in which the economy is on course to achieve a primary balance surplus of 1.4% of GDP after incurring a deficit last year, an overall fiscal deficit of just 1.5%,(compared with 5.9% on cash basis an 4.8% on commitment basis in 2024) and a significant reduction in the public debt to 44.9% of GDP, down from 61.8% at the turn of the year.
The construction of the budget is turning out to be a veritable juggling act because of the various priorities set by various stakeholder groups.
Ghana’s government is preparing to table its 2026 fiscal year budget against the backdrop of ongoing fiscal consolidation, energy-sector arrears, and an IMF-supported reform programme that runs through to May 2026.
While formal details are yet to be revealed, officials have consistently signaled a package centered on revenue mobilization, disciplined spending, and structural reforms particularly in the energy and state-owned enterprise sectors aimed at locking in disinflation and stabilizing growth.
Stakeholders, however, are pressing for a different balance: tax relief to spur private-sector activity, faster arrears clearance, and targeted measures to ease the cost-of-living burden.
On the fiscal side, policymakers are expected to prioritize a primary surplus target consistent with IMF benchmarks, with revenue measures that broaden the tax base rather than hike headline rates.
Likely strategies include tighter enforcement of VAT and e-VAT systems, a continued clampdown on exemptions, and improved property rate collections through digital platforms. Selective excise adjustments on items such as alcohol, tobacco, and sugary drinks are also plausible, as are measures to strengthen customs valuation and reduce leakages at the ports.
Officials have also hinted at keeping a lid on the wage bill’s growth while protecting core social programs, including cash transfers and essential health and education spending.
Expenditure under the budget is expected to restrain goods-and-services outlays and prioritize capital spending with high multiplier effects, partly through Public Private Partnerships.
A critical pillar is the energy sector: further steps to resolve legacy arrears, enforce cash waterfall mechanisms, and align tariffs with cost-recovery to prevent the re-accumulation of debt.
Authorities are also likely to spotlight progress on domestic debt operations and external debt restructuring, framing 2026 financing around concessional inflows and a cautiously rebuilt domestic bond market.
However, on their own part, industry groups are asking for the removal of certain taxes and levies that complicate compliance and suppress margins, a review of the VAT structure to reduce cascading, relief on import duties to lower input costs, predictable power, prompt payment of government arrears to suppliers, and targeted incentives for export-oriented processing.
Labor unions are pressing for cost-of-living relief through upward adjustments to personal income tax thresholds to protect real wages, caution against new consumption taxes and predictable wage negotiations that reflect inflation through 2024.
.Financial markets want a credible path to a durable primary surplus, a concrete plan to prevent re-accumulation of energy arrears, and steady progress on debt restructuring and domestic financial market normalization.
To this end, as Finance Ministry officials crunch the numbers, they are also engaging in extensive stakeholder consultations with various business, labour and consumer groups in Ghana as well as the International Monetary Fund and other representatives of the country’s development partners.
Last week’s stakeholders’ consultations brought together representatives over two days, from banking and non-banking financial institutions, think tanks, professional bodies, trade organizations, social partners, and other organized groups.
Government is also engaged with the IMF because the three year Extended Credit Facility programme Ghana is undergoing does not expire until May next year and in the meantime the Fund’s Executive Board is yet to sign off on the 5th review for funds to be disbursed, and after that there is still a 6th and final review and subsequent funds disbursement on the schedule.
Given that the IMF programme for Ghana is not set to expire until mid 2026, it is likely that the government will still be under some influence from the IMF in terms of fiscal policy and budgetary priorities.
However, the extent of this influence will depend on the government’s willingness to comply with the IMF’s recommendations and the specific conditions set out in the program as it winds up.
The Minister for Finance is required under Section 21 of the Public Financial Management Act, 2016 (Act 921), to prepare the annual budget in consultation with relevant stakeholders.
By Toma Imirhe
