Ghana’s 2026 Budget signals a firm push toward tighter fiscal discipline and a friendlier climate for businesses, with government positioning the new fiscal year as the phase where macroeconomic stability achieved in 2025 will be converted into real economic gains.
Finance minister Dr Cassiel Ato Forson, presenting the statement to Parliament, framed the budget as a continuation of the country’s fiscal recovery. He said 2026 would focus on sustaining stability, accelerating transformation and expanding opportunities for jobs and investment. According to him, the gains made over the past year must now translate into better living standards, as government targets a primary surplus of 1.5% of GDP and commits to maintaining single-digit inflation and exchange-rate stability.
The improvement recorded in 2025 set the foundation for this approach. The primary balance moved from a 3% deficit in 2024 to a 1.6% surplus by September 2025, driven by spending controls, stronger revenue mobilisation and lower Treasury bill rates, which saved about GH¢8.8 billion in interest payments. Non-oil tax revenue increased to 8.7% of GDP from 7.8%, while public debt dropped sharply from GH¢726.7 billion in 2024 to GH¢630.2 billion by October 2025; one of the steepest debt reductions in Ghana’s recent history.
The stronger macro outlook boosted market confidence. Treasury yields declined by more than 1,600 basis points, with the 91-day bill falling to its lowest point in 14 years. Government also cleared GH¢20.3 billion in bond coupons, helping restore liquidity. Eurobond prices improved, yields fell by about 300 basis points, and Ghana secured rating upgrades from Fitch, Moody’s and S&P on account of strengthened policy credibility and a clearer path to debt sustainability.
A major plank of the 2026 plan is comprehensive revenue and tax reform. Government expects non-oil revenue to rise to 15.7% of GDP, supported by digital tools, stronger enforcement and greater compliance. VAT reforms include scrapping the COVID-19 levy, reducing the effective VAT rate, increasing the registration threshold from GH¢200,000 to GH¢750,000, and extending zero-rating on local textiles to 2028. These measures are projected to give back about GH¢5.7 billion to businesses and households. The removal of the COVID-19 levy alone accounts for GH¢3.7 billion of that relief.
Government will also undertake a full review of the Income Tax Act, Customs Act and Excise Duty Act to align with global standards. The review aims to simplify tax obligations, tighten loopholes and ensure fair taxation of multinational and digital businesses. The Customs Act update will focus on improving efficiency at borders, while excise reforms will reflect international trends targeting carbon-intensive and unhealthy products.
To curb leakages at the ports, artificial-intelligence-based pre-arrival inspection systems will be deployed to detect under-invoicing and misclassification, longstanding causes of revenue losses. In 2024, imports worth GH¢204 billion were recorded, yet only GH¢85 billion was classified as taxable, highlighting the weakness the reforms seek to address.
Expenditure measures will prioritise value for money. Government plans to rationalise spending by cutting low-impact programmes and capping costs such as foreign travel, workshops and vehicle purchases. Savings will be shifted into infrastructure, agriculture, energy and education. Flagship initiatives such as the 24-Hour Economy and the Big Push infrastructure programme will receive priority as part of efforts to expand production capacity and attract investment.
Social protection remains intact, with funding maintained for LEAP, NHIS, the School Feeding Programme and free senior high school. Spending oversight will tighten further through the integration of GHANEPS with GIFMIS, quarterly expenditure reviews, real-time audits and ongoing payroll validation to remove ghost names.
Dr Forson told Parliament that fiscal discipline must be seen as a vehicle for long-term progress: a bridge between restoring confidence and securing genuine improvements in people’s lives.
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