The Finance Minister, Dr Cassiel Ato Forson, on Thursday November 13, 2025 presented the 2026 budget statement and economic policy of the Government of Ghana for the 2026 financial year.
This was to fulfil the requirements of Articles 179 of the 1992 Constitution and Section 21 of the Public Financial Management Act, 2016 (Act 921). The budget articulated the aspirations of His Excellency, President John Dramani Mahama and the governing National Democratic Congress (NDC) to the good people of Ghana. The theme for the budget, Resetting for Growth, Jobs and Economic Transformation, reinforced the campaign promise the NDC made to Ghanaians prior to the 2024 elections, the result of which led to the massive defeat of the government of the New Patriotic Party (NPP).
While the 2026 budget opens a new chapter of renewed hope and optimism for a stable macroeconomic environment, it is only appropriate to commend the finance minister and his team for demonstrating honesty and sincerity when he presented the budget without seeking credibility from bible quotations nor requesting staff of the Ministry of Finance to line up to applaud him.
To mirror the leadership qualities of His Excellency the President, the finance minister showed seriousness to duty and public service throughout his presentation of the budget.
While 2025 is generally viewed as a transition year, macroeconomic fundamentals have improved significantly since Dr Cassiel Ato Forson assumed office. It is imperative to recognise that the superior performance of the 2025 budget relative to targets set under the IMF program could not be accidental as illustrated in the table below. The performance of the 2025 budget is undoubtedly the result of deliberate fiscal discipline and properly curated alignment between fiscal and monetary policy.
Government has complied with fiscal rules and showed commitment to minimize waste and inefficiencies. Debt restructuring and treatment has led to negative accumulation of public debt, reducing the debt to GDP ratio from 61.8% in December 2024 to 45% in October 2025. The sinking fund has been revived to serve as a buffer for debt repayment.
The trend of disinflation recorded during the period of 10 months exceeded the targets set under the IMF program, thereby further easing the policy rate. The period also witnessed stabilisation of the exchange rate and the Ghana Cedi has significantly appreciated in value against all major currencies.
In term of sectoral performance, the service sector continued to grow by 8.8% in H1 2025, buoyed by a 17.2% growth in ICT, 9.5 % in financial and insurance services, 6.7% in transport and storage and 14.9% in education.
In addition, agriculture performed satisfactorily by growing at 6% in H1 2025 as compared to the same period in 2024. The performance was as a result of 6.2 expansion in crops, 5.8% in livestock and 7.7% in fishing and aquaculture. Growth in the industry sub sector recorded 3.2%.
Table 1: Basic macroeconomic indicators – expected targets vrs outturn, 2025
Whereas Ghana’s economy may not be out of the woods yet, the economy has painfully transitioned from the doldrums of mismanagement and policy ineffectiveness, thanks to Dr. Ato Forson’s relentless fiscal consolidation. We are at a juncture where it is appropriate to expand the economy through smart investments in productive sectors, creation of decent jobs and enhanced factor productivity.
This is why the budget envisions major road and transport infrastructure, including expressways and bridges, reliable energy supply, climate-smart agriculture-led industrialization and investments in agro-processing value-chains.
While being under an IMF program presents opportunities to diligently comply with fiscal rules and restore confidence, Ghana’s satisfactory performance thus far should wet our appetite to implement crucial structural reforms. The passage of a Value for Money Bill is expected to strengthen the legal framework for Public Financial Management (PFM) and institutionalise efficient expenditure management, fiscal discipline and minimise the accumulation of arrears. The new whole of government approach to commitment control must be digitised, embraced and supported by every Ghanaian with the aim of eliminating waste in the utilisation and management of public funds.
The beauty of the 2026 budget is arguably its resonance with the manifesto of the NDC. Fidelity to the NDC manifesto is shown in the way in which it is woven into the 2026 budget. Carefully selected bold initiatives captured in the budget confirm the deliberate awareness of serving the good people of Ghana and to reset the economy through Growth, Jobs and Economic Transformation.
In pursuit of the social democratic ideals of the governing party, the fiscal policies contained in the 2026 budget are deliberately pro-poor.
Not only is the COVID-19 levy abolished, the budget does not overburden the tax payer with new taxes. What is seen is a fundamental transformation of the Value Added Tax (VAT) regime, by not only reducing the rate from 21.9% to 20% but also, abolishing VAT on reconnaissance and prospecting of minerals to revive investor confidence and stimulate greenfield exploration.
To reward compliance, the budget introduces a VAT Reward Scheme to encourage tax payers to demand VAT receipts to support the attainment of enforcement objectives.
In addition, we see a strong allocation to social protection and pro-poor expenditure on capitation grant, school feeding, free sanitary pads and cash transfers to support vulnerable people under the LEAP program. The budget is also gender responsive based on its aspiration for female oriented initiatives such as the Women’s Bank, the construction of 24-hour economy markets across the 261 Metropolitan, Municipal and District Assemblies (MMDAs), provision of a lifeline through MahamaCares for people battling with chronic diseases and creation of decent jobs through the National Apprenticeship Programme, ‘Adwumawura’. Indeed, special infrastructure projects under the Big-Push and the 24Hour Economy and Accelerated Export Development Programme will cumulatively create not less than 2 million direct and indirect jobs for men and women.
Back to Basic: prioritizing PFM Diagnostics
Even though strengthening commitment controls through the establishment of an independent fiscal council to monitor enforcement of fiscal rules, setting up a value for money office, enforcement of commencement authorisation and full activation of the PFM compliance desk at the MoF are strategic measures to ensure budget credibility, certain inherent risks to the effective implementation of the 2026 budget persists until we address the fundamental problems of our PFM system.
It is widely acknowledged that a scientific approach to addressing PFM weaknesses is through data driven diagnosis of PFM systems at the national and sub-national levels. Even though the Ghana Integrated Financial Management and Information System (GIFMIS) is operational across Ministries, Departments and Agencies, a PFM health-check will reveal loopholes and limitations in the robustness of our PFM processes that pose persistent risks to the credibility of our annual budgets. The recurrence of financial irregularities in the Auditor General’s report suggests that internal controls are not strong enough to prevent audit infractions, in part due to deliberate machinations of public officials.
The finance minister has hinted his readiness to reset Ghana’s PFM system by eliminating waste, institutionalising fiscal discipline and prioritizing expenditures that are either unavoidably essential or have transformational impact. It is indisputable that while the Minister may have the full support of the President and the Government to steer the economy towards stability, any attempt to reset the PFM system should be informed by time-tested methodologies. Through our cooperation with development partners, a wide range of PFM diagnostics such as the World Banks’ Public Expenditure and Financial Accountability (PEFA) framework, Public Expenditure Reviews (PERs), Public Expenditure Tracking Surveys (PETS); the IMF’s Fiscal Transparency Evaluation (FTE), Public Investment Management Assessment (PIMA) and the Tax Administration Diagnostic Assessment Tool (TADAT); IBP’s Open Budget Surveys and the OECD’s Methodology for Assessing Procurement Systems (MAPS), when effectively deployed, will guide the choice of reform to reset our PFM system.
Conclusion
The 2026 budget is carefully formulated to serve the good people of Ghana. It is well curated to rebuild trust as it prepares the economy for a take-off. The resilience of the economy has been tested through the painful endurance and sacrifices of citizens, households and businesses throughout the turbulent period the economy was mismanaged by the previous administration. With the strong leadership of the finance minister, demonstrated by his audit and verification of arrears, introduction and enforcement of commitment authorization, the economy of Ghana is back on track.
Fiscal consolidation, prudent expenditure management and strict compliance to fiscal rules have contributed immensely to economic recovery and restoration of macroeconomic stability. Resumption of confidence supported by favorable ratings by rating agencies could be sustained if the PFM system is made a priority under the government’s reset agenda.
While public opinion on the satisfaction with the 2026 budget appears to be high, this is arguably the best time to reset the mindset of persons entrusted with public funds.
While the establishment of the Value for Money Office (VfMO) and the Conduct of Public Officers Bill are initiatives exclusive to the 2026 Budget, it remains crucial to tackle potential and real risks to effective implementation of the 2026 budget.
Beyond publishing the budget in major local languages, non-state actors such as CSOs traditional authorities, and religious leaders should support the reset of the economy as a civic duty to contribute towards building the Ghana we want.
By: Dr. Hamza Bukari Zakaria Economic Policy Advisor to the Vice President
hzakaria@presidency.gov.gh
