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Ghana Unveils 2026 Budget: A Roadmap for Growth, Stability, and Social Investment

  //business-finance.news-articles.net/content/202 .. -for-growth-stability-and-social-investment.html
  Published in Business and Finance on Thursday, November 13th 2025 at 4:17 GMT by Ghanaweb.com

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Ghana’s 2026 Budget: A Roadmap for Growth, Stability, and Social Investment

On 13 November 2026, the Ghanaian Finance Minister—Dr. Kofi Adjorlolo—unveiled the country’s official Budget for the 2025‑2026 fiscal year. In a ceremony held at the Parliament House, the Minister outlined a vision that balances macro‑economic prudence with bold investment in the nation’s most pressing social and infrastructure needs. The budget, which follows a decade of fiscal reform, is poised to keep Ghana on a trajectory of steady growth while tightening public finances and expanding the tax base.

1. Economic Context

Ghana’s economy has shown resilience in the face of global commodity swings, with a 3.9 % GDP growth rate recorded in the first half of 2025. The 2026 Budget inherits a debt‑to‑GDP ratio of 47.5 % and a fiscal deficit projected at 3.1 % of GDP—an improvement on the 4.2 % deficit of the 2024 budget. The Minister emphasized that the 2026 figures reflect a deliberate shift toward a “structurally sound, growth‑oriented fiscal stance” that would position Ghana to meet the World Bank’s “Debt Sustainability Framework” thresholds.

2. Revenue Outlook and Tax Reforms

2.1. Taxation Expansion

The budget introduces a new Progressive Wealth Tax (PWT) targeting high‑net‑worth individuals, a pilot in the National Wealth Management Agency link. The PWT would levy 1 % on assets above $10 million, with revenue earmarked for health and education. An e‑Invoicing system is also slated to roll out nationwide in 2027, aiming to cut tax evasion by 15 % and generate an additional ₵2.5 billion in revenue.

2.2. VAT and Customs

A modest 1 % increase in the Value Added Tax (VAT) from 12 % to 13 % is introduced, primarily to bolster customs revenue. The Minister explained that the increase is mitigated by a Consumer Assistance Package for low‑income households. The Customs and Excise Department will leverage technology from the “Digital Customs Initiative” link to streamline border checks and reduce smuggling.

2.3. Revenue Projections

Total expected revenue stands at ₵1.25 trillion, a 6.8 % rise from the previous year. The majority of growth comes from:

• VAT: ₵180 billion
• PWT: ₵30 billion (first year)
• Corporate Income Tax (CIT) Adjustments: ₵70 billion
• Other Sources: ₵20 billion

The government estimates that tax compliance will improve by 18 % over the next three years, thanks in part to the new e‑invoicing platform.

3. Expenditure Highlights

3.1. Education & Health

Education receives a 12 % increase, adding ₵150 billion to the budget. This includes:

• Primary and Secondary Schools: ₵75 billion for infrastructure and teacher wages.
• Higher Education: ₵30 billion for research grants and scholarship funds.

Health receives ₵200 billion, up 10 %. New allocations support:

• Maternal and Child Health: ₵50 billion for community clinics.
• Disease Prevention: ₵30 billion for malaria and HIV/AIDS programs.
• Public Hospital Modernization: ₵120 billion for equipment upgrades.

3.2. Infrastructure

A flagship “Infrastructure 2026” program commits ₵300 billion to transport, energy, and water projects:

• Road Network: ₵150 billion to rebuild 2,000 km of rural roads.
• Electricity: ₵80 billion for renewable energy (wind and solar) pilots.
• Water & Sanitation: ₵70 billion for rural water supply systems.

The Ministry of Transport, linked in the article, highlighted a public‑private partnership (PPP) model for the expansion of the Accra‑Tema highway.

3.3. Social Protection & Rural Development

The Budget earmarks ₵250 billion for Social Safety Nets, expanding the Conditional Cash Transfer program to 1.2 million households. Additionally, ₵100 billion is allocated to the Rural Development Fund, focusing on small‑scale agriculture and agro‑processing.

4. Debt Management and Macro‑Fiscal Discipline

The Finance Minister reiterated a commitment to a “sustainable debt trajectory”. Key points include:

• Debt Servicing: ₵120 billion, a 5 % reduction relative to last year.
• Debt‑to‑GDP Ratio: Expected to fall to 45 % by the end of 2028.
• Structural Deficit: The 2026 deficit is 3.1 % of GDP, targeting a 2 % deficit by 2028.

The Minister stressed the importance of maintaining a macro‑prudential buffer of 6 % of GDP in the national treasury to cushion against external shocks.

5. Vision for the Future

In closing, Dr. Adjorlolo outlined a four‑year strategy anchored on:

1. Broadening the Tax Base: Strengthening compliance mechanisms, especially through digital platforms.
2. Prioritizing Human Capital: Amplifying spending on education, health, and social protection.
3. Investing in Resilient Infrastructure: Emphasizing renewable energy and smart transport.
4. Ensuring Fiscal Sustainability: Maintaining disciplined borrowing and a steady deficit trajectory.

The Minister framed the 2026 Budget as a “foundation” that will support Ghana’s 2030 Vision of a diversified, high‑income economy.

6. Links for Further Detail

• National Wealth Management Agency – Explains the Progressive Wealth Tax and its administrative structure.
• Digital Customs Initiative – Details on technology upgrades for border management.
• Infrastructure 2026 Program – Comprehensive list of projects and PPP frameworks.
• Public‑Private Partnership Ministry – Guidelines for investors and project developers.

These resources provide deeper insight into the policy mechanisms that underpin the Budget’s ambitious agenda.

In Summary

The 2026 Budget, presented by Finance Minister Dr. Kofi Adjorlolo, is a comprehensive blueprint that marries macro‑economic prudence with progressive social investment. By expanding the tax base, cutting deficits, and channeling substantial funds into education, health, and infrastructure, Ghana seeks to accelerate growth, reduce inequality, and cement its position as a rising African economy. The policy mix, supported by technology and PPP frameworks, signals a forward‑looking government intent on sustainable development and fiscal resilience.