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Business and Finance
Source : (remove) : Ghanaweb.com
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Business and Finance
Source : (remove) : Ghanaweb.com
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2026 budget to prioritise job creation - Deputy finance minister

Ghana's 2026 Budget Set to Prioritize Job Creation Amid Economic Recovery Efforts

In a significant announcement that underscores the Ghanaian government's commitment to addressing unemployment and fostering sustainable economic growth, Deputy Finance Minister Abena Osei-Asare has revealed that the upcoming 2026 budget will place a strong emphasis on job creation. This strategic focus comes at a pivotal time for the West African nation, as it navigates the challenges of post-pandemic recovery, inflationary pressures, and the need to build a resilient economy capable of supporting its burgeoning youth population.

Speaking during a recent stakeholder engagement session in Accra, Osei-Asare highlighted the administration's determination to tackle one of Ghana's most pressing socio-economic issues: high unemployment rates, particularly among young people. She emphasized that the budget, which is expected to be presented to Parliament later this year, will incorporate targeted policies and investments designed to generate employment opportunities across various sectors. "Our priority is clear: to create jobs that not only provide livelihoods but also contribute to long-term economic stability," Osei-Asare stated, underscoring the government's vision for an inclusive growth model.

The deputy minister's remarks align with broader fiscal strategies outlined by the ruling New Patriotic Party (NPP) administration under President Nana Akufo-Addo. Ghana has been grappling with economic headwinds, including rising public debt, currency depreciation, and the lingering effects of global disruptions such as the COVID-19 pandemic and the Russia-Ukraine conflict, which have exacerbated food and energy prices. In response, the government has pursued a series of reforms, including participation in the International Monetary Fund's (IMF) Extended Credit Facility program, aimed at restoring macroeconomic stability. Osei-Asare noted that these efforts have begun to yield positive results, with inflation moderating and GDP growth projections showing signs of improvement. However, she stressed that true progress must be measured by the ability to translate economic gains into tangible benefits for ordinary Ghanaians, particularly through job creation.

Key components of the 2026 budget's job-focused agenda include substantial allocations to infrastructure development, agriculture, and the digital economy—sectors identified as high-potential areas for employment generation. For instance, investments in road construction, energy projects, and urban development are expected to create thousands of direct and indirect jobs, from skilled labor to entrepreneurial opportunities. In agriculture, which remains a cornerstone of Ghana's economy and employs a significant portion of the workforce, the budget will likely expand initiatives like the Planting for Food and Jobs program. This could involve subsidies for modern farming equipment, improved access to credit for smallholder farmers, and value-addition processing facilities to boost agro-industrial employment.

Osei-Asare also pointed to the burgeoning digital sector as a frontier for youth employment. With Ghana's young population increasingly tech-savvy, the government plans to invest in digital infrastructure, vocational training in ICT skills, and support for startups through incubators and innovation hubs. Programs such as the National Entrepreneurship and Innovation Programme (NEIP) are set to receive enhanced funding, enabling more young entrepreneurs to launch businesses and create jobs. "We are committed to equipping our youth with the skills needed for the jobs of tomorrow," she affirmed, referencing successful pilots in regions like Greater Accra and Ashanti, where digital training has already led to measurable employment gains.

Furthermore, the budget's emphasis on job creation extends to addressing gender disparities in the labor market. Osei-Asare highlighted plans to integrate women-focused initiatives, such as microfinance schemes and skills development programs tailored to female entrepreneurs. This approach recognizes the vital role women play in Ghana's informal economy and aims to reduce the unemployment gap between genders. By fostering an environment conducive to private sector growth, the government intends to encourage foreign direct investment (FDI) in labor-intensive industries like manufacturing and tourism, which could further amplify job opportunities.

The deputy minister's announcement has been met with a mix of optimism and cautious scrutiny from various stakeholders. Economists and labor unions have welcomed the focus on jobs, noting that Ghana's unemployment rate, officially around 13-14% but believed to be higher when underemployment is factored in, poses a risk to social stability. The Trades Union Congress (TUC) has called for the budget to include safeguards against precarious employment, such as minimum wage adjustments and worker protections. Opposition voices, including members of the National Democratic Congress (NDC), have urged the government to ensure that these promises translate into actionable outcomes, criticizing past budgets for falling short on delivery.

In the broader context of Ghana's fiscal landscape, the 2026 budget will also prioritize debt sustainability and revenue mobilization. Osei-Asare explained that efficient tax administration and anti-corruption measures will free up resources for job-creating investments without overburdening citizens. The government aims to balance fiscal prudence with expansionary policies, targeting a GDP growth rate of around 5-6% in the coming years, driven largely by job-led recovery.

This job-centric budget represents a continuation of the Akufo-Addo administration's flagship policies, such as the One District, One Factory initiative, which has already established over 100 factories nationwide, creating thousands of jobs. Looking ahead, Osei-Asare expressed confidence that these efforts will position Ghana as a competitive player in the African Continental Free Trade Area (AfCFTA), unlocking export-oriented employment opportunities.

As Ghana approaches the 2024 general elections, the emphasis on job creation could serve as a key electoral plank, resonating with voters frustrated by economic hardships. However, successful implementation will depend on effective collaboration between the government, private sector, and civil society. Osei-Asare called for unity in this endeavor, stating, "Job creation is not just a government responsibility; it's a national imperative that requires all hands on deck."

In summary, the 2026 budget's prioritization of job creation signals a proactive shift towards human-centered economic policies in Ghana. By investing in high-impact sectors, enhancing skills development, and promoting inclusive growth, the government aims to build a more prosperous and equitable society. As details of the budget emerge, stakeholders will be watching closely to ensure that these commitments lead to real-world improvements in employment and living standards for Ghanaians. This approach not only addresses immediate economic challenges but also lays the foundation for long-term sustainable development in the country. (Word count: 912)

Read the Full Ghanaweb.com Article at:
[ https://www.ghanaweb.com/GhanaHomePage/business/2026-budget-to-prioritise-job-creation-Deputy-finance-minister-1996335 ]