The Minister for Finance, Dr Cassiel Ato Forson, has announced that the Government of Ghana aims to reduce the country’s fiscal deficit sharply from 2.8% of GDP in 2025 to 2% in 2026, as part of a broader strategy to restore fiscal discipline and sustain economic growth.
Presenting the 2026 Budget Statement and Economic Policy in Parliament on Wednesday, Dr Forson said the government remains committed to expanding the tax net rather than increasing the burden on existing taxpayers.
“Our focus is on expanding the tax net, not overburdening existing taxpayers,” he emphasized.
Key Fiscal Targets and Revenue Measures
According to Dr Forson, government expenditure will remain tightly managed, rising modestly from 15% of GDP in 2025 to 15.4% in 2026. This controlled spending framework forms part of efforts to ensure fiscal consolidation while maintaining sufficient resources for critical development priorities.
The Minister revealed that the government is targeting a primary shortfall of 1.5% of GDP in 2026, in line with Ghana’s fiscal responsibility anchor. On a commitment basis, the overall fiscal deficit is projected at 2.2% of GDP, while on a cash basis, it is expected to reach 4% of GDP.
“This fiscal stance balances consolidation with growth, maintaining discipline while safeguarding resources for productive investment under the Big Push Infrastructure Programme and other national priorities,” Dr Forson stated.
Big Push Infrastructure Programme to Drive Growth
A major highlight of the 2026 Budget is the continuation of the Big Push Infrastructure Programme, a flagship initiative designed to stimulate job creation and accelerate economic recovery through large-scale investments.
The programme focuses on key sectors including:
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Roads and transportation infrastructure
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Health and education facilities
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Energy and renewable power development
These projects are expected to spur economic activity, strengthen local industries, and promote inclusive growth across regions.
Maintaining Fiscal Stability Under the Mahama Administration
The 2026 budget presentation marks the first under President John Dramani Mahama’s administration, which has pledged to restore macroeconomic stability, rebuild investor confidence, and ensure inclusive development following years of economic turbulence.
Dr Forson noted that fiscal discipline remains a cornerstone of the government’s strategy, balancing debt reduction efforts with investments that directly benefit citizens and businesses.
The administration’s approach seeks to align fiscal consolidation with its growth agenda, ensuring that economic reforms translate into real improvements in livelihoods.
FAQs on Ghana’s 2026 Fiscal Plan
1. What is Ghana’s fiscal deficit target for 2026?
The government aims to reduce the deficit from 2.8% of GDP in 2025 to 2% in 2026.
2. How will the government raise revenue without overtaxing citizens?
By expanding the tax base through improved compliance, digitalisation, and inclusion of the informal sector.
3. What is the Big Push Infrastructure Programme?
A government initiative to invest in roads, health, education, and energy infrastructure to support job creation and economic growth.
4. Who presented the 2026 Budget?
The Budget was presented by Finance Minister Dr Cassiel Ato Forson in Parliament.
5. What is the Mahama administration’s main economic goal?
To consolidate fiscal stability while ensuring sustainable and inclusive economic growth.
