Government Targets Stability and Job Creation in 2026 Budget

Ato Forson Says Ghana Entering “Next Phase of National Renewal”

The government has outlined a 2026 budget focused on sustaining the macroeconomic stability achieved in 2025 while accelerating job creation, economic transformation, and social development.

Presenting the budget to Parliament, Finance Minister Dr. Cassiel Ato Forson said Ghana has entered a new phase of recovery, with stability now serving as the foundation for growth.

“Our choices in 2025 restored stability and rebuilt trust. The task before us now is to translate that stability into real progress,” he said.

Fiscal Gains Strengthen Confidence

The minister highlighted Ghana’s strong fiscal turnaround in 2025, where the primary balance shifted from a 3% deficit in 2024 to a 1.6% surplus by September 2025.
Public debt also declined sharply to GH¢630.2 billion, supported by improved revenue mobilisation and tighter spending controls.

Treasury yields dropped to their lowest levels in 14 years, and international rating agencies upgraded Ghana’s outlook, citing renewed policy credibility.

Tax Reforms to Boost Business Growth

A key feature of the 2026 budget is tax reform aimed at easing the cost of doing business. Measures include:

• Abolition of the COVID-19 Levy

• Reduction of the effective VAT rate to 20%

• Raising VAT registration threshold to GH¢750,000

• Zero-rating for local textiles extended to 2028

These reforms are expected to return GH¢5.7 billion to businesses and households.

Digitalisation and Port Reforms

The Ghana Revenue Authority will deploy digital tools, including fiscal electronic devices and systems to track e-commerce VAT.
AI-driven inspection technology will be introduced at the ports to reduce under-invoicing and revenue leakage.

Targeted Spending and Social Protection

Government will restrict non-essential spending such as foreign travel and vehicle purchases, redirecting funds toward infrastructure, agriculture, education, and the 24-Hour Economy initiative.

Social programmes including LEAP, Free SHS, NHIS, and School Feeding will be fully maintained.

“Fiscal discipline remains our anchor,” Dr. Forson said. “It is essential for converting recovery into improved living standards.”