Finance Minister Dr. Cassiel Ato Forson is set to present Ghana’s 2026 Budget Statement and Economic Policy to Parliament on November 13, carrying the weight of a nation caught between maintaining hard-won economic stability and making bold choices that could shape the country’s growth trajectory for years to come.
The proposed date, which is subject to parliamentary approval, will mark the government’s first major budget presentation since winning the 2024 elections and having nearly nine months to steer the economy. Under the Public Financial Management Act, the Finance Minister is required to present the national budget to Parliament no later than November 15 each year.
While the 2025 Budget largely operated within the framework established by the previous administration, the 2026 Budget is expected to bear the full imprint of the President Mahama-led government’s economic policies as Ghana prepares to exit the International Monetary Fund bailout programme in May 2026. This transition makes the upcoming budget one of the most significant economic policy documents in recent years.
The Finance Ministry has reportedly completed several rounds of stakeholder engagements and industry consultations to finalize policies and programmes that will feature in the budget. Sources suggest the consultations centered on industrial policy, job creation, and private sector competitiveness, signaling a potential shift from stabilization toward transformation.
One of the clearest and most controversial voices ahead of the budget belongs to John Awuah, Chief Executive Officer of the Ghana Association of Banks. He’s urging the Finance Minister to “bite the bitter bullet” and make difficult but economically sound decisions by scrapping or reforming what he describes as “feel-good but fiscally draining programmes.”
Awuah has proposed eliminating or restructuring four major social intervention programmes to free up an estimated GH₵1.7 billion annually. His breakdown includes canceling the Free First Year Tertiary Education policy, which could save approximately GH₵450 million; scrapping trainee nurses allowances worth about GH₵480 million yearly; removing teacher trainee allowances that cost around GH₵210 million; and reviewing the Free Senior High School policy to exclude wealthier beneficiaries, potentially saving GH₵600 million.
The banking executive argues that these savings could be rechanneled into supporting 10 to 20 local manufacturing firms with concessionary loans at five percent interest to expand production of import substitutes like tiles, detergents, pharmaceuticals, and basic food items. “Please be bold and take some difficult decisions,” Awuah said in his advice to the Finance Minister.
However, the challenge for Dr. Ato Forson is that the very programmes Awuah wants scrapped are politically sensitive and seen as lifelines for many Ghanaian families. Free SHS, teacher and nurse trainee allowances, and free tertiary education remain extremely popular with voters, and any attempt to scale them back could trigger significant political backlash.
The government already faces pressure over these programmes. In March 2025, it uncapped the Ghana Education Trust Fund to provide full funding for the Free SHS programme, allocating GH₵3.5 billion. The 2025 budget also earmarked GH₵203 million for teacher trainee allowances and GH₵480 million for nursing trainee allowances.
Yet economic realities remain harsh. Though inflation has finally eased into single digits at 9.4 percent and the cedi has steadied with over 20 percent appreciation year-to-date through August, the budget deficit remains tight and public debt continues to loom large over fiscal planning.
Dr. Forson is expected to introduce several tax reforms aimed at easing the burden on businesses and households. According to Ghana Revenue Authority Commissioner-General Anthony Sarpong, the 2026 Budget will include a review of the Value Added Tax, with the effective rate expected to be reduced from 22 percent to 20 percent as part of ongoing reforms to simplify the VAT structure and make it more business friendly.
Additionally, the Finance Minister is expected to review several tax levies, including the COVID-19 levy, which he announced in July 2025 would be abolished by 2026 along with the National Health Insurance Scheme levy. These reforms are part of efforts to eliminate punitive and cascading effects within the VAT framework.
Dr. Forson has indicated in earlier interviews that the 2026 Budget will focus on job creation and economic growth stimulation. The government is finalizing a new Oil Palm Plantation Policy for inclusion in the budget, part of a broader plan to make agriculture a key source of jobs and growth. The Finance Minister believes the oil palm initiative alone could create over 500,000 jobs across the value chain from cultivation to manufacturing and exports.
With Ghana set to exit the IMF programme in May 2026, attention will also be on how the Finance Minister plans to manage the economy in the post-programme period. The country faces substantial debt servicing obligations, including GH₵15 billion in 2026 and GH₵53 billion in 2027 as part of the domestic debt restructuring process.
Another key area of interest for industry players and economists will be how Dr. Ato Forson intends to manage the fiscal deficit and expenditure in 2026 while maintaining macroeconomic stability. The Finance Minister has pledged to raise Ghana’s tax revenue to GDP ratio from 13.8 percent to 16 percent, emphasizing improved compliance rather than new taxes.
Early indications suggest the 2026 Budget will continue the government’s cautious path of fiscal consolidation, focusing on revenue mobilization, debt restructuring, and controlled spending. But there’s growing pressure from both within and outside the economic community for the government to move beyond stabilization and into transformation.
The tension between social compassion and fiscal discipline will define this budget. Ghana’s recovery from years of fiscal strain, external shocks, and debt distress has been real but fragile. The question facing Dr. Ato Forson is whether he can balance the need to protect vulnerable citizens through social programmes with the equally urgent need to build a productive economy capable of generating sustainable growth and employment.
Awuah praised the Finance Minister for what he described as a strong start in office but emphasized the need for continued fiscal consolidation. He urged the government to curb wasteful spending and work aggressively on corrupt procurement practices, acknowledging that his suggestions may be politically unpopular but are economically necessary.
Whether the government will adopt proposals like Awuah’s in the 2026 Budget remains to be seen. Some observers believe this is the moment for Dr. Ato Forson to be bold in the name of Ghana’s long term health, while others caution that dismantling social programmes could undermine the government’s political capital and harm vulnerable populations who depend on these interventions.
As November 13 approaches, all eyes will be on how the Finance Minister navigates these competing pressures. The 2026 Budget will test whether Ghana can transition from recovery to real, sustainable growth, and whether its leaders have the courage to make difficult choices that may be unpopular today but necessary for the country’s economic future.
Source: newsghana.com.gh
