Ghana’s proposed spending plan for next year reflects a fundamental change in how government intends to use the country’s renewed economic stability, according to analysis from professional services firm KPMG.
After experiencing significant financial turbulence over the past two years, the administration is now positioning the budget to translate recovered stability into tangible improvements for households and businesses. The analysis suggests this marks a departure from emergency response mode toward deliberate investment in living standards.
Economic indicators show measurable progress, with inflation declining from 24 percent last year to 9.4 percent by September, while the cedi has strengthened by 37 percent against the dollar as of mid-October. The International Monetary Fund attributes much of the inflation improvement to exchange rate stability, noting how currency movements significantly influence price levels across African economies.
The fiscal framework outlined in the budget demonstrates commitment to sustained discipline. Government aims to achieve a primary surplus of 1.5 percent of gross domestic product on a commitment basis, aligning with the country’s fiscal responsibility framework. This target represents a critical signal following debt restructuring and fiscal challenges experienced in the previous year.
KPMG’s assessment emphasizes how policy interventions now directly target areas affecting ordinary citizens. The analysis points to several strategic focuses including agricultural development to reduce food costs and generate employment, energy infrastructure improvements to lower production expenses for businesses, and transportation projects to connect communities with economic opportunities.
The 24-Hour Economy initiative features prominently in agricultural planning, with government establishing processing zones that will operate continuously to handle cocoa, rice, palm oil, and cassava into finished products. These facilities will utilize modern equipment, cold storage, and renewable power systems. The broader program carries an estimated cost of four billion dollars initially, with government committing 300 million as seed capital and the remainder mobilized through public-private arrangements.
Revenue projections show government targeting 268.1 billion cedis in total collections, representing an 18.3 percent increase over the previous year’s figure of 226.7 billion. Non-oil tax revenue will provide the largest contribution at 216.1 billion cedis, supported by compliance improvements and enforcement measures.
KPMG connects Ghana’s budget to broader continental efforts to mobilize domestic resources for economic transformation rather than depending on external emergency support. The firm concludes that maintaining focus and discipline could enable the country to both preserve stability gains and generate meaningful improvements in citizens’ daily economic experiences.
Source: newsghana.com.gh
