BY Daniel Bampoe
The National Democratic Congress, NDC, Government has unveiled an ambitious spending plan for 2026, projecting total expenditure to reach GH¢357 billion, marking one of the highest appropriations in the nation’s fiscal history.
The Minister for Finance, Cassiel Ato Forson announced the figure during the presentation of the 2026 Budget Statement and Economic Policy to Parliament on Thursday, November 13.
The planned expenditure, according to Dr. Forson, represents a 20 percent increase over the 2025 budget projection of GH¢251.7 billion.
It reflects government’s commitment to balancing fiscal consolidation with growth-oriented investments in infrastructure, education, health, and job creation under the 24-Hour Economy and Big Push Infrastructure Programme.
But no allocation was made for the 24-Hour economy raising concern among pundits.
Budget Built on Big Spending
Under the new budget, total expenditure on a commitment basis is programmed at GH¢302.5 billion, equivalent to 18.9 percent of the GDP. Of this amount, GH¢244.7 billion has been earmarked as primary expenditure, excluding interest payments.
A significant portion of the allocation—GH¢90.8 billion—will go toward compensation for public sector workers, including salaries, pensions, and social security contributions. The figure represents a 9 percent increase in base pay under the Single Spine Salary Structure.
The government has also set aside GH¢13.2 billion for goods and services, while GH¢63.6 billion will be transferred to other statutory funds such as the GETFund, National Health Insurance Fund (NHIF), and District Assemblies Common Fund (DACF).
Debt Payments And Interest Burden
Interest payments continue to weigh heavily on the national budget. In 2026, GH¢57.7 billion—representing 3.6 percent of GDP—has been allocated for debt servicing. Of this, GH¢50.1 billion will go to domestic creditors, while GH¢7.6 billion will service external debts.
Ato Forson noted that ongoing debt restructuring and liability management initiatives are expected to ease the interest burden in the medium term, though the figures underscore the continued dependence on borrowing to sustain expenditure.
Infrastructure and Growth Projects
Government plans to inject GH¢57.5 billion into capital expenditure (CAPEX), with GH¢45.5 billion expected to come from domestic sources and GH¢12 billion from external project loans and grants.
A significant share of the domestic capital spending—about GH¢30 billion—will finance projects under the Big Push Infrastructure Programme, aimed at stimulating economic growth, modernising transport systems, and creating jobs across all regions.
Ato Forson emphasized that these investments are not mere political gestures but part of a broader plan to “position Ghana for sustainable economic recovery after years of fiscal turbulence.”
Fiscal Discipline Amid Rising Costs
To counterbalance the massive spending, the government has outlined stringent expenditure control measures. These include cutting down non-essential spending on foreign travel, workshops, and vehicle purchases, while streamlining earmarked funds to support high-impact projects.
According to the Finance Minister, the Ghana Integrated Financial Management Information System (GIFMIS) and Electronic Procurement System (GHANEPS) will be fully deployed in 2026 to ensure value-for-money procurement, eliminate ghost names from the payroll, and tighten commitment controls across Ministries, Departments, and Agencies.
“Every cedi saved will be redirected to projects that create jobs and improve the quality of life for our people,” Dr. Forson said, stressing that fiscal discipline will remain central to the government’s spending philosophy.
Balancing Consolidation and Growth
Economists and opposition lawmakers, however, have expressed concern over the scale of government spending amid limited revenue mobilization.
Critics warn that while the budget promises economic expansion, it could also widen the fiscal deficit and put pressure on the cedi if domestic revenue targets are not met.
Government insists the 2026 Budget is “strategic and realistic,” balancing the need for fiscal consolidation with the urgency of investing in people and productive sectors.
