Unpacking The 2026 Budget:- The Perspective of A Citizen- Evans Naa Gandiibu

  The 2026 budget will go down in history as a budget that resonates the Ghanaian citizens.

  It gives an economic transformational feeling and deepens the faith of many in the John Dramani Mahama government in delivery its promises (Building the Ghana We Want).

   *Revenue* 

Revenue generating has been a headache for past governments. Government largely relies on tax and borrowing many a times in generating revenue. Government in 2026 has projected Ghc 286.1 billion consisting of tax Ghc 216.2 billion. In the same year where government has abolished COVID 19 tax, reformed VAT, increased VAT threshold from Ghc 200,000 to Ghc 750,000 annual turn over and many more. Government has reformed taxes examined to be burdensome on citizens which are COVID 19 levy in 2026 which brings in Ghc 3.7 billion. This means government is given Ghc 3.7 billion back to Ghanaians. Are you not surprised? In a country where tax revenue constitutes major part of total revenue, government is abolishing taxes and reducing some. The magic is on fiscal consolidation and tax compliance, strategical exemption policy etc 

Tax exemption has since  become a problem for governments on the importance to some businesses ( Foreign Direct Investment,FDI) in area of interest to the economy.

 Value Added Tax (VAT) will be enforced to reflect its purpose. Hence, GETFund (2.5%) and NHIL (2.5%) which were attached from VAT rate to be applied directly to goods and services will be added to VAT rate and apply as such. This will reduce the amount of taxes citizens pay and the the number of taxes on goods and services.

   Small businesses, has a breathing space in 2026 and beyond to operate without withholding VAT. Government has increased annual turn over (Profit) of businesses to be caught on the VAT web from Ghc 200,000 to Ghc 750,000. VAT restructuring alone gives back Ghc 5.7 billion to individuals and businesses to cushion their activities.

  Other revenue strategies are; closure of revenue leakages at port by looking at the issues in classification, valuation and cargo inspection. Closely monitoring of foreign tax cooperation, relook at custom tax to add most of the existing exercise tax in one platform to make it clearly and simpler for implementation. 

   *Expenditure* 

Government has  shown commitment to its budget for the year 2025 and has an intention of staying financially discipline. Hence, priority areas of expenditure in 2026 as roads, energy and education aside the legacy programmes and projects. 

  Government intends to ensure every cedis spent is not wasted but also accounted for. Government will set up Value for Money Office (VfMO) to monitor every project and programme on the amount spent and time used to ensure judicious used of scare resources. This is the first of its kind under the fourth Republic. The offi will augment the audit services( internal and external) to deliver and prevent wastage.

   Procurement Act 2003(Act 663)  will be reviewed to reflect current inflation and value of currency. This will allow entity heads a room to approve certain projects or goods and services after going through the necessary processes required without concurrent approved at the top. Purchasing power limit will be increased for entity heads. This will fast track projects and programmes execution within a needed time.

    Government intends to allocate part of the petroleum funds will be invested in Ghana's local  market i.e, energy infrastructure. This will ensure stable power to small scale businesses and industries to increase productivity. The power sector in a profitable area which needs greater investment. The chain of supply of reliable power will be face lifted from the production point to distribution end (VRA, IPP, GRIDCo, ECG and NEDCo).

   Government public debt management has been problematic over the years. Largely, foreign debts increase due to cedis depreciation. Government has since stablised the cedi and it has appreciated at 37% as at October 2025. This helps reduce public debt from Ghc 726.7 billion to Ghc 630.2 billion as at October 2025 a decline of 13.3%.

  We will recalled how the Nana Addo Bawumia government wickedly swindled citizens' invested idle funds on government bonds (DDEP). We have learnt in many cycles that, government's  financial instruments are the safest investment and risk free yet, government due to reckless spending and wastage could not honor these poor citizens' investments when it was due.  The government of John Dramani Mahama has shown commitment in paying and has further restructured payments model going forward to prevent borrowing spree and also reduce rollover risk. It will additionally create room  for fiscal investment in productive areas.

  Metropolitan, Municipal and District Assemblies (MMDAs) as usual will be have the free field to spend their common fund with discretions. It is restricted with a formula to ensure prudence use of the funds and consistency. 

    Government over the years under Hon. Seth Emmanuel Terkpe(Financially adviser )and Hon. Stop Forson ( Minister for Finance and Economic planning) have introduced strategic debt settling engineering model (Sinking fund). This creates buffer for the amount borrowed to be settled without stress. This makes the country credit worthy and reduces pressure on future budgets.

   *Legacy Projects/Programmes*

  Government has carefully curved out projects and programmes that fuels economic growth and development.

-Big Push ($ 10 billion)

-Adumawure (Ghc 160 million) to build young enterprinuers 

-Farmer Service Centers  ( to increase food production?

-24 hr economy ( an economic productivity 24/7)

-Youth employment 

-Ghana Medical trust fund

-No fees stress( for first students at university)

-National Apprenticeship programme (Ghc 170 million) for technical and vocational skills development.

-NAIMOS (Galamsey fight) Ghc 150 million.

   These social interventions policies are turn arounds of the economy growth at various sectors of the economy aside the individual ministries, Departments and Agencies (MDA) allocations for their core mandates.

     *Economic Performance Key Indicators*

   Remember the exchange rate "You can do all the propaganda in the economy but the exchange rate will expose you". Exchange rate in Ghana 2025 has appreciated by 37% as against the US dollar as at October 2025. This makes it the best in Africa in terms of currency performance.Kudos to the ministry of finance and the Bank of Ghana. Wonder cedis at 60yrs it is still on its feet. Ghana exchange rate in 2024 ( 1USD=14.70) vrs 2025 (1USD=10.97).

   Inflation as in 2024( 23.5%) as against 2025 (8%) . Isn't it commendable that in the space of 10 months, the inflation has dropped from 23.5% to 8%?

   Gross international reserve has since doubled from $ 6.8 billion in 2024  to $ 12 billion as at October 2025.( Cocoa , Oli,Goldbod etc)

  Public debt stood at Ghc 726.7 billion in 2024 and has since been reduced Ghc 630.2 billion in 2025 ( cedi appreciation).

Fiscal deficit of 4.2% to GDP in 2024 as against 3.1% of GDP end of December 2025.

  Government needs commendation on the successes choked this far. All these are anchored on fiscal discipline(Fiscal and Monetary).

 *Source:* Budget 2026

  Evans Gandiibu