10 Key Highlights from Ghana’s 2026 Mid-Year Budget Review Read by Finance Minister Dr Ato Forson
- Finance Minister Dr Cassiel Ato Forson presented the mid-year budget review in Parliament on Thursday, July 23, 2026
- Ghana's real GDP grew 6.4% in Q1 2026, surpassing the 4.8% full-year floor, while headline inflation fell from 13.7% to 5.3%
- The government introduced no new taxes and sought no additional appropriations, yet non-oil tax revenue ros e to 13.1% of GDP
Finance Minister Dr Cassiel Ato Forson presented Ghana's mid-year budget review to Parliament on Thursday, July 23, 2026, outlining a broad picture of macroeconomic recovery across fiscal, monetary and infrastructure fronts.
The highlights below reflect the views of Dr Theo Acheampong, a technical adviser to the Ministry of Finance.
Source: Facebook
1. No supplementary budget, no new taxes
Government announced that it would not seek additional appropriations, with total expenditure remaining unchanged.
Spending would instead be strategically realigned within the existing budget framework. Despite abolishing the E-Levy, Betting Tax, COVID-19 Levy, Emissions Levy and VAT on motor insurance, non-oil tax revenue increased from 12.6% of GDP in 2024 to 13.1% in 2025.
2. Economic growth exceeds target
Ghana’s real GDP grew by 6.4% in the first quarter of 2026, surpassing the 4.8% full-year growth floor.
Non-oil GDP expanded by 6.3%, with services growing by 7.1%, industry by 6.9% and agriculture by 4.0%.
The GDP deflator also declined from 23.9% to 4.1%, suggesting growth was driven more by increased output than price increases.
3. Government’s turnaround strategy
The government’s economic recovery strategy is anchored on three Key Transformation Policies (KTPs): fiscal correction, modernising the tax regime and complementary fiscal policy to support inflation targeting and exchange-rate stability.
The policies are credited with improving fiscal discipline, boosting revenue mobilisation and strengthening the cedi and foreign reserves.
4. Inflation more than halved as poverty declines
Headline inflation fell from 13.7% in June 2025 to 5.3% in June 2026 after reaching a seven-year low of 3.2% in March.
Lower inflation has helped ease cost-of-living pressures and improved household purchasing power.
Multidimensional poverty also declined from 24.9% in Q3 2024 to 21.9% in Q3 2025, moving about 950,000 people out of deprivation.
5. Fiscal anchor holds as debt ratio reaches target
Ghana recorded a primary surplus of 0.9% of GDP in the first half of 2026, putting the country on track to achieve its 1.5% full-year target.
The debt-to-GDP ratio reduced from 61.6% at the end of 2024 to 44.7% at the end of 2025 and stood at 45.0% in June 2026. Government also cleared GH¢5.3 billion in legacy arrears without accumulating new arrears.
6. Debt becomes more sustainable
Debt service declined from 55.7% of domestic revenue in 2022 to 28.6% in 2025.
The joint IMF–World Bank assessment classified Ghana’s debt as “sustainable with room to absorb shocks”, while the risk of debt distress improved from high to moderate.
The 91-day Treasury bill rate fell to 5.7% by June 2026, while average commercial lending rates dropped from 30.2% in 2024 to 15.6%.
7. International reserves cover five months of imports
Ghana’s gross international reserves stood at US$12.9 billion, equivalent to five months of import cover.
Government allocated GH¢5 billion in 2026 to support the Ghana Accelerated National Reserve Accumulation Policy (GANRAP), while reducing the average programme cost from 14.5% to 5% of the gold purchased.
8. Sinking Fund rebuilt to meet future debt obligations
Government had accumulated about GH¢15.6 billion in the Sinking Fund as of July 22, 2026, with a target of GH¢30 billion by year-end.
The fund is expected to cover the GH¢30 billion DDEP maturity due in February 2027 and is being financed through 7% of non-oil tax revenues and domestic bond proceeds.
9. Revenue strategy focuses on compliance
Government said it was relying on improved compliance, digital systems and expanding the tax base rather than increasing tax rates.
Measures introduced include Fiscal Electronic Devices, a VAT Reward Scheme, AI-supported customs reforms and a cross-border VAT system for digital platforms, which is projected to generate GH¢2.3 billion in its first full year.
10. Major projects and 24-Hour Economy implementation progressing
Work has started on 87 Big Push projects, including 74 trunk roads and bridges, 10 urban roads and three feeder roads.
The Accra–Kumasi Expressway project has seen 122 kilometres of right-of-way cleared, with US$1.7 billion placed in a dedicated Bank of Ghana account.
The 24-Hour Economy Authority Act is also operational, with 268 fuel stations, 33 manufacturing companies and other institutions adopting multi-shift operations.
Read the Facebook post below:
Cedi ranked among best-performing currencies in Africa
Meanwhile, YEN.com.gh reported that Ghana’s currency had grabbed the headlines after it earned high marks in a recent report.
The cedi had been ranked among the top-performing African currencies, taking the fourth position behind Tunisia, Libya, and Morocco.
Other countries whose currencies had also recorded strong performances in the Business Insider report included Seychelles, Eritrea, Eswatini, Namibia, and Lesotho.
Source: YEN.com.gh
