The government is requesting parliamentary approval of a total amount of GH¢357,105,639,079.87 for it expenditure for the 2026 fiscal year.
Additionally, total expenditure on a commitment basis for 2026 has been programmed at GH¢302.5 billion, representing 18.9 per cent of Gross Domestic Product (GDP).
This represents 18.9 per cent of GDP, and an increase of 20.1 per cent over the 2025 projection of GH¢251.7 billion (17.8 per cent of GDP).
Minister for Finance Dr Casiel Ato Forson who announced these when he presented the 2026 budget statement and economic policy of government to parliament on Thursday, November 13, 2025, said this allocation reflects a deliberate balance between fiscal consolidation and strategic investment in infrastructure, human capital, and social protection.
Presenting the budget statement on the theme: “Resetting for Growth, Jobs, and Economic Transformation”, Dr Ato Forson explained that primary expenditure, that is, expenditure excluding interest payments, is projected at GH¢244.7 billion, equivalent to 15.3 percent of GDP.
GH¢90.8 billion for compensation
The Finance Minister said the compensation of employees, covering wages, salaries, pensions, gratuities, and social security contributions, is projected at GH¢90.8 billion (5.7 percent of GDP), reflecting the 9% negotiated increase in base pay for public servants under the Single Spine Salary Structure (SSSS).
He also indicated that the use of Goods and Services is projected at GH¢13.2 billion (0.8 percent of GDP) to enhance efficiency in service delivery across the Ministries, Departments and Agencies (MDAs).
Furthermore, grants to other Government Units, comprising transfers to earmarked funds such as GETFund, National Health Insurance Fund (NHIF), and District Assemblies Common Fund (DACF), are estimated at GH¢63.6 billion (4.0 percent of GDP).
GH¢57.7 billion for interest payments
The Minister for Finance also announced that interest payments are projected at GH¢57.7 billion (3.6 percent of GDP), of which GH¢50.1 billion represents domestic interest and GH¢7.6 billion external interest.
According to Dr Ato Forson, continued debt restructuring and liability management will further reduce the interest burden over the medium term.
GH¢57.5 billion capital expenditure
The Minister for Finance said the Capital Expenditure (CAPEX) is projected at GH¢57.5 billion (3.6 percent of GDP), reflecting Government’s commitment to growth-driving investments.
“Of this, GH¢45.5 billion (2.8 percent of GDP) represents domestically financed capex, comprising GH¢15.5 billion for MDAs and GH¢30.0 billion for the Big Push Infrastructure Programme.
“Foreign-financed capex, mainly project loans and grants, is projected at GH¢12.0 billion (0.8 percent of GDP),” Dr Ato Forson stated.
GH¢19.7 billion for other expenditures
The Finance Minister indicated that other expenditures, including ESLA transfers, payments to Independent Power Producers (IPPs) are estimated at GH¢19.7 billion (1.2 percent of GDP).
“Mr. Speaker, based on these allocations, the total appropriation for the fiscal year ending 31st December 2026 amounts to is GH¢357,105,639,079.87.
Over fiscal balance
The Finance Minister revealed that the overall fiscal balance on commitment basis is projected at a deficit of GH¢34.4 billion, equivalent to 2.2 percent of GDP. “The corresponding primary balance records a surplus of GH¢23.3 billion, representing 1.5 percent of GDP, in line with our medium-term fiscal target.
“On a cash basis, the overall deficit is projected at GH¢64.2 billion, equivalent to 4.0 per cent of GDP, while the primary deficit stands at GH¢6.5 billion (0.4 per cent of GDP).
“The cash deficit of GH¢64.2 billion will be financed from a balanced mix of foreign and domestic borrowing sources,” the Finance Minister further announced.
GH¢6.6 billion for foreign financing
Dr Ato Forson also indicated that foreign financing is projected as a net repayment of GH¢6.6 billion (0.4 percent of GDP). “This includes expected disbursements from the IMF Extended Credit Facility (US$360 million), the World Bank Development Policy Operation and other bilateral partners of US$313.2 million,” he projected.
GH¢71.0 billion for domestic financing
Domestic financing will amount to GH¢71.0 billion (4.4 per cent of GDP) and will be sourced primarily through issuances of long-and short-term government securities.
This strategy, according to Dr Ato Forson, will support domestic market development, ensure debt sustainability, and maintain financial sector stability.
“Mr. Speaker, this fiscal framework is not just a set of numbers; it is a roadmap for sustained stability and inclusive growth. It represents a disciplined yet forward-looking budget: one that invests wisely, spends efficiently, protects the vulnerable, and restores full confidence in Ghana’s economy,” the Finance Minister told Parliament.
Job creation
The Finance Minister gave assurance that every cedi spent in 2026 will be a cedi that delivers results, creates jobs, builds infrastructure, and drives prosperity for all Ghanaians.
