Finance Minister Dr. Cassiel Ato Forson presents the 2026 Budget Statement and Economic Policy to Parliament today, Thursday, November 13, 2025, marking the first full year fiscal plan of the Mahama administration and a defining moment for Ghana’s economic direction after nearly a year of stabilization efforts.
The budget comes as Ghana’s economy shows remarkable recovery signs, with second quarter gross domestic product (GDP) growth reaching 6.3 percent and inflation dropping to single digits for the first time since 2021. However, stakeholders across business, labor and civil society are pressing for policies that translate macroeconomic stability into tangible improvements affecting ordinary Ghanaians.
Business groups have outlined competing but overlapping demands reflecting different sector priorities. The Food and Beverages Association of Ghana (FABAG) publicly listed seven priority expectations including reduction of nuisance taxes, measures to stabilize foreign exchange markets and inflation, and policies supporting local manufacturing and value addition.
FABAG Executive Chairman John Awuni lamented the growing challenges facing manufacturers, warning that persistent fiscal and regulatory pressures continue to erode industry gains. The association urged government to review multiple levies including the COVID 19 levy, excise duties, the Environmental Excise tax, container fumigation fees and various overlapping regulatory charges.
“The cumulative taxes have increased the cost of doing business, undermined competitiveness, and encouraged smuggling of cheaper products into the country,” the FABAG statement noted. The association wants the 2026 Budget to introduce targeted tax reliefs for local producers, particularly small and medium enterprises, to encourage investment, job creation and formalization.
The Ghana Union of Traders’ Association (GUTA), representing one of the largest business constituencies, is watching for policies protecting cross border traders while reducing the cost and time of doing business. The group seeks simpler value added tax (VAT) rules, predictable border procedures and support for small traders who form the backbone of Ghana’s retail economy.
The Association of Ghana Industries (AGI) wants initiatives protecting local manufacturing through targeted tariffs, procurement priorities and incentives reviving domestic production capacity, especially in inputs used by miners and exporters. Manufacturers are calling for affordable credit, lower energy costs and better infrastructure enhancing productivity and export capacity.
The private sector’s message centers on lower nuisance taxes, predictable VAT rules that do not punish local firms, reduced lending costs and targeted public investment kickstarting private sector supply chains. According to the KPMG and United Nations Development Programme (UNDP) 2026 Pre Budget Survey, businesses want stability with impact rather than stability alone.
Ghana remains inside a three year Extended Credit Facility (ECF) with the International Monetary Fund (IMF). The Fund reached a staff level agreement on the fifth review in October 2025, a milestone that would unlock approximately US$385 million once approved by the IMF Executive Board expected by December.
Previous reviews and disbursements have supported Ghana’s recovery, helping restore reserves and market confidence. The IMF noted in October that macroeconomic stabilization is taking root, with growth in the first half of 2025 stronger than anticipated, underpinned by strong services activity and agricultural output.
The external sector improved noticeably on robust exports, particularly gold and cocoa. International reserves accumulation continues exceeding ECF supported program targets, while the cedi appreciated markedly in the first half of the year. The fiscal primary balance for the first eight months of 2025 posted a surplus of 1.1 percent of GDP, on track to achieve the 1.5 percent target by year end.
The three year programme approved in May 2023 officially ends in 2026, with some economists and policy commentators arguing that authorities should consider careful sequencing to safeguard reforms and financing while debt restructuring talks and structural reform implementation continue. Dr. Forson will need to reassure markets that Ghana will both meet Fund conditions and use the breathing room to invest productively.
Infrastructure projects represent a critical area contractors will scrutinize intensely. Although some projects inherited from the previous government were halted for review and audit, the Finance Minister has signaled hope in this area. The Takoradi Market Circle project returned to the spotlight after Dr. Forson inspected the abandoned redevelopment days before the budget, giving clear signals that the administration is committed to resuming the project early next year.
Businesses and traders around Takoradi will look for specific budget allocations or concrete public private timelines. Analysts note that a budget merely promising resumption will not satisfy traders who have watched the site sit idle for years. What’s needed is a clear financing plan, procurement timeline and protections for displaced traders.
Stakeholders will also watch for the number of projects to be resumed, new initiatives to be launched, and their budgetary allocations. The government spent only GH¢17 billion on infrastructure in the first half of 2025, around 1.4 percent of GDP, a level some economists consider inadequate for driving transformational growth.
VAT reform has been in the pipeline for months. The Ministry of Finance earlier committed to prepare a new VAT Bill after nationwide consultations, aiming to submit it as part of the 2026 Budget package. The mid year policy review even signaled that the COVID 19 levy would be abolished under the reform process.
Will the reforms be finally announced in the budget? Stakeholders have pushed for simplification, higher registration thresholds for small businesses and reversal of decoupling that caused cascading VAT effects. The question remains whether the VAT system will move toward a single unified rate and remove punitive flat rates.
The COVID 19 levy has become a particularly controversial talking point. Official policy documents and the mid year review suggested removing the levy as part of VAT reform. If Dr. Forson follows through, that will be welcome relief to households and businesses who have complained about the layering of levies. However, removal must be offset by credible alternative revenue measures so fiscal targets and IMF conditions are preserved.
Perhaps the budget’s most important aspect for economists concerns the direction government will choose between cautious stability preservation and bold transformational spending. The numbers have improved considerably, with Ghana’s debt ratios and inflation falling in 2025 and rating agencies upgrading the outlook.
However, public investment remains low. The low capital intensity risks a stable but stagnant outcome unless decisive public investment is mobilized to catalyze private capital. There are also discussions about driving growth to create jobs for the teaming youth, which would require significant spending and borrowing that could potentially jeopardize economic stability.
Another school of thought believes it is safer for government to choose middle ground, protecting gains while announcing targeted catalytic spending for manufacturing clusters, market infrastructure, energy transition and digital adoption. This balanced approach could satisfy both stability concerns and growth imperatives.
Dr. Forson has previously indicated that the 2026 Budget will prioritize job creation and economic growth with targeted investments in sectors driving productivity, innovation and youth employment. The Finance Minister is expected to review several levies as part of measures supporting business recovery and boosting consumer confidence.
Economic observers note that the 2025 Budget, presented shortly after the National Democratic Congress administration took office, largely operated within the fiscal framework inherited from the previous government. The upcoming 2026 Budget, however, is expected to signal a major policy shift reflecting the government’s own economic priorities and development agenda.
With Ghana set to exit the IMF programme in May 2026, the upcoming budget will be closely scrutinized for its post programme strategy. Economists and market watchers will look for signals on how government intends to consolidate fiscal discipline while stimulating growth and maintaining macroeconomic stability.
The Finance Ministry has completed several rounds of stakeholder engagements, including meetings with industry leaders, civil society organizations and development partners. These consultations, according to sources, were crucial in finalizing the policy measures and expenditure priorities shaping the 2026 fiscal blueprint.
Under the Public Financial Management Act, the Finance Minister, acting on behalf of the President, is mandated to present the national budget to Parliament not later than November 15 each year. The announcement was made by Majority Leader Mahama Ayariga on Friday, November 7, 2025, during presentation of the Business Statement for the coming week in Parliament.
Ahead of the presentation, Dr. Forson engaged traders and market women at Takoradi Market Circle as part of stakeholder consultations. The engagement forms part of government’s broader efforts to ensure that the 2026 Budget reflects the realities, hopes and expectations of ordinary Ghanaians.
Describing the encounter as the highlight of his visit to the Western Region, Dr. Forson said the discussions were both humbling and inspiring. “It was clear that our efforts to stabilize the economy are beginning to bear fruit,” the Minister remarked after meeting with traders. “Many spoke of easing prices, renewed confidence and a growing sense that the tide is finally turning in their favour.”
Parliament will scrutinize the budget document in coming weeks, with the Majority Leader Mahama Ayariga noting that the Business Committee has observed significant numbers of pending referrals before various House committees. Currently, 300 referrals have been made to 23 committees for consideration and report to Parliament.
The budget presentation represents more than numbers and speech. It constitutes a critical economic roadmap whose choices will significantly affect every Ghanaian, businesses, the IMF and investors. The Finance Minister faces the delicate balancing act of maintaining fiscal discipline required under the IMF programme while addressing legitimate calls for growth oriented spending creating jobs and opportunities.
The comprehensive debt restructuring is progressing well. Following the signing of a Memorandum of Understanding with the Official Creditor Committee under the G20 Common Framework, bilateral agreements have been concluded with five countries. Authorities have taken strong actions to support financial stability, including implementing the strategy to restructure and reform state owned banks.
The recapitalization of state owned banks is expected to be completed by end 2025. Authorities are committed to strengthening governance and public sector efficiency, with the Governance Diagnostic Assessment report completed and set for publication in coming weeks. Efforts to improve transparency and oversight need to continue, particularly in managing state owned enterprises in the gold, cocoa and energy sectors.
Market analysts suggest that successfully balancing stability with growth could position Ghana as a model for economic recovery in Sub Saharan Africa. The country’s ability to maintain fiscal discipline while delivering growth would demonstrate that stabilization need not mean stagnation when policies are carefully designed and sequenced.
International development partners including the World Bank, African Development Bank and bilateral donors will also monitor the budget closely. Their continued support depends partly on Ghana maintaining reform momentum and demonstrating commitment to sustainable development priorities including climate action, gender equality and poverty reduction.
As Parliament prepares for today’s presentation, the stakes could not be higher. Ghana stands at a crossroads where policy choices made in this budget will shape the country’s economic trajectory for years. The challenge involves crafting a fiscal plan as smart, agile and coordinated as the economic transformation it aims to achieve.
