As required by law, Finance Minister, Dr. Cassiel Ato Forson, is set to walk into Parliament on November 13 with another heavy briefcase to present the government’s budget and statement of economic policy for the 2026 fiscal year.
This will be his second budget since the new administration took office after the 2024 elections, and all eyes will be on how he plans to steer Ghana from a hard-won recovery phase into one of real, sustainable growth.
While the 2025 Budget largely inherited the framework of the previous government, the 2026 Budget is expected to bear the full imprint of the President Mahama-led administration’s economic policies as the IMF bailout program nears an end.
Ahead of the budget, there are a lot of expectations, demands and anxieties from many analysts, industry players, economists and observers.
Some observers say this is the moment for Dr. Ato Forson to be bold in the name of Ghana’s long-term health.
“Bite the Bitter Bullet” — A Call to Cut to Grow
One of the clearest voices urging the Finance Minister to take tough but necessary steps is John Awuah, a banking executive. The Chief Executive Officer of the Ghana Association of Banks (GAB) is urging the minister to “bite the bitter bullet” and cut back on what he describes as “feel-good but fiscally draining programmes.”
His proposals, among others, are for the Minister for Finance to be straightforward and bold enough to cancel or reform certain social programmes and channel the savings, an estimated ₵1.7 billion, into building a strong industrial base capable of creating real jobs and reducing Ghana’s dependence on imports.
The list of potential cuts includes the free first-year tertiary education, which could save about ₵450 million; trainee nurses and teacher allowances, together saving nearly ₵700 million; and a review of Free SHS to exclude wealthier beneficiaries, potentially saving ₵600 million.
Awuah argues that the money saved could be rechanneled into supporting 10 to 20 local manufacturing firms with concessionary loans at 5% interest to expand production of import substitutes like tiles, detergents, pharmaceuticals, and basic food items.
A Budget Caught Between Compassion and Prudence
The challenge for Dr. Ato Forson is that the very programmes John Awuah wants scrapped are politically sensitive. Free SHS, teacher and nurse trainee allowances, and free tertiary education are all seen as lifelines for many families.
Yet, the economic realities are harsh. Ghana is still recovering from years of fiscal strain, external shocks, and debt distress. Though inflation has finally eased into single digits and the cedi has steadied, the budget deficit remains tight, and public debt looms large.
The 2026 Budget will test whether the government can balance social compassion with fiscal discipline in a year that the IMF will leave town.
A Continuation or a Turning Point?
Early indications suggest that the 2026 Budget will continue the government’s cautious path of fiscal consolidation, focusing on revenue mobilization, debt restructuring, and controlled spending.
But there’s growing pressure, from both within and outside the economic community, for the government to move beyond stabilization and into transformation.
Stakeholder consultations by the Finance Ministry as part of the budget preparations reportedly centered on industrial policy, job creation, and private sector competitiveness. Is this an indication that the government may be taking some of these calls seriously?
Only time will tell.
