The 2026 Budget: Prospective for resetting for the transformation

The 2026 Budget under the theme, “Resetting for Growth, Jobs, and Economic Transformation”, signifies that confidence is returning. Ghanaians now believe that the nation is going to rise once more. The feeling, generally, is that Ghana is back, strong, stable, and full of hope.

With that renewed energy of optimism, the 2026 Budget is about building on the foundation laid in 2025, “turning stability into opportunity, and opportunity into prosperity”, as stated by the Finance Minister.

The 2026 budget signals a commitment to accelerating economic transformation by investing boldly in key productive sectors. This is a critical move toward the stated vision of building “a Ghana that produces more than it consumes” and “exports value-added goods, not just raw materials.” Obviously, understanding Ghana’s national development difficulties is the first step in the search for solutions.

Significant investment is earmarked for the productive sectors:  energy, infrastructure, commercial agriculture, aquaculture, and agribusiness. The intent is to power non-oil GDP growth, which has already shown resilience, expanding by 7.8% in H1 2025. The budget also supports the expansion of initiatives like the “24-Hour Economy” and the “Big Push,” which are intended to unleash economic opportunities across all regions and create a more dynamic, round-the-clock commercial environment.

The foundation of any economic transformation agenda is the continued consolidation of macroeconomic stability. The budget therefore prioritizes sustaining fiscal discipline, strengthening revenue mobilization (with an ambitious target of GH₵268 billion), and ensuring responsible debt management to protect the economy from future shocks. Also, the abolition of the COVID-19 levy and VAT reforms are key measures aimed at easing the tax burden and improving compliance.

Job creation is one of the most ambitious targets of the 2026 budget, moving the focus from stability to jobs by stimulating key employment-generating sectors. The government aims to create approximately 800,000 new jobs, with a particular emphasis on youth employment and support for Small and Medium-sized Enterprises (SMEs). Investments in manufacturing, agriculture (including the distribution of over 4,000 machinery to farmers), construction, and services are directly linked to generating sustainable employment opportunities.

Nonetheless, the budget commits to modernizing education and improving healthcare access to equip the workforce with necessary skills and ensure inclusive growth. This aligns with the long-term need to shift workers from low-productivity informal sectors into high-productivity manufacturing and modern services.Infrastructural Modernization

Infrastructural development receives a major financial boost, serving as an enabler for both economic development and job creation.

1. The Big Push Infrastructure

Under the 2026 Budget Statement, presented by Finance Minister, Hon. Dr. Cassiel Ato Forson on November 13, 2025, the government has reechoed its major infrastructure drive dubbed the “Big Push” alongside specific donor-supported initiatives. This is the central pillar of the 2026 budget, with a massive domestic allocation of GH¢30.8 billion (approx. $2.8 billion) specifically for roads and bridges. This is a significant increase from previous years, aimed at completing stalled projects and opening new economic corridors. This funding targets major arterial, regional, rural, and cross-border roads to improve connectivity and reduce transportation costs, particularly for agricultural enclaves. The Key Projects to be Undertaken:

• Accra–Kumasi Expressway: Construction of a new expressway designed to reduce travel time between the two major cities by 50%. This is a priority project to boost trade and transport efficiency.
• Adawso–Ekye Amanfrom Bridge: Construction of a bridge over the Afram River. This strategic project aims to unlock the agricultural potential of the Afram Plains and connect the Eastern and Ashanti regions.
• The “Western Corridor” and Northern Links: Upgrading of 260 km of roads to create a continuous asphalted corridor linking Wa, Lawra, Navrongo, and Hamile. This connects the North West directly to Burkina Faso.
• Constituency Road Projects: An allocation of GH¢3.0 billion to the Ghana Road Maintenance Trust Fund to construct 10km of roads in the various constituencies, ensuring local-level infrastructure development.

1. Energy Security

The budget addresses a critical industrial need by outlining plans to establish a new 1200MW power plant. Reliable power supply is essential for supporting industrial growth and the goal of a 24-Hour Economy.

1. Donor-Funded & Partner-Backed Projects

While the “Big Push” is largely domestically driven, specific sectors have significant donor and partner funding attached for 2026.

In agriculture, a U$500 million long-term financing facility for National Integrated Palm Oil Development Policy (2026–2032) was developed in partnership with the World Bank and Ghana Development Bank (GDB) in order to develop 100,000 hectares of oil palm plantations and processing plants, aiming to end palm oil imports and create jobs.

In Education a GH¢1.1 billion specific allocation to Ghana Secondary Learning Improvement Programme (GSLIP). This is a two-year initiative (2026–2027) to end the Double-Track System in Senior High Schools. Funds will cover the rapid construction of classrooms, dormitories, and science labs to accommodate all students in a single track.

In the Energy Sector, a GH¢2 billion Rural Electricity Acceleration and Urban Intensification Initiative will be implemented to expand the national electricity grid to unconnected rural communities and intensify supply in growing urban areas.In Security and Defense, this plan also includes significant expenditure for national security, such as the procurement of new aircraft and helicopters for the Ghana Armed Forces, which are part of efforts to retool and modernize the security forces.

Regarding Funding, a critical change in the 2026 budget is the source of infrastructure funding. The government is amending the investment strategy for the Ghana Petroleum Funds (GPFs). Instead of investing these funds solely in low-yield local/foreign securities, a portion will now be invested in domestic commercially viable energy and infrastructure projects. This aims to “make oil wealth work for Ghanaians” by directly funding projects like the energy infrastructure mentioned above.

Job Creation Strategies

The 2026 Budget, places a heavy emphasis on direct job creation and relieving the cost-of-doing-business burden for Small and Medium Enterprises (SMEs). The government projects the creation of approximately 800,000 jobs through three primary pillars: Infrastructure, Industrialization (24-Hour Economy), and Digital Skills.

a)    The “Big Push” (Infrastructure Jobs): This is the largest single source of projected employment. By launching massive road and bridge projects (like the Accra-Kumasi Expressway and constituency roads), the government aims to absorb large numbers of artisans, laborers, and engineers immediately. With budget allocation of GH¢30.8 billion, 490,000 construction and ancillary jobs are expected.

b)    The “24-Hour Economy” (Industrial Jobs): This is the establishment of 7 new processing plants (for crops like palm oil, cashew, and shea) designed to run on multiple shifts. Construction of 3 major garment factories in Tema, Kumasi, and Tamale to serve both domestic and export markets. With allocation of GH¢110 million for initial setup, plus private sector incentives, 120,000 jobs in manufacturing and processing.

c)    Digital & Youth Jobs: The goal is to train youth in software development and coding to tap into the global remote-work market, a budget allocation of GH¢100 million.

In addition, the budget also introduces specific funds to solve the usual “lack of capital” challenge for Small and Medium Enterprises (SMEs), with a special focus on women and youth.

1. Women’s Development Bank; with a budget allocation of GH¢401 Million, the specialized financial institution to provide low-interest loans strictly to women-owned SMEs, addressing their historical difficulty in accessing collateral-based loans.
2. “Adwumawura” Programme; with a budget allocation of GH¢160 Million, the business support vehicle designed to nurture 10,000 young entrepreneurs annually with seed capital and mentorship.
3. National Apprenticeship Programme; with a budget allocation of GH¢170 Million, Funding for technical and vocational training (TVET) to provide skilled labor for the SMEs and industries being built.
4. Farmer Service Centres; with a budget allocation of GH¢690 Million to operationalize centers that provide SMEs in the agriculture sector with mechanized inputs and support.

Undoubtedly, these measures when well-coordinated have the potential of providing sustainable jobs for the youth.

Notwithstanding, the budget also introduces specific Tax Incentives and Relief for Businesses. Finance Minister, Hon Dr. Cassiel Ato Forson announced significant tax reforms aimed at improving cash flow for businesses.

1. Repeal of COVID-19 Health Recovery Levy; the 1% levy on the supply of goods and services is abolished. This immediately reduces the cost of pricing for SMEs and consumers.
2. Major VAT Reforms: the VAT registration threshold has been raised from GH¢200,000 to GH¢750,000. Small businesses with annual turnover under GH¢750k will no longer be burdened by the complex VAT filing system, significantly reducing their administrative costs.
3. Input Tax Credit Restoration; businesses can now claim input tax deductions on NHIL (National Health Insurance Levy) and GETFund levies. This removes the “tax-on-tax” (cascading) effect, effectively lowering the cost of doing business and likely reducing shelf prices.
4. Note on E-Levy; the budget statement reaffirms the administration’s previous action to scrap the E-Levy and Emissions Levy (April 2025), cementing a tax environment designed to encourage digital payments and transport logistics for SMEs.

The 2026 budget is a forward-looking plan that seeks to convert hard-won macroeconomic stability into tangible, transformative growth, driven by strategic infrastructure spending, sector-specific investment, and a direct focus on mass job creation. This budget, particularly, has set out a well-intentioned measures to create the necessary job for the youth.

However, there has been perennial public sector inconsistency in how Ghana intends to promote private enterprise. Public institutions have the mandate and resources, often donor-funded, but lack the practical delivery mechanism. Many government programs offer generic training seminars that fail to translate into tangible business improvements.

There is, therefore, the need for a “hand-holding” of the private sector distinct from the current one-day workshop, but a sustained, individualized mentorship and accountability framework. This is a clarion call for a practical and integrated support, pivot from transactional support – giving a loan or a grant, to transformational support – a process of intentional “hand-holding” where the public sector acts as a temporary partner to build resilience. The public sector’s role is not just to provide funds, but to create a fertile, supportive ecosystem. However, many state agencies dedicated to entrepreneurship development struggle with a ‘Public Sector Paradox.

Government agencies, for example, NEIP, Ghana Enterprises Agency must co-opt professional accountants to physically help MSMEs set up the legal structures, separation of accounts, and basic payroll systems.

Also, funding should be conditional on three-to-six months of intensive, sector-specific incubation. This involves daily monitoring of cash flow and expense reports by a designated business development officer. Government can subsidize and implement simple mobile-based accounting software for every beneficiary to replace manual bookkeeping. This digital trail serves as verifiable data for future credit assessment.

More so, government can implement a tranche system where capital is released in stages, with each new tranche contingent upon meeting strict financial management and governance milestones from the previous stage. This ensures money is used correctly.

In conclusion, public sector institutions need to synergize the various specific SME skills training and funding opportunities with the various national projects to ensure goal congruence and results. These include;

1. “SME High Growth” Programme at the Ghana Enterprises Agency
2. NVTI / TVET Centres for “Big Push” (Roads & Housing) with Construction Skills (Artisans)
3. National Oil Palm Initiative for Tree Crop Development Authority (TCDA)
4. National Coders Programme Ghana Digital Centres; train the youth for remote international jobs
5. Ghana Skills Development Fund (GSDF) at CTVET for staff of SMES

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