Gov’t spending priorities in 2026: What they mean for private sector participation

The Budget Statement and Economic Policy for the 2026 fiscal year builds on the macroeconomic stability the government achieved in 2025. Recent macroeconomic data on the performance of the economy confirms exchange rate stability and single-digit inflation (5.4 percent in December 2025). The economy(GDP) also expanded by 6.1 percent in the first three quarters of 2025 from 5.7 percent in 2024 due to a decisive monetary and fiscal coordination by government. The strategic direction of government is to use the 2026 Budget as a lunchpad for macroeconomic consolidation, economic transformation and job creation for inclusive growth.

This article examines how allocations in the Budget will incentivise private sector participation with regard to government’s strategic initiatives. That said, government’s total expenditure on commitment basis for the 2026 fiscal year is projected at approximately GH¢302.5 billion (about 18.9% of GDP) which represents an increase of 20.1 percent over the 2025 projection of GH¢251.7 billion (17.8 percent of GDP). This allocation reflects a deliberate balance between fiscal consolidation and strategic investment in infrastructure, human capital and social protection. Meanwhile, the total appropriation, based on various allocations for the fiscal year ending 31st December 2026 amounts to GH¢357,105,639,079.87 (approx.Gh¢357.10 billion).

Key Strategic allocation include:

1. Agriculture and Agribusiness Allocations: Agriculture remains central to the government’s strategy for food security, industrialisation, employment and rural development. The Budget prioritises mechanisation, value-chain development and market access.

-Value Chain and Sector-Specific Investments: These investments form part of an integrated national effort to convert macroeconomic stability into jobs and inclusive growth. Major allocations across the agricultural value chains include:

• GH¢690 million to operationalise 50 Farmer Service Centres. Government intends to equip them with more than 4,400 agricultural machines (tractors, mini-tractors, harvesters, sprayers and related equipment). Operationalising the Centres will significantly boost productivity across farming communities.
• GH¢6.9 billion for the National Policy on Integrated Oil Palm Development (2026–2032) to support nurseries, out-grower schemes, land-bank activation, long-term crop financing, smallholder inclusion and local processing. The programme is projected to create 250,000 jobs across the value chain.
• GH¢828 million to construct 1,000 km of agricultural enclave roads will reduce transport costs and post-harvest losses.
• GH¢245 million to scale up food security and agro-industrial value chains under programmes such as Feed Ghana, grains and vegetables and the Nkoko Nkitinkiti livestock initiative.
• GH¢100 million to construct fishing markets and GH¢50 million to procure fishing nets and outboard motors.

2. Infrastructure and Construction Priorities: Infrastructure development is a key priority for the 2026 fiscal year and the medium-term. These allocations reaffirm government’s economic transformation and job creation agenda:

• GH¢4.3 billion to the Ministry of Roads and Highways for road construction.
• GH¢3.0 billion to the Ghana Road Maintenance Trust Fund to construct 10 km each in 166 constituencies in 2026.
• The flagship Big Push Infrastructure Programme will receive GH¢30 billion for strategic roads and bridges nationwide including major corridors such as the Accra-Kumasi Expressway and district-level road improvements. Road contracts valued at GH¢63 billion awarded so far under the programme were estimated to generate about 490,000 jobs.
• Enclave Agricultural Roads: Targeted rural road networks linking production zones to markets reinforce agricultural investments and stimulate demand for contractors, materials suppliers, transport services and logistics firms.

3. Digital Tax and Financial Management Systems: Government’s Medium-Term Fiscal Framework targets total revenue and grants to rise steadily from 16.0 percent of GDP in 2025 to 16.8 percent in 2026 and to 16.9 percent by 2029. This growth will be driven by digitalisation of revenue systems with the full rollout of the Unified Taxpayer Identification System. It is therefore imperative to note that the implementation of AI-powered trade data analytics digital tax compliance tools, fiscal electronic devices (FED) and VAT reforms will broaden the tax base, improve efficiency, and ensure transparency and fiscal discipline. Indeed, an independent Value for Money Office (VfMO) with statutory powers will also help certify, monitor and sanction public spending. Government estimates (Value for Money) potential savings of about GH¢3 billion annually and a 10-15% reduction in contract inflation and waste within five years. Government must expedite action on the design of the VfM (Value for Money) bill. Flowing from that, we expect parliament to pass the bill forthwith to give meaning to its purpose or objective.

4. Public Services and Social Protection: The budget preserves significant social spending and reinforces government’s commitments to education, health and social protection. In that regard, key resource allocations include:

• GH¢33.3 billion to the Ministry of Education for its programmes and activities. Aside from that, GH¢9.9 billion has been allocated to the GETFund.
• GH¢4.2 billion for Free Secondary Education and GH¢1.1 billion under the Ghana Secondary Learning Improvement Programme to end the double-track system.
• GH¢1.98 billion for the School Feeding Programme and GH¢292 million for free sanitary pads for girls.
• GH¢9.0 billion for NHIS claims and Free Primary Healthcare.
• GH¢2.3 billion for the Ghana Medical Care Trust (MahamaCares).
• GH¢600 million for three new regional hospitals and GH¢100 million to complete 10 Agenda 111 hospital projects.
• GH¢1.1 billion for the LEAP (Livelihood Empowerment Against Poverty) programme.
• GH¢157 million for Capitation Grants.

Sectoral Spillovers &Economic Implications: Together, these priority allocations create immediate contracting opportunities and longer-term investment pathways for private sector institutions and businesses aligned with government policy direction. Thus, for the private sector, this translates into:

1. Agriculture & Agribusiness

• New Business Lines: A holistic and expanded mechanisation and better road connectivity will spur demand for agro-processing facilities, logistics, cold storage facilities, supply-chain technologies, input suppliers and export readiness in the value chain.
• Public-Private Partnerships: Opportunities emerge in contract farming, equipment leasing, agro-processing facilities and technology-enabled agricultural services.

1. b) Infrastructure & Construction Sector

• Business Opportunities: Local contractors and SMEs stand to benefit alongside professional services in surveying, project supervision, environmental management and safety compliance.
• Sustainability Considerations: Long-term sector growth will depend on complementary industrial and private-sector investment.

1. c) Public Services and Social Protection in line with fiscal policy measures and achieving set objects (KPIs) will require the following services:

• Monitoring, Evaluation and Research: Government’s commitment to social protection programmes (LEAP, Capitation Grant, School Feeding Programme etc) increases the need for effective community-level delivery and monitoring systems. There is the need to conduct periodic and independent impact assessment and compliance audits to provide assurance to key stakeholders. Reputable firms and advisory service providers can support government agencies as part of institutional strengthening to provide audit and assurance services.
• Public-Private Partnerships: Health and education consulting including demand for curriculum development services, opportunities for contracting with government to produce sanitary pads (local material sourcing), health sector planning including the procurement of modern diagnostic machines and facility management services.

1. d) Digital Tax and Financial Management Systems Reform will invariably create demand for professional services in these areas:

• Consulting and Advisory: Demand for expertise in ERP (Enterprise Resource Planning) implementation, tax analytics, procurement reform (Ghana Electronic Procurement System (GHANEPS) and compliance frameworks.
• ICT and Cybersecurity: The need for innovative and robust digital systems creates opportunities for industry players in software development, cloud services, cybersecurity and data analytics.
• Training and Capacity Building: Public-sector staff require continuous training to effectively use new systems and tools.

Note:

Total Appropriation & Total Expenditure: While total expenditure focuses on economic impact and fiscal control, total appropriation on the other hand focuses on legal (parliamentary oversight/approval) sanctions and transparency regarding every cedi that passes through the public accounts (Consolidated Fund) including statutory and financing items.

1. Total Expenditure on a Commitment Basis (GH¢302.5 billion): This figure represents government’s actual spending obligations for 2026 fiscal year. “Commitment basis” means expenditures which government commits to spend and not when cash is paid. It typically includes public sector employee’s compensations (GH¢90.8 billion), capital expenditure (GH¢57.5 billion, selected transfers and subsidies. In policy terms, this figure (GH¢302.5 billion) will be used to assess fiscal stance and deficit, evaluate macroeconomic impact in line with the Public Financial Management Act, 2016 (Act 921) and to track compliance with IMF programme targets.
2. What appropriation includes: (approximately GH¢357,105.64 billion): In addition to commitment-based expenditure, appropriation captures earmarked funds (GH¢63.6 billion) including statutory payments in respect of District Assemblies Common Fund, National Health Insurance Fund, GETFund, Energy Sector Levies Account (ESLA transfers). Total appropriation also includes debt-related transactions and interest payments of GH¢57.7 billion (domestic & foreign debts). Parliament approved this amount (GH¢357,105,639,079.87) in line with the Appropriation Act even though they do not all translate into fresh spending in the economy in 2026

Conclusion

The 2026 Budget represents a pivotal moment in Ghana’s economic recovery and transformation agenda. Building on the macroeconomic stability, government has deliberately aligned fiscal consolidation with strategic investments aimed at unlocking productivity, accelerating job creation and fostering inclusive growth. The various resource allocations for priority areas underscores a strategic shift towards collaboration between the public and private sectors in delivering national development objectives.

Click here for source.