Every year, the Finance Minister presents a document that determines how much you pay in taxes, how much the government borrows, and how much is spent on your roads, schools, hospitals and salaries. It is called the national budget, and it is the single most important financial statement in the country.
For the 2026 fiscal year, the government plans to spend GH¢357.1 billion . That is a staggering number — roughly GH¢10,000 for every man, woman and child in Ghana. But where does that money actually come from? And more importantly, where does it go? Understanding the answers to these questions explains why some things work, why others do not, and why the government keeps borrowing.
Quick Facts
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Total expenditure: GH¢357.1 billion approved for the 2026 fiscal year .
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Revenue target: GH¢268.1 billion in revenue and grants .
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Largest revenue source: Non-oil tax revenue, projected at GH¢216.1 billion (80.6% of total revenue) .
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Largest expenditure item: Compensation of employees, budgeted at GH¢90.8 billion .
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Debt interest: GH¢57.7 billion budgeted for interest payments, with GH¢50.1 billion going to domestic interest .
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Capital expenditure: GH¢57.5 billion, including GH¢30 billion for the Big Push Infrastructure Programme .
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Primary balance: The budget targets a 1.5% of GDP surplus .
Where the Money Comes From
The government does not have a single bank account that magically fills up. It collects money through taxes, fees, oil revenues, grants and borrowing. Here is how the 2026 revenue picture looks.
Taxes: The Backbone of Government Revenue
The overwhelming majority of government revenue comes from taxes. For 2026, the government projects non-oil tax revenue of GH¢216.1 billion, which represents about 80.6% of total revenue .
This tax revenue comes from several sources. Income and property taxes — including Pay-As-You-Earn (PAYE) on salaries, company taxes, and taxes on oil companies — are a major component. Taxes on domestic goods and services — including Value Added Tax (VAT), excises, and the National Health Insurance Levy (NHIL) — make up another large share . Customs duties on imports contribute as well.
The 2026 budget introduced several measures designed to increase tax collection. The government raised the VAT registration threshold from GH¢200,000 to GH¢750,000, which means smaller businesses are exempt from the complexity of VAT registration. It also announced the abolition of the COVID-19 Health Recovery Levy and the recoupling of NHIL and GETFund levies into the VAT framework, which simplifies the tax structure.
The government is also deploying technology to catch tax evaders. The budget introduced digital solutions to monitor and collect VAT on cross-border digital transactions conducted on platforms owned by non-resident companies. AI-driven pre-arrival inspections at ports are meant to detect under-valuation and smuggling .
Non-Tax Revenue: Fees, Fines and Internal Funds
Beyond taxes, the government collects money from fees, charges, fines and other sources. Non-tax revenue (excluding oil) is estimated at GH¢20.9 billion for 2026, representing about 7.8% of domestic revenue . Of this amount, GH¢18.2 billion will be retained by Ministries, Departments and Agencies to support their operations, while GH¢2.8 billion will go into the Consolidated Fund — the government’s main bank account .
Oil and Gas: A Smaller but Significant Contributor
Ghana is an oil-producing country, and oil and gas receipts are projected at GH¢13.6 billion for 2026. This is driven by improved efficiency across producing fields and steady global oil prices. While oil revenue is not the dominant source of government income, it remains significant for financing specific budget lines.
Grants: Support From Development Partners
Grants from development partners are projected at GH¢3.1 billion, equivalent to 1.1% of total revenue and grants . These grants are entirely project-related, supporting key development initiatives aligned with government priorities.
Borrowing: Filling the Gap
When revenue does not cover expenditure, the government borrows. For the first half of 2026, the government paid GH¢21.5 billion in interest on debt and US$700 million for Eurobond debt service . The approved 2026 budget targets a primary surplus of 1.5% of GDP, which means that before interest payments, the government is actually collecting more than it spends on everything else. But after interest payments, the budget remains in deficit, requiring borrowing to finance.
Where the Money Goes
Now that we know how the money comes in, here is how it is spent.
Compensation: Paying Public Workers
The single largest expenditure item in the 2026 budget is compensation of employees — wages, salaries, pensions, gratuities and social security contributions for public sector workers. This is budgeted at GH¢90.8 billion, equivalent to 5.7% of GDP. The figure reflects a negotiated 9% increase in base pay under the Single Spine Salary Structure.
By mid-2026, the government had paid GH¢48.8 billion in compensation, including GH¢4 billion in SSNIT and Tier 2 Pension Scheme contributions .
Debt Interest: Paying for Past Borrowing
Interest payments are projected at GH¢57.7 billion, or 3.6% of GDP . Of this, GH¢50.1 billion goes toward domestic interest and GH¢7.6 billion toward external interest . By mid-year, GH¢21.5 billion had been paid in interest, along with US$700 million for Eurobond debt service and GH¢10 billion to domestic bondholders .
Interest payments consume a significant share of government revenue. A former Finance Minister has noted that rigid items like wages, interest and statutory transfers consume more than two-thirds of total spending, leaving limited room for transformative investments.
Capital Expenditure: Building and Investing
Capital expenditure — money spent on infrastructure, equipment and development projects — is projected at GH¢57.5 billion, or 3.6% of GDP. Of this, GH¢45.5 billion is domestically financed, including GH¢15.5 billion for MDAs and GH¢30 billion for the Big Push Infrastructure Programme . The remaining GH¢12 billion comes from foreign-financed sources such as project loans and grants .
By mid-2026, the government had paid GH¢11.5 billion in capital expenditure and GH¢6.5 billion into the Big Push Infrastructure Programme .
Goods and Services: Running the Government
The use of goods and services — the day-to-day costs of running ministries, departments and agencies — is pegged at GH¢13.2 billion, or 0.8% of GDP. This covers things like office supplies, fuel, utilities and maintenance.
Social Protection and Education
The 2026 budget allocated significant sums to social sectors. GH¢4.5 billion was released to sustain the National Health Insurance Scheme, and GH¢1.1 billion went to MahamaCares for specialised healthcare . In education, GH¢4.2 billion was channeled to GETFund, GH¢1.8 billion supported the Free Secondary Education Programme, and GH¢537 million went toward the “No Fees Stress Policy” for tertiary students . Teacher and nursing trainee allowances received GH¢104 million and GH¢144 million respectively .
The Ghana School Feeding Programme received GH¢877 million, and LEAP beneficiaries received GH¢485 million
Energy, Roads and Infrastructure
The energy sector received GH¢7.1 billion to ensure stable power, while road maintenance was bolstered with GH¢1.7 billion from the Road Maintenance Trust Fund . The District Assemblies Common Fund received GH¢4.4 billion to deepen decentralisation .
Youth Employment and Agriculture
The Youth Employment Agency received GH¢459 million, and the National Apprenticeship Programme received GH¢45 million . The Ministry of Food and Agriculture received GH¢1.1 billion for programmes like the National Food Buffer Stock Company, fertilizer distribution and irrigation .
Other Allocations
The government allocated GH¢477.4 million to IRECOP for environmental sustainability and GH¢16 million to the National Anti-Illegal Mining Operations Secretariat . Notably, GH¢58 million was disbursed to support Ghana’s participation in the 2026 FIFA World Cup .
The Gap Between Revenue and Expenditure
The 2026 budget illustrates a fundamental challenge: the government’s revenue target of GH¢268.1 billion falls short of its expenditure of GH¢357.1 billion . The difference is financed through borrowing.
This is not unique to 2026. Ghana has consistently run budget deficits, which have contributed to a growing public debt stock. The government’s fiscal strategy, supported by the IMF programme, aims to achieve a primary surplus — meaning that before interest payments, revenue exceeds expenditure. The 2026 budget targets a primary surplus of 1.5% of GDP . The idea is that by running primary surpluses, the government can gradually reduce the debt burden over time.
But achieving this requires either raising more revenue or cutting expenditure. The government has chosen a mix of both: new tax measures to boost revenue, and efforts to streamline spending and reduce subsidies, particularly in the energy sector.
Frequently Asked Questions
What is the total budget for Ghana in 2026?
Parliament approved total government expenditure of GH¢357.1 billion for the 2026 fiscal year .
Where does most of Ghana’s government revenue come from?
Taxes are the largest source. Non-oil tax revenue is projected at GH¢216.1 billion, representing about 80.6% of total revenue .
What is the largest single expenditure item in the budget?
Compensation of employees (wages, salaries, pensions) is the largest, budgeted at GH¢90.8 billion .
How much does Ghana spend on debt interest?
The 2026 budget allocates GH¢57.7 billion for interest payments, with GH¢50.1 billion going to domestic interest and GH¢7.6 billion to external interest .
What is capital expenditure and how much is allocated?
Capital expenditure is money spent on infrastructure and development projects. The 2026 budget allocates GH¢57.5 billion, including GH¢30 billion for the Big Push Infrastructure Programme .
What is the primary balance and why does it matter?
The primary balance is revenue minus expenditure, excluding interest payments. A primary surplus means the government is covering its operating costs without borrowing. The 2026 budget targets a 1.5% of GDP primary surplus .
How is the government trying to increase revenue?
The 2026 budget includes measures like raising the VAT registration threshold, digital tools to monitor cross-border digital transactions, AI-driven customs inspections, and reforms to simplify the tax structure.
Why does Ghana still need to borrow if it targets a primary surplus?
A primary surplus means revenue exceeds non-interest spending. But interest payments are still larger than the surplus, so the overall budget remains in deficit, requiring borrowing to cover the gap.
What to Remember
The national budget is a statement of priorities expressed in cedis. In 2026, the government plans to spend GH¢357.1 billion, with the largest shares going to public sector wages, debt interest, and capital expenditure.
Most of the money comes from taxes — income taxes, VAT, customs duties and other levies. Oil revenue, non-tax revenue and grants make up the rest. When revenue falls short, the government borrows, adding to the public debt.
The budget’s rigid items — wages, interest and statutory transfers — consume the majority of spending, leaving limited room for new investment. The government is trying to change this by increasing revenue and streamlining expenditure, but the gap between what Ghana earns and what it spends remains the central challenge of public finance.
For ordinary Ghanaians, the budget determines how much you pay in taxes, whether your salary is paid on time, and whether the infrastructure you rely on gets built or maintained. Understanding where the money comes from — and where it goes — is the first step toward holding government accountable for how it uses your money.
Source: The Accra Daily Mail
Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of The Accra Daily Mail, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
