The Minister for Finance has announced that the total appropriation for the fiscal year ending 31st December 2026 amounts to GH¢357,105,639,079.87.
He made this known on Thursday, November 13, when he presented the 2026 Budget Statement and Economic Policy to Parliament.
According to the Minister, total expenditure on a commitment basis for 2026 has been programmed at GH¢302.5 billion, representing 18.9 percent of Gross Domestic Product (GDP). This marks a 20.1 percent increase over the 2025 projection of GH¢251.7 billion, which accounted for 17.8 percent of GDP.
He explained that the 2026 allocation reflects a careful balance between fiscal consolidation and strategic investment in infrastructure, human capital, and social protection.
Primary expenditure, excluding interest payments, is projected at GH¢244.7 billion, or 15.3 percent of GDP. Compensation of employees — covering wages, salaries, pensions, gratuities, and social security contributions — is expected to reach GH¢90.8 billion, equivalent to 5.7 percent of GDP. This figure reflects a negotiated 9 percent increase in base pay for public sector workers under the Single Spine Salary Structure.
The use of goods and services has been pegged at GH¢13.2 billion, representing 0.8 percent of GDP, to enhance efficiency in service delivery across Ministries, Departments, and Agencies (MDAs). Additionally, grants to other government units — including transfers to the GETFund, National Health Insurance Fund (NHIF), and District Assemblies Common Fund (DACF) — are estimated at GH¢63.6 billion, or 4.0 percent of GDP.
Interest payments are projected at GH¢57.7 billion, equivalent to 3.6 percent of GDP. Of this amount, GH¢50.1 billion will go toward domestic interest payments, while GH¢7.6 billion will cover external interest obligations. The Minister noted that ongoing debt restructuring and liability management initiatives are expected to reduce the interest burden over the medium term.
Capital expenditure (CAPEX) is projected at GH¢57.5 billion, representing 3.6 percent of GDP. This underscores government’s commitment to growth-driving investments. Of this, GH¢45.5 billion will be domestically financed — GH¢15.5 billion for MDAs and GH¢30 billion for the Big Push Infrastructure Programme — while GH¢12 billion will come from foreign-financed sources such as project loans and grants.
Other expenditures, including payments to Independent Power Producers (IPPs) and Energy Sector Levies Act (ESLA) transfers, are estimated at GH¢19.7 billion, or 1.2 percent of GDP.
Based on these allocations, the total appropriation for the 2026 fiscal year stands at GH¢357,105,639,079.87.
Source: www.kumasimail.com
