Finance Minister Dr Cassiel Ato Forson has told Parliament that the government's fiscal correction programme significantly reduced public spending in 2025 while maintaining economic growth, describing the outcome as a major step towards restoring fiscal discipline.
Presenting the 2026 Mid-Year Fiscal Policy Review on Thursday, July 23, 2026, Dr Forson said primary expenditure fell from 18.7 per cent of Gross Domestic Product (GDP) in 2024 to 13.2 per cent in 2025.
According to him, the reduction was achieved by resetting government expenditure to 2023 nominal levels and eliminating what he described as wasteful spending that had weakened public financial management over the years.
"The primary balance also improved from a deficit of 2.9% of GDP in 2024 to a surplus of 2.5% of GDP in 2025, placing public debt firmly on a downward trajectory," he told Parliament.
The Finance Minister said the turnaround sends "an unmistakable signal to Ghanaians, investors and development partners that fiscal discipline is the new order."
Dr Forson also announced that the government had recalibrated its programme with the International Monetary Fund (IMF), shifting the focus from revenue-led fiscal consolidation to expenditure-led consolidation, which he said distributes the burden of economic adjustment more fairly.
He further noted that Parliament had amended the Public Financial Management Act to entrench a binding fiscal rule requiring the government to maintain an annual primary surplus of at least 1.5 per cent of GDP and reduce the country's debt-to-GDP ratio to 45 per cent by 2034.
The Finance Minister outlined several institutional reforms introduced to strengthen public financial management and improve accountability.
These include the establishment of a Value for Money Office to enhance expenditure efficiency, the creation of a Fiscal Council to strengthen fiscal oversight and transparency, a comprehensive audit of government payables, and amendments to the Public Procurement Act requiring commitment authorisation before procurement processes can begin.
Dr Forson also highlighted measures aimed at reducing the cost of government, revealing that the number of ministers had been reduced from a peak of 123 to 60, while the number of ministries had been cut from 30 to 23.
"A leaner government is not merely good politics, but is also a sound fiscal policy," he said.
He added that the government had also reduced non-essential expenditure on foreign travel, workshops, conferences and the procurement of official vehicles.
According to the Finance Minister, the Ghana CARES top-up and U-Start programmes have also been discontinued, with resources being redirected to other priority areas as part of efforts to strengthen fiscal sustainability and improve the management of public finances.
Background
Minister of Finance Dr Cassiel Ato Forson is presenting the 2026 Mid-Year Budget Review to Parliament on Thursday, July 23, 2026.
The review, required under Ghana's public financial management laws, will provide an update on the economy, government revenue and expenditure, debt servicing, and the fiscal outlook for the remainder of 2026.
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