Gov’t to double road spending in 2026 budget

The government has announced plans to double its spending on road infrastructure in the 2026 national budget, as part of a broader strategy to sustain Ghana’s economic recovery, create jobs, and promote inclusive growth.

Deputy Minister of Finance, Mr Thomas Nyarko Ampem, revealed this during a stakeholder consultation in Accra ahead of the presentation of the 2026 Budget Statement and Economic Policy to Parliament.

He said the government would leverage recent macroeconomic gains to expand development spending, particularly in the roads sector, to boost productivity, facilitate trade, and enhance national connectivity.

“The government remains steadfast in sustaining the momentum of economic recovery and building a resilient economy that delivers opportunity for all Ghanaians,” Mr Ampem stated.

According to him, more than 60 road projects are already underway across various regions to open up both rural and urban economies.

He explained that increased infrastructure investment is central to job creation and economic inclusion, as efficient transport systems are critical enablers for trade, logistics, and industrial growth.

Mr Ampem noted that the decision to scale up capital expenditure in 2026 is underpinned by strong macroeconomic fundamentals achieved over the past year.

He cited a primary balance surplus of 1.4 per cent of GDP, a reduction in the fiscal deficit to 1.5 per cent, and a decline in public debt to 46.8 per cent of GDP as of August 2025, achievements he said reflected prudent fiscal management.

Inflation, he disclosed, has fallen sharply to 9.4 per cent, down from over 20 per cent a year earlier, while Treasury bill rates have dropped by 1,300 basis points, lowering the cost of government borrowing.

“The Ghana cedi has also appreciated significantly, stabilising the exchange rate and reducing import costs for construction materials and equipment.

“These achievements are not mere statistics. They provide real fiscal space to direct resources into productive sectors that improve livelihoods,” he emphasised.

Mr Ampem further explained that Ghana’s upgraded sovereign outlook by international credit rating agencies such as Moody’s and Fitch reflects renewed investor confidence, while the ongoing IMF-supported programme has strengthened policy credibility.

The Deputy Minister said the 2026 budget will not only focus on infrastructure but also scale up social spending in health, education, and social protection to ensure inclusive and equitable development outcomes.

“Our focus areas include economic stabilisation and fiscal discipline, infrastructure and social development, social protection, education and youth empowerment, as well as employment creation,” he outlined.

Mr Ampem stressed that sustained national development requires a dual approach – expanding infrastructure to drive growth while investing in people to secure long-term prosperity.

He also highlighted the importance of inclusive policymaking, noting that ongoing consultations with key stakeholders, including representatives from the financial sector, civil society, academia, and private businesses, are crucial to shaping the 2026 budget.

“Today’s engagement provides an avenue for government to listen to your perspectives, your proposals, and your expectations as we shape the 2026 budget,” he noted.

He also explained that the stakeholder consultation process aligns with Article 179 (1) of the 1992 Constitution and Section 21 of the Public Financial Management Act, 2016 (Act 921), which mandate broad participation in the national budget process.

Expected to be presented to Parliament in November 2025.