Ghana’s fiscal deficit to widen to 3.9% a year through 2029 – S&P
Ghana's budget for 2026 aims to raise capital spending by 150%. But S&P said the government spending has been heavily curtailed since the end of 2024, particularly for capital projects.
S&P Global has predicted that Ghana's fiscal deficit will increase to 3.9% of GDP annually through 2029. This revision was prompted by revenue shortfalls in 2026 caused by a temporary fuel levy removal, the clearance of outstanding supplier debts, and increased capital expenditure. The government's 2026 budget plans a 150% rise in capital spending; however, implementation has been limited, especially for major projects which now require Finance Minister approval and prioritization.
Despite this, the agency notes that non-oil tax income, especially corporate tax and mineral royalties, is expected to rise due to a better business climate and lower inflation. Investor confidence is also bolstered by stable exchange rates. However, S&P warns that geopolitical tensions could spark inflation and currency fluctuations.
The government is hoping to boost revenue through tax system simplifications, reducing the number and rate of levies, and investing in digital tools to collect informal sector taxes and improve customs revenues.
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