- Ghana Records 0.50% Primary Surplus as Fiscal Deficit Narrows by June 2026
Ghana recorded a cash primary surplus equivalent to 0.50% of gross domestic product by the end of June 2026, as government revenue broadly kept pace with expenditure during the first half of the year.
Data contained in the Bank of Ghana’s July 2026 Summary of Economic and Financial Data showed that total revenue and grants reached 7.70% of GDP, while total government expenditure stood slightly higher at 8.00% of GDP.
The primary surplus, which excludes interest payments on public debt, indicates that government revenue was sufficient to cover non-interest expenditure during the period. It represents an important measure of fiscal discipline, particularly as Ghana seeks to stabilise its public finances and maintain the credibility of its economic recovery programme.
However, once interest payments and other financing obligations were included, government recorded an overall cash deficit of 0.80% of GDP by June 2026. The figures underline the continuing burden of debt-service costs on the public finances, even as the underlying fiscal position remains positive.
The government’s cash primary balance declined from 1.10% of GDP in March to 1.00% in April, 0.70% in May and 0.50% in June. The moderation suggests that expenditure pressures strengthened as the year progressed, although the balance remained in surplus.
On a commitment basis, which accounts for expenditure obligations incurred but not necessarily paid during the period, the primary surplus was stronger at 0.90% of GDP. The overall commitment balance, however, recorded a deficit of 0.50% of GDP.
The difference between the cash and commitment balances provides an indication of the timing of government payments and the build-up or settlement of outstanding obligations. While the commitment primary surplus remained positive, its decline from 1.20% of GDP in March and April to 1.00% in May and 0.90% in June also points to a gradual narrowing of the fiscal space.
Domestic revenue accounted for virtually all government receipts, amounting to 7.70% of GDP by June. Tax revenue contributed 6.50% of GDP, highlighting the central role of domestic taxation in financing government operations.
Total revenue and grants rose steadily from 1.10% of GDP in January to 2.20% in February, 3.60% in March, 4.90% in April, 6.10% in May and 7.70% in June.
Expenditure followed a similar trajectory, increasing from 1.00% of GDP in January to 2.60% in February, 3.90% in March, 5.00% in April, 6.70% in May and 8.00% in June.
Capital expenditure stood at 1.40% of GDP by June, up from 0.10% in January and 0.70% in April. The increase suggests a gradual acceleration in public investment, although capital spending remained a relatively modest component of overall expenditure.
The fiscal results indicate that the government maintained control over non-interest spending during the first half of the year. A positive primary balance is particularly significant for Ghana because it limits the need to borrow to finance routine government operations and supports efforts to reduce debt vulnerabilities over time.
Nevertheless, the overall deficit shows that interest payments and other below-the-line obligations continue to place pressure on the budget. Ghana’s ability to sustain a primary surplus will therefore depend on stronger revenue mobilisation, careful expenditure management and continued restraint in the accumulation of new liabilities.
Net domestic financing reached 1.10% of GDP by June, rising from 0.40% in April and 0.90% in May. The increase indicates that the government relied more heavily on domestic sources to finance its overall budget deficit and other fiscal obligations.
The rise in domestic financing comes amid an increase in the public debt stock. Ghana’s total public debt stood at GH¢720.80 billion at the end of May 2026, equivalent to 45.10% of GDP, compared with GH¢663.40 billion, or 41.50% of GDP, in January.
Domestic debt increased to GH¢379.10 billion, representing 23.70% of GDP, while external debt reached GH¢341.70 billion, equivalent to 21.40% of GDP.
Although the debt-to-GDP ratio remains below levels recorded before Ghana’s debt restructuring programme, the upward movement highlights the importance of preserving primary surpluses and limiting additional borrowing.
The first-half fiscal position presents a mixed but broadly positive picture. The government generated sufficient revenue to cover its expenditure before interest payments, demonstrating a measure of fiscal discipline. Yet the persistence of an overall deficit and the rise in domestic financing show that Ghana’s public finances remain exposed to debt-service and funding pressures.
Maintaining the primary surplus through the remainder of 2026 will require revenue growth to continue without a corresponding acceleration in recurrent expenditure. The quality of spending will also be critical, particularly as the government balances demands for infrastructure, social programmes and economic support against the need to preserve fiscal stability.
The June figures therefore provide evidence of progress in Ghana’s fiscal consolidation, but they also underline that the recovery remains dependent on sustained discipline. The primary surplus offers a buffer, although the overall deficit and rising debt stock leave limited room for policy slippage.
