The numbers from the 2026 Mid-Year Budget review are encouraging. Government generated GH¢124.8 billion in revenue and grants in the first half of the year, just 1.03 per cent below the GH¢126.1 billion target.
More importantly, it spent far less than it planned. Total cash expenditure at the end of June stood at GH¢136.9 billion, well below the GH¢172.5 billion target. For years, budgets were missed on both sides — revenue shortfalls and expenditure overruns. That created arrears, debt, and inflation.
The revenue performance was mixed, but the underlying story is positive. Taxes on income and property came in at GH¢57.5 billion, beating the GH¢53.2 billion target by GH¢4.3 billion. The driver was stronger company tax receipts. That reflects improved private sector profitability, helped by falling interest rates and a stable cedi. When businesses make more and pay more, it is a sign that the real economy is responding to policy.
Other revenue lines were softer. Upstream oil and gas revenue was GH¢6.3 billion against a GH¢9.1 billion target. Non-oil, non-tax revenue was GH¢9.8 billion, slightly below the GH¢11.0 billion target.
The bright spot was the Energy Sector Levy. It brought in GH¢7.7 billion against a target of GH¢4.2 billion. The Energy Debt Recovery Levy alone contributed at least GH¢1 billion every month. That money is critical for clearing legacy debts in the energy sector and for preventing a return to dumsor and fiscal slippages.
Overall, the message is clear: domestic tax mobilisation is resilient. Even with oil underperforming, government is collecting more from the parts of the economy it can control.
That is fiscal discipline in practice. Budget, authorise, spend, pay. No off-balance-sheet surprises.
Presenting the review in Parliament yesterday, Finance Minister, Dr Cassiel Ato Forson, said the outcome reflected “the administration’s resolve to take difficult decisions, implement them consistently and maintain fiscal discipline.” If sustained, that discipline is what will keep the economic recovery on track.
The Minister described the first-half performance as “the strongest recorded in many years.” Revenue was broadly on track.
Expenditure was below target for the right reasons. Fiscal balances exceeded programme targets. The primary surplus outperformed expectations. Interest costs continued to decline.
Translated simply: government took in almost what it planned, and spent much less than it planned, without creating new debts.
The combined effect is more fiscal space. The GH¢6.9 billion saved on interest alone can fund schools, clinics, roads, or be used to pay down debt faster.
Clearing GH¢5.3 billion in arrears also restores confidence with contractors and suppliers who have been owed for years. It also strengthens the case with the IMF and with investors. A government that hits revenue targets and underspends responsibly is a government that can be trusted with debt and with policy.
Good first-half numbers do not mean the job is done. Oil revenue missed by GH¢2.8 billion. With global prices volatile, government cannot budget on hope. It must diversify non-oil revenue further and protect the gains in company tax.
Interest savings and lower compensation must be redirected to growth — agriculture, industry, infrastructure, and social protection. Austerity without investment kills jobs. Discipline without development loses public support. The Energy Debt
Recovery Levy also deserves special mention. It is performing, but Ghanaians will support it only if they see the debt being retired and power supply stabilised. Transparency on how every cedi is used is non-negotiable.
Removing ghost names is not easy. Saying no to procurement without budget cover is not popular, but it is necessary. The public will judge this government not just by macro numbers, but by what changes in their lives: lower prices, more jobs, better services. Fiscal discipline is the foundation for that; it is not the end goal.
The Daily Graphic urges government to stay the course. Do not use the fiscal space to return to old habits. Use it to invest in growth, protect the vulnerable, and reduce debt faster.
The economy is responding because policy is consistent. Let the second half of 2026 prove that this was not a one-off. Let it prove that we have learnt the lesson of 2022: fiscal discipline is not optional; it is survival.
If we keep this discipline, the recovery will be real, and it will last.
