Ghana recorded a cash primary surplus equivalent to 0.50% of its Gross Domestic Product (GDP) by the end of June 2026. This means the government's revenue was sufficient to cover its spending, excluding interest payments on public debt, during the first half of the year.
This positive primary balance is a key indicator of fiscal discipline. It shows Ghana's progress in stabilizing its public finances and maintaining the credibility of its economic recovery programme. Data from the Bank of Ghana's July 2026 Summary of Economic and Financial Data confirmed these figures.
The achievement of a primary surplus fits into Ghana's broader economic narrative of fiscal consolidation. The country has been working to reduce its budget deficit and manage its substantial public debt. This positive development suggests that efforts to control non-interest expenditure are yielding results.
Total revenue and grants reached 7.70% of GDP by June 2026. Total government expenditure, however, stood slightly higher at 8.00% of GDP. The primary surplus calculation excludes interest payments, which remain a significant financial burden for the nation.
Once interest payments and other financing obligations were included, Ghana recorded an overall cash deficit of 0.80% of GDP by June 2026. This figure underscores the continuing pressure that debt-service costs place on the public finances. The underlying fiscal position, before these payments, remained positive.
The government's cash primary balance saw a moderation throughout the period. It declined from 1.10% of GDP in March to 1.00% in April, 0.70% in May, and finally 0.50% in June. This suggests that expenditure pressures increased as the year progressed, though the balance remained in surplus territory.
On a commitment basis, which accounts for expenditure obligations incurred but not necessarily paid, 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 cash and commitment balances highlights the timing of government payments.
Domestic revenue accounted for almost all government receipts, totaling 7.70% of GDP by June. Tax revenue alone contributed 6.50% of GDP. This highlights the critical role of domestic taxation in funding government operations and reducing reliance on external sources.
Total revenue and grants rose steadily from 1.10% of GDP in January to 7.70% in June. Expenditure followed a similar upward trend, increasing from 1.00% of GDP in January to 8.00% in June. Capital expenditure, which represents public investment, reached 1.40% of GDP by June, indicating a gradual acceleration in such spending.
The fiscal results confirm that the government maintained control over non-interest spending during the first half of the year. A sustained primary balance limits the need to borrow for routine operations. It also supports efforts to reduce debt vulnerabilities over time.
The persistence of an overall deficit, however, means interest payments and other obligations continue to strain the budget. Ghana's ability to maintain a primary surplus will depend on stronger revenue mobilization. It also requires careful expenditure management and continued restraint in accumulating new liabilities.
Net domestic financing reached 1.10% of GDP by June, up from 0.40% in April. This indicates an increased reliance on domestic sources to finance the overall budget deficit. The rise in domestic financing coincides with an increase in the public debt stock.
Ghana's total public debt stood at GHS 720.80 billion at the end of May 2026, equivalent to 45.10% of GDP. This compares to GHS 663.40 billion, or 41.50% of GDP, in January. Domestic debt increased to GHS 379.10 billion, representing 23.70% of GDP. External debt reached GHS 341.70 billion, equivalent to 21.40% of GDP.
Although the debt-to-GDP ratio remains below pre-restructuring levels, its upward movement is a concern. It emphasizes the importance of preserving primary surpluses and limiting additional borrowing. The first-half fiscal position presents a mixed but broadly positive picture for Ghana's economic stability.