The Minister for Finance, Hon. Dr. Cassiel Ato Forson, has reaffirmed the government’s commitment to uphold the virtues of social protection in light of the quest to pursue fiscal consolidation.
Delivering the 2026 budget on the floor of parliament, the Minister for Finance emphasized that while undertaking fiscal consolidation to ensure economic stability and reduce deficits, the government remained committed to social welfare.
He stated that the government safeguarded and even increased social spending, prioritizing support for vulnerable households, adding that this was to ensure some level of relief from the hardships endured for years.
“Expenditure on social protection programs remained on track, reaffirming the government’s commitment to protecting the poor and vulnerable even as we consolidate fiscal gains.”
Hon. Dr. Cassiel Ato Forson, Minister for Finance
The minister further emphasized that despite the pursuit of fiscal prudence, flagship interventions in education, health, and livelihood empowerment remained uninterrupted.
He stated that the President Mahama-led government prioritized inclusive development by maintaining critical social programs that uplift communities and protect vulnerable populations.
He further explained that these sustained efforts ensured that economic discipline did not hinder progress in key human development areas.
Hon. Ato Forson emphasized that by balancing financial responsibility with social investment, the government reinforced its commitment to equitable growth, enabling citizens to access essential services and opportunities even during periods of fiscal consolidation.
He stated that “allocations to social-protection programs increased to 0.9 percent of GDP, up from 0.6 percent in 2024.”
The Minister for Finance highlighted key social protection programs such as the Livelihood Empowerment Against Poverty (LEAP) program, the Ghana School Feeding Programme, and the National Health Insurance Fund, among others.
He further explained that the Livelihood Empowerment Against Poverty (LEAP) program continued to apply automatic inflation indexation to its benefits, ensuring that their real value was preserved over time.
This mechanism, he noted, protected beneficiaries from the eroding effects of rising prices, maintaining the program’s effectiveness in supporting vulnerable households amidst economic fluctuations.
“Beneficiary validation continued, with over 58,000 households recertified, and an expanded target of 400,000 households is expected by March 2026.”
Hon. Dr. Cassiel Ato Forson, Minister for Finance
The minister also stated that the “Ghana School Feeding Programme received a 33 percent budget increase,” which significantly enhanced its operational efficiency.
He also explained that this boost facilitated the prompt payment of caterers, ensuring their continued commitment and service, adding that it led to noticeable improvements in meal quality, contributing to better nutrition and learning outcomes for schoolchildren nationwide.
For the health sector, Dr. Ato Forson stated that the uncapping of the National Health Insurance Fund, enabled by the Earmarked Funds Capping and Realignment Act, marked a significant policy shift.
This move, he explained, empowered the National Health Insurance Scheme (NHIS) to settle outstanding arrears owed to healthcare providers, restoring confidence and improving service delivery.
The minister further added that the uncapping of the National Health Insurance Fund facilitated the procurement and distribution of essential vaccines, strengthening public health interventions.
He emphasized that it also paved the way for the launch of the Free Primary Healthcare initiative, aimed at expanding access to basic health services for all citizens, especially the underserved, thereby promoting equity and improving health outcomes nationwide.
“Education spending increased, and the Capitation Grant was raised by 73 percent. Also, arrears accumulated in 2023 were fully cleared. These targeted interventions reflect our conviction that economic stability must translate into social progress.”
Hon. Dr. Cassiel Ato Forson, Minister for Finance
Dr. Ato Forson further emphasized that these outcomes affirm that the government’s expenditure management framework is functioning effectively, guided by principles of efficiency, transparency, and sustainability.
He added that the ability to balance fiscal discipline with social investment highlights a well-structured approach that promotes accountability, optimizes resource allocation, and ensures long-term economic resilience while safeguarding essential public services.
“The balance between fiscal restraint and social responsibility remains the cornerstone of our recovery.” He further reiterated.
He therefore reassured the government’s commitment to strengthening security and social sectors for inclusive growth.
This measure, he noted, would be focused on modernizing education, improving healthcare access, retooling security forces, and extending electricity, water, and sanitation to every community, while protecting the environment for generations to come.
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