The Mahama administration will not seek additional funding through a supplementary budget for the 2026 fiscal year, opting instead to reallocate existing resources to priority sectors while committing to finance a permanent solution to Ghana’s recurring flood crisis in the 2027 Budget.
Presenting the 2026 Mid-Year Fiscal Policy Review to Parliament on Thursday, Minister for Finance Dr. Cassiel Ato Baah Forson said the government would maintain fiscal discipline by realigning expenditures rather than increasing the overall budget, even as it responds to the devastating floods that struck Accra on Wednesday night.
The announcement came as the Finance Minister opened his statement by acknowledging the destruction caused by the floods, which claimed lives, displaced families and damaged property across several communities in the capital.
“Mr. Speaker, I wish to acknowledge the disaster that struck last night. The floods and their cost are expensive,” Dr. Forson told Parliament.
He disclosed that, on the instructions of President John Dramani Mahama, government had swiftly mobilised relief efforts by visiting affected communities, releasing emergency funds to support victims and making additional resources available for ongoing dredging works and the construction of critical drainage infrastructure.
However, Dr. Forson stressed that government intends to move beyond emergency interventions by pursuing a long-term engineering solution to end the perennial flooding that has plagued Accra and other parts of the country.
He announced that President Mahama has directed the Ministry of Works, Housing and Water Resources to develop a comprehensive national flood control programme.
“The President has directed the Ministry of Works, Housing and Water Resources to develop a comprehensive and permanent solution to flooding in the country,” he said.
According to the Finance Minister, funding for implementing the programme will be incorporated into the 2027 national budget, signalling government’s intention to address the root causes of flooding rather than continue with short-term responses.
“The necessary funding for the implementation of this permanent solution will be provided in the 2027 budget,” he added.
The policy announcement comes amid renewed calls for decisive action to tackle flooding, which continues to be driven by inadequate drainage infrastructure, rapid urbanisation, encroachment on waterways and poor waste management.
Fiscal Discipline Without Additional Borrowing
A key policy message from the Mid-Year Review was government’s decision not to seek a supplementary appropriation for the remainder of 2026.
Instead, Dr. Forson said expenditure would be reprioritised to meet emerging national needs while preserving fiscal stability and supporting the country’s ongoing economic recovery.
The move is expected to reinforce government’s commitment to prudent public financial management and adherence to its fiscal consolidation programme.
Confidence in Economic Recovery
Despite the challenges posed by natural disasters, the Finance Minister expressed confidence in Ghana’s economic performance, describing the past 18 months as a period of strong progress.
“Mr. Speaker, I stand before this House with a deep sense of pride and confidence, born out of strong performance in the last one and a half years,” he said.
The 2026 Mid-Year Fiscal Policy Review is expected to update Parliament on revenue performance, expenditure execution, debt management and the broader macroeconomic outlook, while outlining government’s priorities for the remainder of the fiscal year.
By; Christian Kpesese
