Ghana could save GH₵1.7 billion annually by reforming expensive social programmes and redirecting funds toward industries that create jobs, the Ghana Association of Banks Chief Executive Officer has proposed.
John Awuah, Chief Executive Officer of the Ghana Association of Banks, has urged the government to make difficult but economically sound decisions in the 2026 National Budget to strengthen the country’s fiscal position.
Awuah proposed scrapping or reforming four major social intervention programmes to free up fiscal space. These include the Free First Year Tertiary Education (No Fees Stress Policy), Trainee Nurses Allowance, Teacher Trainee Allowance, and a review of the Free Senior High School Policy.
According to his breakdown, eliminating the No Fees Stress Policy could save approximately GH₵450 million annually. Scrapping the Trainee Nurses Allowance could yield savings of about GH₵480 million yearly, while removing the Teacher Trainee Allowance could free up around GH₵210 million. Reviewing the Free SHS Policy could save an estimated GH₵600 million per year.
“Please be bold and take some difficult decisions,” Awuah said in advice to Finance Minister Dr. Cassiel Ato Forson.
The banking executive argues that Ghana must shift from consumption spending to production investment. He believes many current social spending programmes, while well intentioned, have become fiscally unsustainable with limited economic returns.
Awuah proposes channeling the saved funds into targeted industrial transformation. He recommends identifying up to 10 companies with capacity to scale manufacturing operations in import substitution sectors such as agro processing, pharmaceuticals, and light manufacturing. Each company would receive concessionary loans at 5 percent interest, with at least GH₵150 million for equipment and inputs.
He contends this strategy would create thousands of jobs for graduates, broaden the tax base, strengthen the local currency by reducing import dependence, and foster long term economic resilience. Workers and companies would contribute to government revenue through taxation, he added.
Awuah praised Finance Minister Forson for what he described as a strong start in office but emphasized the need for continued fiscal consolidation. He urged the government to curb wasteful spending and work aggressively on corrupt procurement practices, acknowledging that his suggestions may be politically unpopular but are economically necessary.
The proposal comes at a time when the government has faced pressure over various social programmes. In March 2025, the government uncapped the Ghana Education Trust Fund to provide full funding for the Free SHS programme, allocating GH₵3.5 billion. The 2025 budget also earmarked GH₵203 million for teacher trainee allowances and GH₵480 million for nursing trainee allowances.
Earlier in 2025, there were reports suggesting the government planned to scrap teacher trainee allowances, but the Ministry of Education denied these claims, stating the allowances would be maintained until a definitive agreement is reached with all stakeholders.
Whether the government will adopt these proposals in the 2026 budget remains to be seen.