Ghana’s health budget for 2026 has increased significantly, but it remains below regional and global financing benchmarks required to achieve universal health coverage and key health targets under the Sustainable Development Goals, according to the Center for Health Policy and Development-Africa (CHPDA).

The policy think tank says the government has allocated GHS 34.2 billion to the health sector in 2026, representing a 23 percent nominal increase from 2025 and a real increase of about 15 percent, after accounting for projected inflation of 8 percent. Despite the increase, CHPDA notes that Ghana’s health spending continues to fall short of the Abuja Declaration target of allocating 15 percent of total government expenditure to health, as well as the World Health Organization benchmark of health spending equivalent to 5 percent of GDP.

According to CHPDA’s analysis, health spending in 2026 accounts for 9.6 percent of the total national budget, up marginally from 9.5 percent in 2025. As a share of gross domestic product, the health budget has risen slightly to 2.1 percent, compared with 2 percent the previous year. When the National Health Insurance Levy is excluded, health spending falls to 6.4 percent of total government expenditure, underscoring what the organisation describes as a persistent financing gap.

Budget execution raises concerns

While welcoming the increase in allocations, CHPDA warns that persistent weaknesses in budget execution could undermine the expected gains. The organisation points out that actual health spending has consistently fallen below approved budgets over the past three years. In 2022, only about 60 percent of the approved health budget was spent, while in 2023 expenditure reached approximately 75 percent of the approved allocation. CHPDA cautions that such under-execution could delay health programmes and weaken progress towards national and global health targets.

Domestic funding grows as donor support declines

CHPDA’s analysis shows that the 2026 health budget will be financed predominantly from domestic sources as external funding continues to decline. Government of Ghana funding is projected to account for 48 percent of the health budget, while internally generated funds will contribute 18 percent. The National Health Fund, including the National Health Insurance Levy, is expected to make up 33 percent, with donor grants and foreign loans contributing just 1 percent.

Compared with 2025, government funding for health has increased by 29 percent, while internally generated funds have risen by 35 percent and revenue from the National Health Insurance Levy by 15 percent. In contrast, development partner funding is projected to decline by 26 percent. CHPDA cautions that the growing reliance on internally generated funds, which include user fees, raises equity concerns and could increase out-of-pocket payments for households.

The organisation cites recent research showing that more than 16 percent of households that accessed health services experienced catastrophic health expenditure, with a high proportion of these households also facing food insecurity.

Compensation dominates health spending

According to CHPDA, compensation for health workers accounts for 48 percent of the 2026 health budget, making it the largest expenditure item. While acknowledging the importance of adequate staffing, the think tank warns that rising compensation costs could crowd out spending on essential goods, services and capital investments.

CHPDA notes that goods and services account for 13 percent of the health budget, while capital expenditure represents just 6 percent, despite an 83 percent increase in capital spending compared with 2025. The organisation argues that the share of capital investment remains insufficient to address infrastructure gaps, particularly in primary healthcare.

Infrastructure and equity gaps

CHPDA’s analysis of capital expenditure indicates a strong focus on secondary and tertiary health facilities, with relatively limited investment in primary healthcare infrastructure. The organisation highlights evidence showing that health facilities remain unevenly distributed, with 73 percent of rural communities lacking a health facility within a five-kilometre radius, compared with 24 percent in urban areas.

The think tank also warns that delays in completing projects under initiatives such as Agenda 111 could result in inefficiencies and wasted public resources if not urgently addressed.

Mental health and prevention underfunded

CHPDA further notes that funding for mental health and digital health remains limited despite growing demand. While GHS 2.26 billion has been allocated to the Ghana Medical Trust Fund to support the treatment of non-communicable diseases, the organisation observes that prevention efforts receive little dedicated funding. According to CHPDA, there are no clear budget lines for disease prevention, epidemic preparedness or health promotion programmes.

Policy recommendations

The Center for Health Policy and Development-Africa is calling on the government to establish a national preventive health fund focused on non-communicable disease prevention, disease surveillance, maternal and child health and environmental health. The organisation also recommends the development of a national digital health investment plan to improve efficiency and service delivery.

CHPDA further urges increased funding for mental health services, improved financing for medical supplies both within and outside the National Health Insurance Scheme, and greater investment in primary healthcare infrastructure, particularly in rural and underserved communities.

Outlook

While acknowledging that the 2026 health budget represents progress, CHPDA concludes that Ghana’s health financing remains below regional and global benchmarks. The organisation warns that without sustained increases in funding, improved budget execution and a stronger focus on prevention and equity, Ghana risks falling short of its Universal Health Coverage and SDG 3 commitments by 2030.