Ghana social protection programmes are receiving higher allocations in the 2026 budget, with the government expanding LEAP and increasing school feeding support, but the International Monetary Fund says assistance reaches too few people.
The assessment appears in the IMF’s Article IV consultation and report on Ghana’s proposed 36 month Policy Coordination Instrument.
The approved 2026 budget targeted a 9 percent increase in social spending compared with 2025.
LEAP coverage was expanded from 350,000 to 400,000 beneficiary households in June after an update of the programme’s register. Benefits were also linked to inflation, helping to prevent rising prices from steadily eroding the value of payments.
The daily Ghana School Feeding Programme grant per child rose by 33 percent to offset food inflation. Additional funding for the National Health Insurance Fund is intended to support claims payments, vaccines, essential medicines and the initial implementation of free primary healthcare.
The Capitation Grant received more money to support basic education and clear arrears dating from 2022.
IMF says the reach is still too small
Those increases did not settle the argument. The IMF said Ghana faces “substantial social protection gaps” and described benefit levels as “low relative to needs.”
Its report noted that even after LEAP’s planned expansion, the programme would cover only a fraction of the almost 40 percent of Ghanaians it estimates are living below the international poverty line.
Education presents another gap. Enrolment has improved, but participation at secondary level remains below Sustainable Development Goal targets, while education quality indicators continue to trail comparable countries.
The Fund said stronger safety nets are especially important while Ghana maintains fiscal discipline and households face uncertainty from policy changes, economic shocks and utility tariff adjustments.
LEAP target rises to 470,000 households
Under the proposed PCI reforms, the government plans to increase LEAP coverage to 470,000 beneficiary households by the end of June 2027 with World Bank support.
Automatic inflation adjustments will continue. The benefit structure will also be reviewed so payments can better reflect differences in household size and need rather than treating all recipients alike.
Monitoring will be widened beyond the older programmes. CLASS, the No Fees Stress initiative for first year tertiary students and MahamaCares will be included in the group of social interventions tracked under the arrangement.
MahamaCares is intended to provide medical insurance support for non communicable diseases, while CLASS focuses on livelihoods and productive assets.
Cash support considered for tariff shocks
The PCI also proposes targeted energy related cash transfers to protect vulnerable households when electricity and other utility prices are adjusted. No payment amount or rollout date was provided in the report.
Government officials agreed that better protection is needed. They committed to improving beneficiary registers, payment systems and monitoring while preserving the real value of assistance through higher allocations.
The bigger test is execution. A larger budget line matters, but timely payments reaching the right households will determine whether Ghana’s expanding programmes soften the next economic shock.
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