The government is planning to spend a total of GH¢389.2 billion, equivalent to 21.6 per cent of GDP, in the 2027 fiscal year, with a decisive shift towards productive expenditure and early debt repayment, Finance Minister Dr Cassiel Ato Forson has announced.
Presenting the 2027 Budget Statement and Economic Policy to Parliament on Thursday, Dr Forson outlined that of the total expenditure on a cash basis, GH¢100.4 billion has been allocated for capital expenditure, representing 5.6 per cent of GDP. He emphasised that this marks a deliberate strategic shift away from a pattern of spending centred on consumption.
“Mr. Speaker, this marks a decisive shift towards productive expenditure, putting more of Ghana's money into the assets that will expand production, create jobs and raise incomes,” he said. When capital expenditure financed through transfers to other government units is included, total capital expenditure rises to GH¢120.5 billion, equivalent to 6.7 per cent of GDP.
The Minister detailed that the 2027 capital expenditure is over GH¢37 billion or 61 per cent more than the GH¢61 billion allocated for interest payments, and over GH¢5.6 billion or 6 per cent more than the GH¢92.7 billion allocated for wages and salaries.
Total compensation for employees is estimated at GH¢104.1 billion, while interest payments stand at GH¢61 billion, comprising GH¢51.5 billion for domestic obligations and GH¢9.5 billion for external obligations.
Transfers to statutory and earmarked funds will amount to GH¢76.5 billion, and GH¢13.9 billion has been provided for the clearance of arrears, including GH¢4.3 billion for legacy arrears owed to independent power producers.
To finance the GH¢389.2 billion expenditure, the government projects total revenue and grants at GH¢323.4 billion, equivalent to 17.9 per cent of GDP. This will result in an overall deficit on a cash basis of GH¢65.8 billion, equivalent to 3.6 per cent of GDP.
The overall budget deficit on a commitment basis is projected at GH¢51.9 billion, with a primary balance surplus of GH¢9.0 billion, equivalent to 0.5 per cent of GDP.
A major highlight of the budget is the early redemption of debt. Dr Forson announced that the government will pay off GH¢29 billion of DDEP bonds falling due in February 2027, effective November 12, 2026, as the Cedi Sinking Fund Account holds enough to cover the full principal repayment.
“Together, that is more than GH¢36 billion in debt to be cleared ahead of schedule. More than GH¢36 billion paid back early. More than GH¢36 billion less debt by December 2026. That is what discipline delivers!” he stated.
Key allocations under the 2027 expenditure framework include GH¢30.0 billion for the New Economy programme, GH¢29.8 billion for the Big Push programme, GH¢48 billion for the Ministry of Education, and GH¢40.3 billion for the Ministry of Health.
The government has also allocated GH¢104.1 billion for compensation of employees and GH¢13.7 billion for goods and services.