The government is seeking approval from Parliament to spend GH¢389.2 billion in 2027 to finance its policies and programmes.
This will be equivalent to 21.6 per cent of the total value of goods and services produced in the country as measured by gross domestic product (GDP).
To help finance the programmes, the government is expected to generate GH¢323.4 billion, equivalent to 17.9 per cent of GDP, as revenue and grants in 2027.
For 2027, the government is targeting overall real GDP growth of at least 5.2 per cent, non-oil real GDP growth of 5.7 per cent, end-year inflation of between 6 and 10 per cent, a primary surplus of at least 0.5 per cent of GDP on a commitment basis and gross international reserves sufficient to cover not less than six months of imports.
These were contained in the 2027 Budget and Economic Policy of the government presented to Parliament yesterday.
The budget is on the theme: “The New Economy, New Ghana, Jobs and Prosperity.”
The government intends to use its policies as outlined in the budget to continue building hope and confidence in the people, create jobs, and continue with existing infrastructure projects such as the Accra-Kumasi Expressway, Western Corridor Railway Line and other key projects.
The Minister of Finance, Dr Cassiel Ato Forson, who laid the Budget and Economic Policy of the government for the 2027 financial year, the third of President John Dramani Mahama's administration, further outlined how the government intended to raise funds to finance its expenditure.
“Since 2025, we have acted to give families breathing space and businesses room to grow.
We abolished the E-Levy, the withholding tax on betting and lottery winnings, the COVID-19 Levy, the Emissions (Nwusie) Levy and VAT on motor vehicle insurance.
“This 2027 budget will not introduce any new tax.
Our task is to collect what is lawfully due, close the leakages and make the revenue system work better,” he said.
No new tax
“This 2027 Budget will not introduce any new tax,” Dr Forson said, stressing that the task would be to “collect what is lawfully due, close the leakages and make the revenue system work better”.
To provide clear rules, fair treatment and timely decisions for taxpayers, he said the government would review and modernise the Income Tax Act; the Revenue Administration Act; the Stamp Duty administration, and the Communications Service Tax framework.
Dr Forson said the Customs Tariff Grant Duty Concessions on selected raw materials, machinery and inputs would be reviewed to support local industry and introduce regulations to support consistent application of the reformed tax laws.
“Mr Speaker, we will also review Ghana’s Double Taxation Agreements in line with the United Nations’ Framework Convention on International Tax Cooperation to tackle evasion and treaty abuse while protecting legitimate investment,” he added.
Revenue, expenditure
Dr Forson said the total revenue and grants would comprise GH¢320.2 billion in domestic revenue and GH¢3.2 billion in project grants.
He explained that the domestic revenue target included GH¢256.1 billion in non-oil tax revenue, GH¢33.5 billion in non-oil non-tax revenue, GH¢15.5 billion in oil revenue and GH¢15.1 billion from other revenue sources.
On expenditure, he said, the government had allocated GH¢104.1 billion for compensation of employees, comprising GH¢92.6 billion for wages and salaries and
GH¢11.5 billion for social contributions, including pensions, gratuities and social security.
Dr Forson added that GH¢61 billion had been earmarked for interest payments, with GH¢51.5 billion going towards domestic obligations and GH¢9.5 billion for external debt obligations, while GH¢13.7 billion had been allocated for goods and services.
“The 2027 budget directs public resources towards the investments that will expand Ghana’s productive capacity and create jobs.
I will first set out the fiscal framework, followed by the allocations that will give effect to these priorities,” he said.
Deficit and financing
The Finance Minister stated that GH¢76.5 billion had been provided for statutory and earmarked funds, GH¢100.4 billion for capital expenditure and GH¢13.9 billion for arrears clearance, including GH¢4.3 billion to settle legacy debts owed to independent power producers.
He said the overall budget deficit on a cash basis was projected at GH¢65.8 billion, equivalent to 3.6 per cent of GDP, to be financed through domestic and external sources, with net domestic financing of GH¢84.9 billion and a net repayment of GH¢17.7 billion in external financing.
Dr Forson added that the deficit on a commitment basis was projected at GH¢51.9 billion, representing 2.9 per cent of GDP, while the primary balance was expected to record a surplus of GH¢9 billion, equivalent to 0.5 per cent of GDP.
“Every allocation in this budget has a destination and a purpose in the life of our nation. The money will go to the places where Ghanaians learn and earn, the farms that feed us and the services that care for us,” he said.
2026 Fiscal performance
Reviewing the 2026 fiscal performance, Dr Forson said provisional data for January to October showed that the government had recorded a primary surplus of 1.4 per cent of GDP on a commitment basis, putting it on course to achieve its full-year target of 1.5 per cent.
The Finance Minister said total revenue and grants for the first 10 months amounted to GH¢219.3 billion, exceeding the target of GH¢211.8 billion by 3.5 per cent, while domestic revenue reached GH¢218.2 billion, representing a 4.1 per cent improvement over target.
He stressed that the revenue gains had been achieved without introducing new taxes or increasing existing tax rates, while total expenditure of GH¢239 billion was 7.6 per cent below the programmed amount.
“Stronger revenue performance and firm expenditure controls supported these results,” he stated.
He said that the government had also cleared GH¢20.8 billion in legacy arrears.
On public debt, the minister said provisional debt stood at GH¢759.3 billion at the end of October 2026, representing 47.5 per cent of GDP, with 56.4 per cent owed domestically and the remaining 43.6 per cent externally.
