Finance Minister Dr Cassiel Ato Forson has presented a 2027 Budget with total expenditure of GH¢389.2 billion, pledging that the government will introduce no new taxes in the coming fiscal year.
The budget allocates GH¢30 billion to the first year of the government’s New Economy programme and announces the early redemption of GH¢29 billion in Domestic Debt Exchange Programme (DDEP) bonds due in February 2027.
Dr Forson presented the budget to Parliament on Thursday evening, November 12, describing his address as an abridged version of the full Budget Statement.
No new taxes
“This 2027 Budget will not introduce any new tax,” Dr Forson told Parliament.
Under the proposed measures, solar panels and batteries will be exempted from import duties and Value Added Tax (VAT). The exemption forms part of the incentives under the 24-Hour Economy programme, with the Finance Minister encouraging households, farmers and electric-vehicle owners to adopt solar energy.
The government will also review the Income Tax Act, the Revenue Administration Act, stamp duty administration and the Communications Service Tax framework in 2027.
One adjustment will affect small-scale gold sellers. Following consultations with industry players, the government will apply a 3 per cent discount to the small-scale gold it purchases in 2027.
Dr Forson said the cost of building Ghana’s reserves through gold purchases had declined from 16 per cent in 2025 to 5 per cent in 2026. The new discount is expected to reduce the cost to 2 per cent.
Revenue, spending and deficit
Revenue and grants are projected at GH¢323.4 billion in 2027, representing 17.9 per cent of Gross Domestic Product (GDP).
Non-oil tax revenue is expected to contribute GH¢256.1 billion, while oil revenue is projected at GH¢15.5 billion.
Total government expenditure is estimated at GH¢389.2 billion, equivalent to 21.6 per cent of GDP.
Wages and salaries account for GH¢92.6 billion, while interest payments are projected at GH¢61 billion. Of the interest bill, GH¢51.5 billion will go towards domestic debt and GH¢9.5 billion towards external debt.
Capital expenditure is put at GH¢100.4 billion, representing 5.6 per cent of GDP. However, a later section of the budget speech gives a figure of GH¢98.3 billion. When projects financed through transfers to other public institutions are included, capital spending rises to GH¢120.5 billion.
The government has also allocated GH¢13.9 billion towards arrears clearance, including GH¢4.3 billion owed to Independent Power Producers (IPPs).
The cash deficit is projected at GH¢65.8 billion, equivalent to 3.6 per cent of GDP. On a commitment basis, the deficit is expected to be GH¢51.9 billion, with a primary surplus of GH¢9 billion, or 0.5 per cent of GDP.
Economic targets for 2027
The government is targeting overall economic growth of at least 5.2 per cent in 2027, with non-oil growth expected to reach at least 5.7 per cent.
End-year inflation is projected at 8 per cent, with a margin of two percentage points either side. International reserves are expected to cover at least six months of imports.
By 2030, the government aims to achieve economic growth of about 8 per cent and reduce unemployment to below 8 per cent. The budget speech puts the unemployment rate at approximately 12.8 per cent in 2025.
How the economy performed in 2026
Ghana’s economy grew by 6.2 per cent in the first half of 2026, exceeding the annual growth target of 4.8 per cent. Inflation stood at 5.5 per cent in October.
International reserves reached US$12.7 billion at the end of September, equivalent to approximately 4.5 months of import cover.
The Bank of Ghana’s policy rate declined from 21.5 per cent in September 2025 to 14 per cent in September 2026.
Average bank lending rates also fell from 22.2 per cent to 15.94 per cent in the year to October, while the 91-day Treasury bill rate dropped from 11.09 per cent in December to 4.56 per cent.
Public debt stood at GH¢759.3 billion at the end of October, representing 47.5 per cent of GDP.
Dr Forson said the economic performance had been sustained despite external and domestic challenges, including rising oil prices linked to the conflict in the Middle East, the April fire that affected the 1,020MW Akosombo power generation facility, and the June floods.
GH¢29bn DDEP bond early redemption
Dr Forson announced the early redemption of GH¢29 billion in DDEP bonds due in February 2027, effective Thursday, November 12.
He disclosed that the Cedi Sinking Fund held GH¢29 billion as of Wednesday, November 11, providing funds for the early payment.
“Your cash is ready. Come for your money!” he told bondholders.
The government also intends to settle a US$590 million Eurobond obligation due on January 2, 2027, by December 31, 2026.
Dr Forson said the two repayments would amount to more than GH¢36 billion in debt cleared ahead of schedule.
Approximately GH¢53 billion in DDEP payments will fall due in February and August 2027 combined.
The New Economy programme
The government plans to invest US$10 billion in the eight pillars of its New Economy programme between 2027 and 2030.
For 2027, an allocation of GH¢30 billion, equivalent to 1.5 per cent of GDP, has been earmarked for the initiative.
According to the Finance Minister, the funding will come from a one-percentage-point reduction in the primary surplus target, alongside an additional 0.5 per cent of GDP expected from tax reforms already approved by Parliament and improved revenue compliance.
Commercial agriculture will receive the largest allocation of US$3 billion, followed by energy with US$2.2 billion and critical minerals with US$1.5 billion.
Tourism and creative arts, textiles and garments, and pharmaceuticals will each receive US$1 billion, while technology has been allocated US$300 million.
The programme also sets deadlines for reducing imports and increasing local production. Commercial rice imports are expected to be banned by 2030, while all cocoa is to be processed locally by the same year. Raw small-scale gold exports are scheduled to end in December 2028.
Raw manganese and bauxite exports will also be prohibited by the end of 2030.
The government intends to prioritise locally manufactured goods in public procurement. Public funds used to purchase rice, uniforms and hospital textiles will be directed towards Ghanaian-made products. The same approach will apply to medicines where local manufacturers can meet the required quality standards.
In the energy sector, construction of a state-owned 1,450MW thermal power plant at Kafodzidzi-Abrobeano in the Central Region is expected to begin in December.
A 600MW solar power plant supported by 2,000 megawatt-hours of battery storage is also planned.
The government intends to phase out emergency power plants by 2030 and reduce electricity generation costs from approximately 16 US cents per kilowatt-hour to 8 US cents or below.
A US$200 million nuclear-readiness programme is also scheduled to run from January 2027 to December 2028.
Major allocations across sectors
The education sector has been allocated GH¢48 billion, including GH¢11.2 billion for the Ghana Education Trust Fund (GETFund) and GH¢1.37 billion towards secondary education reforms aimed at ending the double-track system.
The health sector will receive GH¢40.3 billion. This includes GH¢10.2 billion for the National Health Insurance Scheme (NHIS), GH¢2.6 billion for MahamaCares and GH¢6.8 billion to begin the construction of new specialist, regional and district hospitals.
The Ministry of the Interior has been allocated GH¢15.5 billion, while the Ministry of Defence will receive GH¢10.1 billion. The defence allocation includes GH¢405 million towards the acquisition of two offshore patrol vessels for the Navy.
The Big Push road infrastructure programme will receive GH¢29.8 billion, although an earlier figure in the budget speech puts the allocation at GH¢28 billion. The Ministry of Roads and Highways will receive an additional GH¢11.3 billion.
The District Assemblies Common Fund has been allocated GH¢10.8 billion.
The proposed Greater Accra Regional Market at Agbogbloshie and Phase Two of the Kejetia Market project will each receive GH¢685 million.
Other allocations include GH¢2.1 billion for the School Feeding Programme and GH¢1.1 billion for the Livelihood Empowerment Against Poverty (LEAP) programme.
National Service allowances have been allocated GH¢1 billion, while lifting the cap on youth employment funding is expected to release an additional GH¢1 billion.
The National Anti-Illegal Mining Operations Secretariat (NAIMOS) will receive GH¢200 million, with GH¢400 million allocated for land reclamation.
A separate GH¢13 billion has been earmarked to address energy sector payment shortfalls.
The Electoral Commission has been allocated GH¢1.2 billion, of which GH¢900 million will support the District Level Elections and a constitutional referendum.
Other allocations include GH¢600 million towards the construction of 10 regional stadiums, GH¢69 million for preparations towards establishing a national airline and GH¢165 million for the 24-Hour Economy Secretariat.
Accra–Kumasi Expressway and Western Corridor Railway
The Finance Minister disclosed that the Accra–Kumasi Expressway account held US$2.2 billion and GH¢9 billion as of Wednesday, November 11, bringing the total to approximately US$3 billion.
The engineer’s estimate for the 198.7-kilometre, six-lane expressway now stands at US$2.98 billion.
Tenders are expected to close by the end of 2026. Dr Forson said the revised estimate was more than US$1 billion below the original projected cost, with the difference expected to support the Accra Orbital Expressway project.
The government will also use petroleum revenue and mineral royalties generated in 2027 and 2028 to finance the Western Corridor Railway, which will run from Takoradi through Nsuta and Awaso to Nyinahin.
Dr Forson said the government would not borrow to finance the railway project.
In addition, the government plans to introduce a Natural Resource Revenue Management Act and a Loans Act.
The Minerals Income Investment Fund (MIIF) and the Ghana Infrastructure Investment Fund are also expected to be merged into a new Ghana Sovereign Wealth Fund.
Issues not addressed in the budget speech
The Finance Minister’s abridged presentation did not mention a new national daily minimum wage for 2027, a public-sector salary increase or any changes to existing fuel levies.
Further details on these matters may be contained in the full 2027 Budget Statement.
By:Rachael Djabakie