2027 Budget: Government to spend GH¢389.2bn, allocates GH¢100.4bn for projects

The government has projected total expenditure of GH¢389.2 billion for 2027, with a significant portion expected to go into public sector salaries, interest payments on loans and infrastructure projects.

The amount, representing 21.6 per cent of Ghana's Gross Domestic Product (GDP), is expected to cover the government's spending on public services, statutory obligations, social programmes and development projects.

Finance Minister Dr Cassiel Ato Forson announced the projection when he presented the 2027 Budget and Economic Policy Statement to Parliament on Thursday, November 12.

“Total expenditure, on cash basis, is estimated at GH¢389.2 billion, equivalent to 21.6 percent of GDP,” he told Parliament.

A breakdown of the expenditure shows that GH¢104.1 billion has been allocated to compensate public sector employees, including GH¢92.6 billion for salaries and wages and GH¢11.5 billion for pensions, gratuities and social security contributions.

The government has also set aside GH¢61 billion to pay interest on its loans, comprising GH¢51.5 billion for domestic debts and GH¢9.5 billion for external debts.

Another GH¢76.5 billion will go into statutory and earmarked funds, while GH¢13.7 billion has been allocated for goods and services needed to run government institutions.

The budget also provides GH¢100.4 billion for capital expenditure, which covers investments in infrastructure and other development projects.

Of this amount, GH¢88.4 billion will be financed from domestic sources, while GH¢12 billion will come from external financing.

“We have allocated GH¢100.4 billion for capital expenditure, equivalent to 5.6 percent of GDP,” Dr Forson said.

Additionally, GH¢13.9 billion has been earmarked to clear outstanding government arrears, including GH¢4.3 billion owed to independent power producers.

The remaining allocations include GH¢2.3 billion for social benefits and GH¢17.2 billion for other expenditure, including energy sector payment shortfalls and transfers to GoldBod.