Finance Minister Dr Cassiel Ato Forson has presented a GH¢389.2 billion expenditure plan for 2027, ruling out the introduction of new taxes while committing GH¢30 billion to the first phase of the government's New Economy programme.
The Budget also provides for the early repayment of GH¢29 billion in restructured domestic bonds, alongside plans to settle a US$590 million Eurobond obligation before its January 2, 2027 maturity date.
Dr Forson presented the 2027 Budget Statement and Economic Policy to Parliament on Thursday evening, November 12, describing his address as an abridged version of the full document.
The complete 315-page Budget Statement was released alongside the presentation. However, some figures in the full document differ from those announced during the minister's address.
No new taxes, solar equipment exemptions
Dr Forson assured Parliament that the government would not introduce additional taxes in 2027, maintaining its position of easing the financial burden on households and businesses.
"This 2027 Budget will not introduce any new tax," he told the House.
As part of the relief measures, solar panels and batteries will be exempted from import duties and Value Added Tax (VAT). The initiative forms part of the incentives under the government's 24-Hour Economy programme, with the Finance Minister encouraging households, farmers and electric vehicle owners to consider solar energy.
The government will, however, undertake a review of key tax legislation in 2027, including the Income Tax Act, Revenue Administration Act, stamp duty administration and the Communications Service Tax framework.
Small-scale gold traders will also be affected by a proposed adjustment to the government's gold purchasing arrangements. Following consultations with industry stakeholders, the government will introduce a 3 per cent discount on small-scale gold purchases in 2027.
Dr Forson said the cost of building Ghana's gold reserves had declined from 16 per cent in 2025 to 5 per cent in 2026, with the latest measure intended to reduce it further to 2 per cent.
Revenue, expenditure and fiscal deficit
The full Budget Statement projects total revenue and grants of GH¢323.1 billion in 2027, compared with GH¢274 billion in 2026.
Non-oil tax revenue is expected to contribute GH¢255.8 billion, while oil and gas receipts are projected at GH¢15.5 billion.
Figures presented in Parliament were slightly higher, with Dr Forson announcing projected revenue and grants of GH¢323.4 billion and non-oil tax revenue of GH¢256.1 billion.
Government expenditure on a cash basis is estimated at GH¢389.2 billion, representing 21.6 per cent of Gross Domestic Product (GDP). However, the full Budget Statement places expenditure on a commitment basis at GH¢375 billion.
Employee compensation is expected to take GH¢92.6 billion, while interest payments are projected at GH¢61 billion. Of the interest allocation, GH¢51.5 billion will go towards domestic debt servicing and GH¢9.5 billion towards external debt.
Capital expenditure in the full Budget Statement is estimated at GH¢98.4 billion, equivalent to 5.4 per cent of GDP. The Finance Minister's speech, however, cited GH¢100.4 billion in one section and GH¢98.3 billion in another.
When projects financed through transfers to other public institutions are included, total capital spending rises to GH¢120.5 billion.
The government has also made provision for GH¢13.9 billion to settle outstanding arrears, including GH¢4.3 billion owed to Independent Power Producers (IPPs).
The cash-based fiscal deficit is projected at GH¢65.8 billion, representing 3.6 per cent of GDP. On a commitment basis, the deficit is estimated at GH¢51.9 billion, with a primary surplus of GH¢9.1 billion, equivalent to 0.5 per cent of GDP, according to the full Budget Statement. The speech put the primary surplus at GH¢9 billion.
Government sets economic targets for 2027
The government is targeting an overall economic growth rate of at least 5.2 per cent in 2027, with non-oil growth expected to reach a minimum of 5.7 per cent.
Inflation is expected to settle at 8 per cent by the end of the year, with a margin of 2 percentage points either side, while international reserves are projected to cover at least 6 months of imports.
By 2030, the government aims to achieve economic growth of approximately 8 per cent and reduce unemployment to below 8 per cent.
The Finance Minister cited unemployment of approximately 12.8 per cent in 2025 as an indication of the employment challenges the government intends to address.
Economic performance in 2026
Dr Forson reported that Ghana's economy expanded by 6.2 per cent during the first half of 2026, exceeding the annual growth target of 4.8 per cent.
Inflation declined to 5.5 per cent in October, while gross international reserves reached US$12.7 billion at the end of September, providing approximately 4.5 months of import cover.
The Bank of Ghana's policy rate also declined from 21.5 per cent in September 2025 to 14 per cent in September 2026.
Average bank lending rates dropped from 22.2 per cent to 15.94 per cent in the year to October, while the 91-day Treasury bill rate fell from 11.09 per cent in December to 4.56 per cent.
Ghana's public debt stood at GH¢759.3 billion at the end of October, representing 47.5 per cent of GDP.
The Finance Minister said the economic gains had been achieved despite external and domestic challenges, including rising oil prices linked to conflict in the Middle East, the April fire that disrupted operations at the 1,020-megawatt Akosombo power facility and the June floods.
Government to repay GH¢29bn in DDEP bonds ahead of schedule
One of the major announcements in the Budget was the early redemption of GH¢29 billion in bonds issued under the Domestic Debt Exchange Programme (DDEP).
Dr Forson said the payment, originally due in February 2027, would take effect from Thursday, November 12.
He disclosed that the Cedi Sinking Fund had accumulated GH¢29 billion as of Wednesday, making it possible for the government to settle the obligation ahead of schedule.
"Your cash is ready. Come for your money!" he told bondholders.
The government also intends to settle the US$590 million Eurobond payment due on January 2, 2027, by December 31, 2026.
Dr Forson said the two transactions would result in more than GH¢36 billion in debt obligations being cleared before their scheduled maturity dates.
The government is expected to make approximately GH¢53 billion in DDEP-related payments in February and August 2027 combined.
US$10bn New Economy programme to drive transformation
The government plans to invest US$10 billion between 2027 and 2030 under its New Economy programme, which is built around 8 strategic pillars.
For 2027, an amount of GH¢30 billion, equivalent to 1.5 per cent of GDP, has been earmarked for the initiative.
The funding arrangement, as outlined in the Budget, will involve reducing the primary surplus target by one percentage point of GDP, alongside revenue expected from tax reforms already approved by Parliament and improved compliance, projected to generate another 0.5 per cent of GDP.
Commercial agriculture will receive the largest share of the programme, with US$3 billion allocated to the sector.
Energy has been allocated US$2.2 billion, while critical minerals will receive 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 introduces deadlines for reducing dependence on raw material exports and increasing domestic production.
Commercial rice imports are expected to end by 2030, while all cocoa is to be processed locally by the same year. The export of raw small-scale gold is scheduled to end in December 2028.
The government also plans to prohibit raw manganese and bauxite exports by the end of 2030.
Public institutions will be required to prioritise locally manufactured products when spending public funds on rice, uniforms and hospital textiles. The same requirement will apply to medicines where local manufacturers can meet the required quality standards.
Under the energy component, construction of a fully state-owned 1,450-megawatt thermal power plant at Kafodzidzi-Abrobeano in the Central Region is expected to begin in December.
The government also plans to establish a 600-megawatt solar power plant supported by 2,000 megawatt-hours of battery storage.
The projects form part of a broader strategy to phase out all emergency power plants by 2030 and reduce electricity generation costs from approximately 16 US cents per kilowatt-hour to 8 US cents or less.
A US$200 million nuclear power readiness programme will also be implemented between January 2027 and December 2028 to prepare Ghana for the construction of its first nuclear power plant.
Education and health receive major allocations
The Ministry of Education has been allocated GH¢48 billion, including GH¢11.2 billion for the Ghana Education Trust Fund (GETFund).
An additional GH¢1.37 billion has been earmarked for secondary education reforms, including efforts to end the double-track system.
The health sector will receive GH¢40.3 billion, with GH¢10.2 billion allocated to the National Health Insurance Scheme (NHIS) and GH¢2.6 billion to the MahamaCares programme.
Another GH¢6.8 billion has been set aside 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 2 offshore patrol vessels for the Ghana Navy.
GH¢29.8bn allocated to Big Push road programme
The government's Big Push road infrastructure programme has been allocated GH¢29.8 billion.
However, the full Budget Statement also cites GH¢28 billion for the programme and GH¢27.8 billion for its capital expenditure component.
The Ministry of Roads has separately received GH¢11.3 billion.
The District Assemblies Common Fund is expected to receive GH¢10.8 billion.
The government has also earmarked GH¢685 million each for the construction of the Greater Accra Regional Market at Agbogbloshie and Phase Two of the Kejetia Market project.
The School Feeding Programme has been allocated GH¢2.1 billion, while the Livelihood Empowerment Against Poverty (LEAP) programme will receive GH¢1.1 billion.
National Service allowances have been allocated GH¢1 billion, with the removal of the cap on youth employment funding expected to free up another GH¢1 billion.
The National Anti-Illegal Mining Operations Secretariat (NAIMOS) will receive GH¢200 million, while GH¢400 million has been provided for land reclamation activities.
A separate GH¢13 billion allocation will cover shortfalls in the energy sector.
The Electoral Commission has been allocated GH¢1.2 billion, of which GH¢900 million is intended to finance 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 project advances
The Finance Minister disclosed that the Accra-Kumasi Expressway account had accumulated US$2.2 billion and GH¢9 billion as of Wednesday, representing approximately US$3 billion in total funds.
The latest engineering estimate for the 198.7-kilometre six-lane expressway stands at US$2.98 billion.
Tenders for the project are expected to close before the end of 2026.
Dr Forson said the revised project estimate was more than US$1 billion below the original figure, with the savings expected to support the construction of the Accra Orbital Expressway.
On railway infrastructure, the government intends to use petroleum revenue and mineral royalties generated in 2027 and 2028 to finance the Western Corridor Railway project.
The railway line is expected to connect Takoradi through Nsuta and Awaso to Nyinahin.
He said the government would undertake the project without resorting to borrowing.
Natural resource revenue management reforms
The government plans to introduce a Natural Resource Revenue Management Act and a Loans Act as part of efforts to strengthen the management of public finances and natural resource proceeds.
The Minerals Income Investment Fund (MIIF) and the Ghana Infrastructure Investment Fund are also expected to be merged into a new institution to be known as the Ghana Sovereign Wealth Fund.
Minimum wage and public sector salary adjustments
Although the Finance Minister did not announce wage adjustments during his parliamentary address, the full Budget Statement provides for increases in the minimum wage and public sector salaries.
The daily minimum wage will rise from GH¢21.77 to GH¢25.04 effective January 1, 2027.
Public sector workers under the Single Spine Pay Policy will also receive a 9 per cent increase in base pay from the same date.
One percentage point of the increase will be dedicated to addressing distortions in conditions of service.
The Budget does not announce any changes to fuel levies.
Other key measures in the 2027 Budget
The Budget also outlines plans for a referendum on the remuneration of the President, ministers and Members of Parliament.
Other initiatives include the provision of GH¢1 billion for National Service allowances, the planned ban on commercial rice imports by 2030 and the termination of raw cocoa exports by the same year.
The government will also remove import duties and VAT on solar panels and batteries, install 2 million prepaid electricity meters and introduce private sector participation in electricity distribution.
A ban on styrofoam products is scheduled to take effect from January 1.
Additional interventions cover the Korle-Bu Teaching Hospital, new hospital infrastructure and ambulances, nursing and teacher trainee allowances, the No Fees Stress initiative for first-year tertiary students and free sanitary pads for schoolgirls.
The government also intends to advance the Agbogbloshie and Kejetia market projects and construct a new National Theatre for Kumasi.
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[Full text] Ato Forson presents 2027 budget in Parliament
