‘We are living within our means’ – Finance Minister defends no-new-taxes for 2027

Finance Minister Dr Cassiel Ato Forson has defended the government's decision to maintain its no-new-taxes policy in 2027, saying the administration is managing public finances within available resources while increasing allocations to social intervention programmes.

Speaking on the Citi Breakfast Show on Friday, November 13, he said the government's spending priorities were centred on improving living conditions, supporting vulnerable groups and investing in productive sectors to expand the economy.

Responding to questions about whether the government's ability to meet outstanding financial obligations without introducing additional taxes indicated that the country was now financially stable, Dr Forson said: “We are living within our means.”

He acknowledged concerns that the improvement in the country's finances had not translated into tangible benefits for many households but argued that the government was providing direct assistance through existing social programmes.

As an example, he pointed to the GH¢2.1 billion allocated to the Livelihood Empowerment Against Poverty (LEAP) programme in the 2027 Budget, representing nearly twice the GH¢1.1 billion allocation inherited by the current administration.

The Finance Minister also cited continued government support for nursing and teacher trainees through their respective allowances, saying the administration had maintained the schemes and ensured that payments were made promptly.

On efforts to tackle youth unemployment, Dr Forson disclosed that funding for the Youth Employment Agency (YEA) was expected to increase significantly, from approximately GH¢600 million in 2026 to GH¢2 billion in 2027.

He said the additional resources would allow the agency to create more employment opportunities and introduce expanded interventions to address the challenge of unemployment among young people.

Dr Forson maintained that the government was balancing social spending with investments in infrastructure and productive sectors, which he said were necessary to reshape the structure of the economy.

He explained that the broader objective was to build an economy capable of generating sustainable jobs and incomes, rather than depending mainly on short-term financial assistance to households.