Accra, Nov. 13, GNA – Government has earmarked GHS30 billion for 2027 under a US$10 billion, four-year programme to expand domestic production, value addition and employment.
The New Economy programme, running from 2027 to 2030, is intended to translate the gains from economic stabilisation into productive investment, industrial expansion and higher incomes.
Dr Cassiel Ato Forson, Minister of Finance, announced the initiative when he presented the 2027 Budget Statement and Economic Policy to Parliament on Thursday, on the authority of President John Dramani Mahama.
Presenting the budget on the theme: “The New Economy: New Ghana, Jobs and Prosperity,” he said the country had emerged from a difficult economic crisis and needed to deploy the fiscal space created through stabilisation to support productive sectors and generate employment.
He said the transition would require a shift towards domestic production, local processing of natural resources and investment in sectors capable of creating sustainable economic opportunities.
The programme identifies eight priority areas: macroeconomic stability and affordable finance; commercial agriculture; energy infrastructure; value addition to critical minerals; tourism, culture and creative arts; textiles and garments; pharmaceuticals and biomanufacturing; and the technology economy.
Economic performance and fiscal position
Dr Forson said the economy had faced several external and domestic shocks in 2026, including the conflict in the Middle East, which almost doubled oil prices, a sharp decline in cocoa prices early in the year, the April fire at the Akosombo switchyard control room and June floods that caused deaths, displaced families and damaged infrastructure.
Despite those pressures, inflation stood at 5.5 per cent in October 2026, while real Gross Domestic Product (GDP) grew by 6.2 per cent in the first half of the year, exceeding the target of 4.8 per cent. Non-oil GDP growth was 5.9 per cent.
Gross international reserves reached US$12.7 billion at the end of September, equivalent to 4.5 months of import cover.
The Minister said borrowing costs had also declined, with the monetary policy rate falling from 21.5 to 14 per cent and the Ghana Reference Rate from 29.72 to 10.01 per cent.
Average lending rates declined from 22.2 to 15.94 per cent in 2026, indicating improved financing conditions for businesses and other borrowers.
On fiscal performance between January and October 2026, he said the Government recorded a primary surplus of 1.4 per cent of GDP on a commitment basis, close to the full-year target of 1.5 per cent.
The overall fiscal deficit on a commitment basis was one per cent of GDP, below the target of three per cent, while total expenditure stood at GHS239 billion, 7.6 per cent below target.
Total revenue and grants amounted to GHS219.3 billion, 3.5 per cent above target. Domestic revenue was GHS218.2 billion, comprising GHS170 billion in non-oil tax revenue and GHS23.7 billion in non-oil non-tax revenue.
Dr Forson said the Government had maintained its commitment not to introduce new taxes or increase existing rates.
Public debt stood at GHS759.3 billion at the end of October, representing 47.5 per cent of GDP, while interest payments declined from 25.6 to 17.8 per cent of domestic revenue.
Transfers to statutory and earmarked funds amounted to GHS53.7 billion, while the Government cleared GHS20.8 billion in legacy arrears.
The Minister also announced the early redemption of GHS29 billion in Domestic Debt Exchange Programme bonds due in February 2027, effective November 12, 2026.
“your cash is ready, come for your money,” he told bondholders.
He said the Government intended to settle both the January Eurobond and the February domestic bond by December 31, 2026, bringing forward more than GHS36 billion in debt repayments.
2027 revenue and expenditure framework
For 2027, total revenue and grants are projected at GHS323.4 billion, equivalent to 17.9 per cent of GDP, while total expenditure on a cash basis is estimated at GHS389.2 billion, representing 21.6 per cent of GDP.
Domestic revenue is expected to contribute GHS320.2 billion, comprising GHS256.1 billion in non-oil tax revenue, GHS33.5 billion in non-oil non-tax revenue, GHS15.5 billion in oil revenue and GHS15.1 billion in other revenue.
Project grants are estimated at GHS3.2 billion.
The expenditure framework includes GHS104.1 billion for compensation of employees, GHS61 billion for interest payments and GHS13.7 billion for goods and services.
Transfers to statutory and earmarked funds are estimated at GHS76.5 billion, while social benefits will receive GHS2.3 billion and other expenditure GHS17.2 billion.
Capital expenditure is projected at GHS100.4 billion, comprising GHS88.4 billion in domestic financing and GHS12 billion in external financing.
A further GHS13.9 billion is earmarked for arrears clearance, including GHS4.3 billion owed to independent power producers.
The allocations place significant demands on revenue mobilisation, with compensation, interest payments and statutory transfers accounting for substantial portions of projected expenditure, alongside the capital investment required to support the transformation agenda.
Infrastructure and productive-sector investment
Dr Forson said the Big Push infrastructure programme would receive GHS29.8 billion in 2027 to accelerate road construction and improve transport corridors.
On the Accra-Kumasi Expressway, he said the project account at the Bank of Ghana held US$2.2 billion and GHS9 billion as of November 11, 2026.
“As of yesterday, 11th November 2026, the project account at the Bank of Ghana held US$2.2 billion and GHS9 billion, together equivalent to about US$3 billion,” he said.
The New Economy programme will receive GHS30 billion in 2027, equivalent to 1.5 per cent of GDP, to finance interventions across its eight priority areas.
The education sector has been allocated GHS48 billion, including GHS11.2 billion for the Ghana Education Trust Fund (GETFund), GHS1.37 billion to transform secondary education and eliminate the double-track system, and GHS537 million for the No Fees Stress Policy for first-year tertiary students.
Other allocations include GHS292 million for the free sanitary pads initiative, GHS227 million for teacher trainee allowances, GHS169 million for Basic Education Certificate Examination fees, GHS166 million for the Capitation Grant and GHS250 million for the Scholarship Secretariat.
The health sector is expected to receive GHS40.3 billion, including GHS10.2 billion for the National Health Insurance Scheme, GHS2.6 billion for the Ghana Medical Trust Fund, also known as MahamaCares, and GHS6.8 billion to begin work on two specialist hospitals, six regional hospitals, a mother and child centre at the Korle-Bu Teaching Hospital and two district hospitals.
The budget also provides GHS1 billion each for the Eastern and Western Regional Hospitals and 35 Agenda 111 hospitals, GHS200 million for ambulances, GHS100 million for vaccines and GHS434 million for nursing trainee allowances.
For agriculture, the Ministry of Food and Agriculture has been allocated GHS2.9 billion, including GHS800 million for machinery under the second phase of the Farmer Service Centres, GHS515 million for fertiliser and certified seeds, GHS500 million for silos and GHS245 million for the Poultry Farm-to-Table project.
Other allocations include GHS200 million for the National Food Buffer Stock Company and GHS105 million for irrigation.
The Ministry of Fisheries and Aquaculture will receive GHS400 million, including GHS100 million each for fish markets, women and youth in aquaculture, and fishing inputs and outboard motors.
The Ministry of Sports and Recreation has been allocated GHS782 million, with GHS600 million earmarked for the construction of 10 regional stadia.
The plan includes seven 5,000-seater stadia in the Western North, North East, Ahafo, Upper East, Upper West, Bono East and Oti regions; two 10,000-seater facilities in the Savannah and Bono regions; and a 12,000-seater stadium in the Volta Region.
The Ministry of Tourism, Culture and Creative Arts has been allocated GHS186 million for 2027.
Dr Forson said the sector would also receive planned investment of US$1 billion between 2027 and 2030 to develop a year-round visitor economy anchored on the Black Star Experience, heritage sites and a proposed modern convention centre for the Social Security and National Insurance Trust (SSNIT).
Government has also allocated GHS188 million to support enterprise, production and trade as part of efforts to make agribusiness, industry and trade more investment-driven, export-oriented and employment-intensive between 2027 and 2030.
Sustaining the transformation agenda
Dr Forson said the fiscal space created through economic stabilisation was a national asset that had come at a cost and needed to be protected through continued fiscal discipline.
He urged Ghanaians to assess the Government’s programmes and policies against measurable milestones and tangible results.
He said the country needed to prioritise production over dependence and build an economy capable of delivering jobs and prosperity as it approached its 70th Independence anniversary in 2027.
GNA
Edited by Kenneth Sackey