Gov’t projects GH¢389.2bn expenditure for 2027 – Finance Minister

The government is targeting total expenditure of GH¢389.2 billion in 2027, with more than GH¢100 billion expected to go into capital projects as part of efforts to expand infrastructure and accelerate economic transformation. Finance Minister Dr Cassiel Ato Forson announced the spending projections when he presented the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12.

The expenditure estimate represents 21.6% of Gross Domestic Product (GDP), while total revenue and grants are projected at GH¢323.4 billion, equivalent to 17.9% of GDP. This leaves an overall cash deficit of GH¢65.8 billion, representing 3.6% of GDP. Dr Forson said the spending plan reflects the government’s commitment to prioritising productive investments, with direct capital expenditure estimated at GH¢100.4 billion, or 5.6% of GDP.

The figure rises to GH¢120.5 billion when transfers to other government units are included, making capital-related spending higher than the allocations for employee compensation and interest payments. Compensation of employees remains the largest single expenditure item, with GH¢104.1 billion allocated. This comprises GH¢92.6 billion for wages and salaries and GH¢11.5 billion for social contributions, pensions and gratuities.

Of the GH¢100.4 billion earmarked for capital expenditure, GH¢88.4 billion will finance domestically funded projects, while GH¢12 billion will support externally financed projects. Statutory and earmarked transfers are projected at GH¢76.5 billion, with interest payments expected to reach GH¢61 billion. The interest component includes GH¢51.5 billion in domestic payments and GH¢9.5 billion in external obligations.

The budget also provides GH¢17.2 billion for other expenditure, including energy sector shortfalls and GoldBod transfers, while GH¢13.9 billion has been set aside to clear legacy arrears. This includes GH¢4.3 billion owed to Independent Power Producers (IPPs). Goods and services have been allocated GH¢13.7 billion, with social benefits receiving GH¢2.3 billion.

Education and health take largest sectoral allocations Education receives the largest sectoral allocation of GH¢48 billion, including GH¢11.2 billion for the Ghana Education Trust Fund (GETFund) and GH¢1.37 billion towards ending the double-track system. The health sector follows with GH¢40.3 billion. The allocation includes GH¢10.2 billion for the National Health Insurance Scheme (NHIS) and GH¢6.8 billion to commence the construction of 11 new hospitals.

The Ministry responsible for Gender and Social Protection has been allocated GH¢3.4 billion, of which GH¢2.1 billion will support the School Feeding Programme and GH¢1.1 billion will go towards the Livelihood Empowerment Against Poverty (LEAP) programme. GH¢59.8bn for New Economy and Big Push programmes The government’s two major transformation initiatives have received a combined allocation of GH¢59.8 billion.

The New Economy Programme has been allocated GH¢30 billion, while GH¢29.8 billion has been earmarked for the Big Push infrastructure programme. Of the latter amount, GH¢28 billion will come directly from the central government budget. In other infrastructure-related allocations, the Roads and Highways sector receives GH¢11.3 billion, while Energy and Green Transition has been allocated GH¢3.1 billion.

A separate GH¢13 billion provision has also been made to address energy sector payment shortfalls. Agriculture receives GH¢2.9 billion, with GH¢2.5 billion allocated to the Works, Housing and Water Resources sector. Local governance, security and youth allocations The Local Governance sector has been allocated GH¢17.6 billion, including GH¢10.8 billion for the District Assemblies Common Fund.

The Interior sector receives GH¢15.5 billion, while the Defence sector has been allocated GH¢10.1 billion. Youth Development has also been allocated GH¢3.5 billion to support interventions in the sector. The expenditure framework is expected to underpin the government’s broader economic agenda, with increased allocations towards infrastructure, education, healthcare, agriculture and industrial development aimed at strengthening productive capacity and creating employment opportunities.