Government is projecting total expenditure of GH¢389.2 billion in 2027, with GH¢100.4 billion earmarked for capital investments as it seeks to expand infrastructure, boost productive activities and accelerate economic growth.
The expenditure projections were announced by Finance Minister Dr Cassiel Ato Forson during his presentation of the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12.
The proposed spending represents 21.6 per cent of Gross Domestic Product (GDP), while revenue and grants are expected to reach GH¢323.4 billion, equivalent to 17.9 per cent of GDP.
This leaves a projected overall cash deficit of GH¢65.8 billion, representing 3.6 per cent of GDP.
According to the Finance Minister, the expenditure framework places significant emphasis on productive investments, with direct capital expenditure estimated at GH¢100.4 billion, representing 5.6 per cent of GDP.
When transfers to other government units are included, capital-related expenditure increases to GH¢120.5 billion, exceeding the allocations for employee compensation and interest payments.
Employee compensation remains the largest single spending item, with GH¢104.1 billion allocated. The amount comprises GH¢92.6 billion for wages and salaries, alongside GH¢11.5 billion for social contributions, pensions and gratuities.
Out of the capital expenditure allocation, GH¢88.4 billion will finance projects funded from domestic resources, while GH¢12 billion will support externally financed projects.
Government has also earmarked GH¢76.5 billion for statutory and earmarked transfers, with interest payments projected at GH¢61 billion. The latter comprises GH¢51.5 billion in domestic interest obligations and GH¢9.5 billion for external debt payments.
Other expenditure is estimated at GH¢17.2 billion, covering items including energy sector shortfalls and GoldBod transfers.
An additional GH¢13.9 billion has been set aside to settle outstanding arrears, including GH¢4.3 billion owed to Independent Power Producers (IPPs).
Spending on goods and services has been pegged at GH¢13.7 billion, while social benefits will receive GH¢2.3 billion.
Education and health receive major allocations
Education and healthcare account for the largest sectoral allocations under the 2027 spending plan.
The education sector has been allocated GH¢48 billion, including GH¢11.2 billion for the Ghana Education Trust Fund (GETFund) and GH¢1.37 billion to support efforts to end the double-track system.
Healthcare 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 begin construction of 11 new hospitals.
The Ministry responsible for Gender and Social Protection will receive GH¢3.4 billion, with GH¢2.1 billion designated for the School Feeding Programme and GH¢1.1 billion for the Livelihood Empowerment Against Poverty (LEAP) programme.
GH¢59.8bn allocated to flagship economic programmes
Government’s New Economy and Big Push initiatives have been allocated a combined GH¢59.8 billion as part of efforts to drive economic transformation and improve infrastructure.
The New Economy Programme will receive GH¢30 billion, while GH¢29.8 billion has been earmarked for the Big Push infrastructure programme. Central government funding will account for GH¢28 billion of the Big Push allocation.
The Roads and Highways sector has been allocated GH¢11.3 billion, while GH¢3.1 billion will support Energy and Green Transition initiatives.
Separately, GH¢13 billion has been provided to address outstanding payment obligations in the energy sector.
Agriculture will receive GH¢2.9 billion, with GH¢2.5 billion allocated to the Works, Housing and Water Resources sector.
Security, local governance and youth development
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 will receive GH¢15.5 billion, while the Ministry of Defence has been allocated GH¢10.1 billion to support the operations of the Ghana Armed Forces.
Government has also made provision of GH¢3.5 billion for youth development programmes and interventions.
The 2027 expenditure framework forms part of the government’s broader economic transformation agenda, with significant resources directed towards infrastructure, education, healthcare, agriculture and industrial development.
The allocations are intended to strengthen the country’s productive capacity, improve public services and create opportunities for employment and economic expansion.
By: Rainbowradioonline.com/Ghana