The government will lower its primary surplus target from 1.5 per cent to 0.5 per cent of GDP over the programme period to create room for investment in productive infrastructure, industries and job creation.

The measure forms part of the financing arrangements for the government’s $10 billion New Economy Programme, which is expected to run from 2027 to 2030.

Presenting the 2027 Budget Statement to Parliament on Thursday, November 12, Finance Minister Dr Cassiel Ato Forson said the programme would be financed through two fiscal measures.

“The first is to reduce Ghana’s primary surplus target by one percentage point of GDP over the period, creating room for investment in productive infrastructure, industries and jobs,” he said.

The second measure involves revenue expected from tax reforms approved by Parliament and compliance measures being implemented by the Ghana Revenue Authority (GRA).

“Tax reforms already approved by Parliament and compliance measures already being implemented by GRA are expected to generate 0.5 per cent of GDP,” Dr Forson said.

He said the government would invest 1.5 per cent of GDP, equivalent to GH¢30 billion, in the programme in 2027.

“In 2027, we will invest 1.5 per cent of GDP, equivalent to GH¢30 billion, in the New Economy,” he said.

The Finance Minister said projects under the programme would be subjected to appraisal and value-for-money assessments, with all commitments included in the budget and reported transparently.

“Every project will undergo rigorous appraisal and value-for-money assessment. Our commitments will be budgeted, authorised and transparently reported,” he said.

“Every cedi invested will help build a stronger economy and improve the lives of our people,” he added.

Dr Forson said the programme would also introduce patient capital to give farmers and industrialists sufficient time to invest, produce and generate returns before repayment obligations fall due.

“Our ambition is to bring the cost of capital into single digits and make finance more widely available,” he said.

He said the government would work through the Development Bank Ghana, Ghana EXIM Bank and participating financial institutions to improve access to financing for productive businesses.

“Affordable finance will translate stability into opportunities. Lower interest rates will translate into credit that businesses can access, afford and repay,” he said.

The investment is expected to support projects in irrigation, energy transition, transport, industrial infrastructure, technology and skills development.

Dr Forson said the government’s growth strategy would focus on investment, exports and employment rather than relying on commodity windfalls and debt-financed consumption.

“Ghana’s phase of growth must be investment-led, export-capable and job-intensive,” he said.

Government to redirect fiscal space from primary surplus to GH¢30bn New Economy investment

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