The government is projecting total expenditure of GH¢389.2 billion for the 2027 financial year, with a significant portion earmarked for capital investments and major economic transformation programmes.
Presenting the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, Finance Minister Dr Cassiel Ato Forson said the projected expenditure represents 21.6% of Gross Domestic Product (GDP).
Total revenue and grants are expected to reach GH¢323.4 billion, equivalent to 17.9% of GDP, leaving an overall cash deficit of GH¢65.8 billion, or 3.6% of GDP.
When transfers to other government units are included, capital spending rises to GH¢120.5 billion, exceeding the allocations for compensation of employees and interest payments.
Key expenditure breakdown
The largest expenditure item is compensation of employees, projected at GH¢104.1 billion. This comprises GH¢92.6 billion for wages and salaries, and GH¢11.5 billion for social contributions, pensions and gratuities.
Capital expenditure is estimated at GH¢100.4 billion, comprising GH¢88.4 billion for domestically financed projects and GH¢12 billion for externally financed projects.
Statutory and earmarked transfers are projected at GH¢76.5 billion, while interest payments are expected to amount to GH¢61 billion, comprising GH¢51.5 billion in domestic interest and GH¢9.5 billion in external interest.
Government has also allocated GH¢17.2 billion for other expenditure, including energy sector shortfalls and GoldBod transfers.
An additional GH¢13.9 billion has been earmarked for clearing legacy arrears, including GH¢4.3 billion owed to Independent Power Producers (IPPs).
Goods and services are allocated GH¢13.7 billion, while social benefits are projected at GH¢2.3 billion.
Major sectoral and flagship allocations
Under the sectoral allocations, the education sector receives the largest envelope of GH¢48 billion.
The amount includes GH¢11.2 billion for the Ghana Education Trust Fund (GETFund) and GH¢1.37 billion towards the elimination of the double-track system.
The health sector follows with an allocation of GH¢40.3 billion, including GH¢10.2 billion for the National Health Insurance Scheme (NHIS) and GH¢6.8 billion to begin the construction of 11 new hospitals.
For the government’s flagship transformation initiatives, GH¢30 billion has been allocated to the New Economy Programme, while GH¢29.8 billion has been earmarked for the Big Push infrastructure programme.
The Big Push allocation includes GH¢28 billion from the central government budget.
The Energy and Green Transition sector has been allocated GH¢3.1 billion, in addition to a separate GH¢13 billion provision for energy sector payment shortfalls.
Agriculture receives GH¢2.9 billion, while the Works, Housing and Water Resources sector has been allocated GH¢2.5 billion.
Under security, local governance and youth development, the Local Governance sector receives GH¢17.6 billion, including GH¢10.8 billion for the District Assemblies Common Fund.
The Interior sector has been allocated GH¢15.5 billion, while Defence receives GH¢10.1 billion.
Youth Development is allocated GH¢3.5 billion.
The 2027 Budget expenditure framework is expected to support the government’s broader economic agenda, with investments in infrastructure, education, healthcare, agriculture and industrial development intended to strengthen productive capacity and create employment opportunities
