The Mahama led government plans to ease its fiscal restraint in 2027, lowering its primary budget surplus target to 0.5% of gross domestic product as it creates more room to finance economic expansion, job creation and domestic production.
The 2027 Budget reduces the primary surplus target from 1.5% of GDP in 2026, signalling a shift towards increased government spending while maintaining commitments to fiscal discipline and price stability.
The primary balance measures government revenue against expenditure excluding interest payments on public debt. A lower surplus target means the government intends to retain less of its revenue after primary spending, creating additional fiscal space for investment and other public expenditure.
The planned spending is expected to support the administration’s New Economy Agenda, which prioritises agriculture, manufacturing, local production and employment creation as part of efforts to reduce reliance on imported goods.
At the same time, the government is targeting inflation of 8% in 2027, with a margin of two percentage points on either side, signalling its intention to sustain price stability as public expenditure increases.
For businesses and households, the government’s fiscal approach could have implications for employment, investment, borrowing costs and the cost of living.
Increased allocations to agriculture, infrastructure and manufacturing could create opportunities for local businesses, suppliers and contractors while supporting domestic production and employment.
Maintaining inflation within the targeted range could also help preserve purchasing power and provide a more predictable environment for businesses making investment and pricing decisions.
The fiscal outlook will also matter to financial markets and investors assessing Ghana’s ability to balance economic expansion with debt sustainability.
Achieving the spending ambitions without undermining macroeconomic stability will depend on revenue mobilisation, expenditure management and the government’s ability to keep its fiscal commitments.
The lower primary surplus target therefore reflects an effort to make more resources available for economic activity while retaining a positive primary balance and maintaining the government’s broader fiscal consolidation objectives.
