The government has projected total expenditure of GH¢389.2 billion for the 2027 financial year, representing 21.6% of Gross Domestic Product (GDP), as it outlines plans to increase investment in infrastructure, human capital and key economic sectors.
Finance Minister Dr Cassiel Ato Forson announced the projection on Thursday, November 12, when he presented the 2027 Budget Statement and Economic Policy to Parliament.
The expenditure estimate is expected to be financed by total revenue and grants of GH¢323.4 billion, equivalent to 17.9% of GDP, resulting in an overall cash deficit of GH¢65.8 billion, or 3.6% of GDP.
According to the Finance Minister, the spending framework places greater emphasis on productive investment, with direct capital expenditure set at GH¢100.4 billion, representing 5.6% of GDP.
When transfers to other government units are factored in, total capital spending rises to GH¢120.5 billion, surpassing allocations for employee compensation and interest payments.
Breakdown of Government Expenditure
Compensation of employees constitutes the largest expenditure component, with an allocation of GH¢104.1 billion. This includes GH¢92.6 billion for wages and salaries and GH¢11.5 billion for social contributions, pensions and gratuities.
Capital expenditure is projected at GH¢100.4 billion, comprising GH¢88.4 billion for domestically financed projects and GH¢12 billion for externally financed initiatives.
Government has also set aside GH¢76.5 billion for statutory and earmarked transfers, while interest payments are estimated at GH¢61 billion, made up of GH¢51.5 billion in domestic interest and GH¢9.5 billion in external interest.
Other expenditure is expected to amount to GH¢17.2 billion, covering items such as energy sector shortfalls and GoldBod transfers.
An additional GH¢13.9 billion has been allocated towards settling outstanding arrears, including GH¢4.3 billion owed to Independent Power Producers (IPPs).
Goods and services will receive GH¢13.7 billion, while social benefits have been allocated GH¢2.3 billion.
Education and Health Receive Major Allocations
Education takes the largest share of the sectoral allocations, with GH¢48 billion earmarked for the sector.
The allocation includes GH¢11.2 billion for the Ghana Education Trust Fund (GETFund) and GH¢1.37 billion towards ending the double-track system in senior high schools.
The health sector has been allocated GH¢40.3 billion, including 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 Gender and Social Protection sector will receive GH¢3.4 billion, of which GH¢2.1 billion is intended for the School Feeding Programme and GH¢1.1 billion for the Livelihood Empowerment Against Poverty (LEAP) programme.
GH¢59.8bn for Flagship Economic Programmes
Under its flagship economic transformation initiatives, government has allocated GH¢30 billion to the New Economy Programme and GH¢29.8 billion to the Big Push infrastructure programme.
Of the Big Push allocation, GH¢28 billion will come directly from the central government budget.
In other infrastructure and productive sectors, Roads and Highways has been allocated GH¢11.3 billion, while Energy and Green Transition will receive GH¢3.1 billion, alongside a separate GH¢13 billion provision to address energy sector payment shortfalls.
Agriculture is expected to receive GH¢2.9 billion, with GH¢2.5 billion allocated to Works, Housing and Water Resources.
Local Governance and Security 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 will receive GH¢15.5 billion, while the Ministry of Defence has been allocated GH¢10.1 billion.
Youth Development has also been allocated GH¢3.5 billion under the 2027 expenditure framework.
The government’s spending plan is expected to channel resources into infrastructure development, education, healthcare, agriculture and industrial transformation, with the broader objective of strengthening economic productivity and creating employment opportunities.
