IMF backs Ghana’s 2027 Budget targeting 0.5% primary surplus

The International Monetary Fund (IMF) has formally endorsed the framework for Ghana’s 2027 Budget, signaling international support for the government’s fiscal direction. Finance Minister Dr. Cassiel Ato Forson is scheduled to present the full Budget Statement and Economic Policy to Parliament on Thursday, November 12. The fiscal plan, which aligns with the country’s Policy Coordination Instrument (PCI), targets a primary surplus of 0.5% of GDP while prioritizing infrastructure development and job creation under the government’s "New Economy" programme.

A central pillar of the 2027 fiscal strategy is a US$10 billion initiative aimed at modernizing the national economy and restoring Ghana’s creditworthiness. Dr. Forson emphasized that the government is striving to achieve an investment-grade credit rating to unlock cheaper financing for local businesses. Since the 2022 debt default, Ghana’s rating has recovered to a B grade; reaching investment-grade status would allow the corporate bond market to flourish and reduce the high borrowing costs that have historically hampered private sector expansion.

The budget also aims to address significant structural imbalances within the economy, particularly in the agricultural sector. Despite accounting for 22.8% of Ghana’s GDP, agriculture currently receives just 4.3% of total bank loans. The "New Economy" program seeks to bridge this gap through reforms in lending practices and targeted infrastructure development. Observers note that the success of the 2027 Budget will depend on whether these allocations can effectively facilitate funding for both industrial and agricultural projects.

On the ground, the upcoming budget presentation has generated high expectations among the business community and ordinary citizens. In Cape Coast and other regional hubs, traders have expressed a desire for the government’s macroeconomic stability indicators to translate into tangible benefits, such as increased purchasing power and affordable goods. For many stakeholders, the true measure of the 2027 Budget will be its ability to turn fiscal discipline into sustainable jobs and improved access to credit for small-scale enterprises.