The International Monetary Fund (IMF) has endorsed the broad direction of Ghana’s 2027 Budget, saying the government’s fiscal plans are consistent with the country’s Policy Coordination Instrument (PCI) programme and maintain a balance between fiscal discipline and development spending.
Following the first review of Ghana’s 36-month PCI programme, IMF staff said the 2027 Budget is built on “strong foundations” and targets a primary surplus of 0.5 percent of GDP, signalling the government’s commitment to preserving macroeconomic stability while creating room for investment and job creation.
The Fund noted that the surplus target will be supported by revenue measures approved by Parliament in July 2026 and builds on recent fiscal consolidation efforts that have strengthened public finances.
According to the IMF, the fiscal space generated under the budget will be channelled into investments aligned with the government’s New Economy agenda, particularly projects aimed at creating jobs, attracting investment and closing critical infrastructure gaps.
The Fund stressed that maintaining strict expenditure discipline will be essential to ensuring the budget achieves its objectives without undermining debt sustainability.
“Rigorous project appraisal, competitive procurement, and strict expenditure controls will be critical to ensure value for money and preserve debt sustainability,” the IMF said in a statement issued after discussions with Ghanaian authorities.
A key pillar of the 2027 fiscal framework is expected to be stronger domestic revenue mobilisation. The IMF projects further growth in non-oil revenues next year, supported by recently approved tax measures, reforms to customs and excise legislation, and continued improvements in revenue administration.
These reforms include the rollout of the Integrated Tax Administration System and wider use of electronic fiscal devices designed to improve tax compliance and collection efficiency.
The Fund’s positive assessment of the budget comes against a backdrop of improving macroeconomic conditions. Ghana’s fiscal position remains strong, with the primary surplus for 2026 on track to meet programme targets, while public debt has continued its downward trajectory following several years of fiscal adjustment.
Despite the favourable outlook, the IMF cautioned that significant risks remain. Volatility in global prices for gold, cocoa and oil, combined with geopolitical tensions and tighter international financial conditions, could affect revenue performance and budget implementation.
Domestic pressures, including debt rollover obligations and challenges in the energy and commodity sectors, also underscore the need for continued fiscal prudence.
The IMF and Ghanaian authorities have reached a staff-level agreement on the first review of the PCI programme, with final approval subject to endorsement by IMF Management and the Fund’s Executive Board.
Source: businesspostonline
