The government has allocated GH¢100.4 billion for capital expenditure in 2027, as total public spending is projected to rise to GH¢389.2 billion.

The allocation, representing 5.6% of Gross Domestic Product (GDP), forms part of the government’s plan to expand infrastructure and increase investment in productive sectors.

Finance Minister Dr Cassiel Ato Forson announced the spending estimates during the presentation of the 2027 Budget Statement to Parliament on Thursday, November 12.

Capital-related spending increases to GH¢120.5 billion when transfers to other government units are included, exceeding the allocations for employee compensation and interest payments.

Of the direct capital expenditure, GH¢88.4 billion will finance domestically funded projects, while GH¢12 billion will support externally financed projects.

Compensation of employees remains the largest single expenditure item, with GH¢104.1 billion allocated, comprising GH¢92.6 billion for wages and salaries and GH¢11.5 billion for social contributions, pensions and gratuities.

Statutory and earmarked transfers are projected at GH¢76.5 billion, while interest payments are expected to reach GH¢61 billion. The interest allocation comprises GH¢51.5 billion in domestic payments and GH¢9.5 billion in external obligations.

The budget also provides GH¢17.2 billion for other expenditure, including energy sector shortfalls and GoldBod transfers, and GH¢13.9 billion to clear legacy arrears. This includes GH¢4.3 billion owed to Independent Power Producers.

Goods and services have been allocated GH¢13.7 billion, while social benefits will receive GH¢2.3 billion.

Total revenue and grants are projected at GH¢323.4 billion, equivalent to 17.9% of GDP, against expenditure of 21.6% of GDP. The resulting overall cash deficit is estimated at GH¢65.8 billion, or 3.6% of GDP.

Education receives the largest sectoral allocation of GH¢48 billion, including GH¢11.2 billion for the Ghana Education Trust Fund and GH¢1.37 billion towards ending the double-track system.

The health sector has been allocated GH¢40.3 billion, including GH¢10.2 billion for the National Health Insurance Scheme and GH¢6.8 billion to begin construction of 11 new hospitals.

The Ministry responsible for Gender and Social Protection receives GH¢3.4 billion, with GH¢2.1 billion for the School Feeding Programme and GH¢1.1 billion for the Livelihood Empowerment Against Poverty programme.

The New Economy Programme and Big Push infrastructure programme have received a combined GH¢59.8 billion. The New Economy Programme is allocated GH¢30 billion, while GH¢29.8 billion is earmarked for Big Push, including GH¢28 billion from the central government budget.

The Roads and Highways sector receives GH¢11.3 billion, while Energy and Green Transition is allocated GH¢3.1 billion. A separate GH¢13 billion provision has been made to address energy sector payment shortfalls.

Agriculture receives GH¢2.9 billion, while GH¢2.5 billion is allocated to Works, Housing and Water Resources.

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 receives GH¢15.5 billion and Defence GH¢10.1 billion.

Youth Development has also been allocated GH¢3.5 billion to support interventions in the sector.

Gov’t budgets GH¢100.4bn for capital projects in 2027

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