The International Monetary Fund (IMF) has backed a more growth-oriented fiscal strategy for Ghana from 2027, saying the country can increase spending on infrastructure, education, healthcare and other priority sectors while continuing to reduce its public debt.
In its latest Article IV Consultation and proposed Policy Coordination Instrument (PCI) report, the IMF said Ghana’s improving debt position and macroeconomic stability have created room for a less aggressive pace of fiscal tightening.
The Fund said Ghana could reduce its primary fiscal surplus target from 1.5 per cent of GDP to 0.5 per cent from 2027, allowing the government to allocate more resources to development programmes without undermining its long-term debt sustainability objective.
According to the IMF, the revised fiscal path would provide additional fiscal space for capital expenditure and investments that support economic growth and job creation.
The Fund noted that the more flexible approach is possible because Ghana has made substantial progress in restoring debt sustainability and strengthening public financial management.
“The lowering of the fiscal primary surplus will be supported by an ambitious package of fiscal structural reforms to contain quasi-fiscal pressures and safeguard debt sustainability,” the IMF said.
The report said the government’s 2026 budget remains consistent with the current fiscal programme by targeting a 1.5 per cent primary surplus, but from 2027 a lower target would create space for higher development spending while preserving fiscal buffers.
The IMF highlighted Ghana’s significant financing needs to achieve the Sustainable Development Goals (SDGs), estimating that public spending will need to exceed 16 per cent of GDP by 2030, particularly in education, healthcare and infrastructure.
It said greater investment in sectors such as agriculture and energy could stimulate private investment, expand value addition and generate employment, especially for young people.
The proposed PCI programme envisages an increase in primary spending from 2027, with a stronger emphasis on productive capital investment, while supporting revenue mobilisation through tax reforms, improved compliance and stronger public financial management systems.
The IMF said the additional fiscal space would be accompanied by reforms in tax administration, state-owned enterprise oversight, procurement systems and expenditure controls to ensure that higher spending does not reverse Ghana’s fiscal gains.
Ghanaian authorities agreed that the more relaxed fiscal stance is justified by the country’s improved debt dynamics and said the additional resources would be directed towards priority development projects and employment creation.
The IMF concluded that Ghana could pursue a more development-focused budget strategy from 2027, provided that fiscal discipline and structural reforms remain firmly in place.
