IMF Praises Ghana’s Budget Plans, Urges Strong Spending Controls

The International Monetary Fund (IMF) has expressed confidence in the foundations of Ghana’s 2027 national budget, describing its fiscal direction as consistent with the country’s economic reform programme.

The Fund says the proposed budget targets a primary surplus of 0.5 per cent of Gross Domestic Product (GDP) on a commitment basis, reflecting the government’s continued efforts to strengthen public finances and maintain economic stability.

According to the IMF mission team, the target will be supported by revenue-enhancing measures approved by Parliament in July 2026. The measures are expected to create additional fiscal space for government investment in key development priorities.

The IMF noted that resources generated through the fiscal strategy would be directed towards the government’s New Economy agenda, with particular emphasis on job creation, investment opportunities and addressing Ghana’s infrastructure deficit.

However, the Fund stressed that achieving these objectives will require strong financial discipline. It urged the government to ensure proper assessment of projects, competitive procurement processes and strict expenditure controls to guarantee value for money and protect the country’s debt sustainability.

On revenue mobilisation, the IMF expects Ghana’s non-oil revenue to increase further in 2027, building on stronger collections recorded in 2026.

The projected improvement is expected to be supported by the tax measures introduced in July, a review of customs and excise legislation, and reforms aimed at improving tax administration. These include the Integrated Tax Administration System and the deployment of electronic fiscal devices.

Despite its positive assessment, the Fund cautioned that Ghana remains exposed to economic risks, including fluctuations in international gold, cocoa and oil prices, geopolitical tensions and tighter global financial conditions.

Domestic challenges, particularly debt refinancing requirements and financial pressures in the energy, cocoa and gold sectors, also require continued attention.

The IMF’s assessment follows a mission to Accra led by Ruben Atoyan from October 22 to November 4, 2026, to review Ghana’s first programme assessment under its 36-month Policy Coordination Instrument (PCI).

The Fund and Ghanaian authorities have reached a staff-level agreement on the first review, although the agreement remains subject to approval by IMF Management and the Executive Board.

The 2027 Budget is expected to be presented to Parliament in November, where the government’s spending priorities and revenue projections will receive further scrutiny.

The IMF has reaffirmed its commitment to supporting Ghana’s efforts to preserve economic stability while pursuing stronger, inclusive and job-rich growth.