The Government will reduce its medium-term primary fiscal surplus target from 1.5 per cent of Gross Domestic Product (GDP) to 0.5 per cent of GDP from 2027 under the Policy Coordination Instrument (PCI), creating additional fiscal space to finance growth-enhancing infrastructure and job-creating investments.
‎‎Presenting the 2026 Mid-Year Fiscal Policy Review to Parliament on the authority of President John Dramani Mahama, Finance Minister Dr Cassiel Ato Forson said the policy shift follows the significant fiscal consolidation achieved in 2025, which has strengthened the country’s macroeconomic position.
‎‎He explained that the additional fiscal space would be dedicated exclusively to capital expenditure aimed at expanding infrastructure, improving productivity, stimulating private sector activity, creating sustainable employment, particularly for young people, and supporting long-term economic development.
‎‎To implement the new fiscal framework, the Finance Minister announced that Government would submit a Bill alongside the 2027 Budget to amend the Public Financial Management (Amendment) Act, 2025 (Act 1136).
‎‎Dr Forson said the PCI remains anchored on Government’s commitment to structural reforms and prudent macroeconomic management, expressing confidence that consistent implementation would further strengthen economic stability and boost confidence among investors, businesses, households and development partners.
‎He outlined the programme’s key objectives as safeguarding public debt sustainability while creating room for priority expenditure through stronger domestic revenue mobilisation and more growth-friendly spending, strengthening social protection programmes, implementing a more flexible exchange rate regime, pursuing a forward-looking and data-driven monetary policy, and promoting stronger, more inclusive economic growth while reducing youth unemployment and poverty.
‎‎The Finance Minister noted that Government’s medium-term fiscal framework would continue to be guided by the fiscal rules contained in the amended Public Financial Management Act, with the debt-to-GDP ratio remaining the country’s principal fiscal anchor.
‎‎Background
‎The Policy Coordination Instrument is a non-financing programme designed to support countries implementing strong economic reforms while maintaining macroeconomic stability. Under the programme, Ghana has committed to sustaining fiscal discipline, advancing structural reforms and strengthening economic resilience.
‎‎The proposed reduction in the primary surplus target reflects Government’s intention to balance fiscal prudence with increased investment in productive sectors, using the gains from earlier fiscal consolidation to support infrastructure development and accelerate economic transformation.
