The organisation said the budget had responded to some of the central proposals it and its partners presented ahead of the fiscal policy statement, particularly the reduction in the primary surplus target to 0.5 per cent of Gross Domestic Product (GDP) and the allocation of GH¢30 billion to the New Economy investment programme in 2027.
It also welcomed the GH¢100.4 billion capital expenditure allocation, which is now higher than interest payments, government’s commitment to promote local processing of cocoa, gold, manganese and bauxite, and local procurement rules for food, textiles and medicines.
However, ISODEC said these commitments were not backed by sufficient implementation details, including clear employment targets, timelines and transparent reporting arrangements.
In its provisional assessment of the budget, signed by its Executive Director, Samson Salifu Danse, the organisation said: “The 2027 Budget partly meets expectations. It delivers ISODEC’s central macroeconomic asks, a lower primary surplus target and a larger share of spending for productive investment, but it does not yet translate this shift into a measurable jobs target, transparent execution and reporting, or protections for equity and revenue integrity.”
Against the 28 proposals contained in its pre-budget statement, ISODEC said five had been met, 15 partly met and eight not met.
It noted that although the primary surplus target had been reduced from 1.5 per cent of GDP in 2026 to 0.5 per cent in 2027, the government had not provided an execution target or committed to quarterly reporting on the release and use of funds under the New Economy programme.
The organisation expressed concern about the implementation of capital projects, citing the under-execution of primary spending in 2026, which it said was 3.4 per cent below target as of October.
Government must explain how it will ensure that approved capital allocations translate into completed projects and economic activity,” it said.
Jobs target and funding
On employment, ISODEC welcomed the removal of the cap on youth employment funding, which provides an additional GH¢1 billion, as well as the GH¢2 billion allocation for youth employment and skills development.
It also acknowledged projected employment opportunities in selected sectors, including about 125,000 jobs from rice production, more than 250,000 potential jobs from oil palm and approximately 20,000 jobs in the pharmaceutical industry.
However, it said the budget did not establish a specific employment target for 2027 or provide a consolidated jobs target across the eight pillars of the New Economy programme.
The organisation said the absence of clear details on how jobs would be measured made it difficult to determine whether the proposed interventions were sufficient to address unemployment and youth exclusion.
It further described the absence of a public employment guarantee pilot, particularly in deprived districts in northern Ghana, as a missed opportunity.
ISODEC proposed that government use labour-intensive public investments in climate adaptation, irrigation, feeder roads, care and community services to create paid employment while addressing pressing development needs.
Production and local value addition
The organisation described the GH¢30 billion New Economy programme, forming part of a US$10 billion investment plan for 2027 to 2030, as ambitious and appropriately targeted.
The programme includes US$3 billion for commercial agriculture, US$1.5 billion for critical minerals value addition, and US$1 billion each for textiles and pharmaceuticals.
However, ISODEC said the 2027 allocation across the eight pillars had not been clearly outlined, while funding for some key ministries remained limited.
It cited allocations of GH¢188 million for the Ministry of Trade, Agribusiness and Industry and GH¢156 million for the Ministry of Labour, Jobs and Employment.
It called for measurable targets covering manufacturing value addition, agro-processing capacity and local content to be attached to each investment pillar.
The organisation welcomed plans to reduce imports through local production, including the proposed ban on commercial rice imports by 2030, efforts to achieve sugar and poultry self-sufficiency, local production of between 60 and 80 per cent of essential medicines by 2030, and the target to refine at least 70 per cent of small-scale gold locally by December 2027.
It nevertheless urged government to disclose the foreign-exchange requirements of major projects under the New Economy and Big Push programmes, as well as expected foreign-exchange earnings and savings.
Revenue and social protection
On revenue mobilisation, ISODEC welcomed the government’s decision not to introduce new taxes, alongside plans to review and modernise the Income Tax Act and Revenue Administration Act and examine Double Taxation Agreements.
However, it expressed concern about the absence of a tax expenditure statement, particularly as the budget introduces new exemptions and incentives for solar equipment, rice hubs, SSNIT hotels and medical tourism.
It also called for stronger measures to address trade mis-invoicing and transfer pricing, arguing that government should tackle revenue leakages and improve compliance before introducing measures that could increase the financial burden on households and workers.
The organisation acknowledged allocations of GH¢10.2 billion to the National Health Insurance Scheme, GH¢1.1 billion to the Livelihood Empowerment Against Poverty (LEAP) programme, GH¢2.1 billion for the School Feeding Programme and GH¢10.8 billion for the District Assemblies Common Fund.
It also welcomed the proposed US$1 billion Pwalugu Multipurpose Dam, GH¢820 million for the northern Ghana water system and GH¢3 billion for rural electrification in the northern and western regions.
But it cautioned that budgetary allocations alone did not demonstrate improved support for vulnerable communities, stressing the need for timely releases and evidence that resources reached areas with the greatest needs.
ISODEC called for regional and district breakdowns of capital expenditure per person, as well as assessments of the effects of tax and spending decisions on different income groups, women and regions.
Call for stronger oversight
On accountability, ISODEC welcomed proposals for a Natural Resource Revenue Management Act, a Loans Act and an annual Investment-Grade Readiness Report.
It, however, said the budget was silent on the mandate of the proposed Independent Fiscal Council, the establishment of a Parliamentary Budget Office and commitments under the IMF Policy Coordination Instrument.
The organisation urged government to empower the Fiscal Council to assess employment and distributional outcomes alongside fiscal performance, with its reports submitted to Parliament.
It also called for quarterly reports detailing budget allocations, releases and actual expenditure by ministry, programme and region.
ISODEC urged Parliament to use its consideration of the budget estimates to demand clearer funding arrangements and measurable targets for employment, productive investment, regional equity and revenue integrity.
It further called on government to publish its full commitments under the IMF Policy Coordination Instrument and identify the policy measures linked to external programme conditions.
Overall, the 2027 Budget makes a welcome shift from stabilisation towards investment and production. To succeed, Ghana needs a coherent, funded and accountable programme that puts people to work, strengthens domestic production and distributes opportunity fairly,” the statement said.
ISODEC said it would publish a detailed analysis, scorecard and policy briefs for Parliament, organised labour, industry and citizen groups in due course.
