Ghana is expected to gain additional fiscal space equivalent to 1.0% of Gross Domestic Product (GDP) from 2027 after the International Monetary Fund (IMF) agreed to a reduction in the country’s primary surplus target.
The adjustment represents a significant change in Ghana’s ongoing economic recovery and debt restructuring programme, shifting the focus from aggressive fiscal consolidation towards a more balanced strategy that supports debt sustainability, economic growth and development spending.
Under the revised framework, Ghana’s primary surplus target on a commitment basis will be reduced from 1.50% of GDP to 0.50% of GDP.
The lower fiscal target is expected to provide the government with greater flexibility to allocate public funds to key national priorities, including infrastructure development, social protection programmes and other economic development projects.
The additional fiscal space could also support government efforts to sustain economic growth while maintaining the broader fiscal discipline required to protect Ghana’s ongoing economic recovery.
The revised IMF target highlights a shift towards balancing fiscal consolidation with development needs, as Ghana continues efforts to strengthen public finances, manage debt and create conditions for sustainable economic growth.
Source: newsthemegh.com