The Country Senior Partner of PwC Ghana, George Arhin, has urged the government to make efficient public spending and investment in productive sectors a major priority in the 2027 Budget to accelerate economic growth and sustain Ghana’s recent macroeconomic stability.
Mr Arhin said the next national budget should focus on directing public resources towards sectors capable of creating employment, increasing productivity, attracting private investment and strengthening the country’s economic transformation agenda.
According to him, although the 2026 Budget achieved its primary objective of stabilising the economy, the government must now concentrate on converting the gains into sustainable, private sector-led economic growth.
He made the remarks in an interview in Accra last Friday, ahead of the presentation of the 2027 Budget Statement and Economic Policy to Parliament by Finance Minister Dr Cassiel Ato Forson on Thursday.
Mr Arhin, who assumed office as PwC Ghana’s Country Senior Partner nearly a month ago, identified agriculture, agro-processing, manufacturing, textiles and tourism as critical sectors requiring increased government investment.
He explained that these industries have significant potential to expand Ghana’s productive capacity, create decent jobs, improve household incomes and attract private sector participation.
PwC Ghana Calls for Efficient Public Spending in 2027 Budget
Mr Arhin stressed that increasing government expenditure alone would not guarantee economic growth unless public funds were properly allocated to projects capable of delivering measurable economic benefits.
He noted that government expenditure programmes increased from approximately GH¢268.8 billion in the 2025 Budget to GH¢302.5 billion in the 2026 Budget.
He therefore expects the government to increase productive investment in 2027 while ensuring that every cedi spent delivers value for money.
According to him, public expenditure must support businesses, strengthen local industries, generate employment and improve the productive capacity of the economy.
He further explained that investments in agriculture, agro-processing, manufacturing, textiles and tourism would help attract private capital and support the objectives of the government’s proposed US$10 billion New Economy Programme.
Mr Arhin maintained that efficient resource allocation would be essential to maintaining economic stability while accelerating industrial development and sustainable economic growth.
US$10 Billion New Economy Programme Described as Game-Changer
The PwC Ghana Country Senior Partner described the government’s US$10 billion New Economy Programme as an important opportunity to transform Ghana’s economic structure.
The programme, covering the 2027–2030 period, is expected to promote domestic production, expand local manufacturing, encourage value addition, strengthen Ghanaian businesses and create employment opportunities.
He explained that the success of the initiative would depend largely on how effectively the allocated funds were utilised.
According to him, the programme should focus on strengthening the real sectors of the economy, particularly agriculture, manufacturing, agro-processing, textiles, tourism and value addition in the extractive industry.
He also encouraged businesses and investors to identify emerging investment opportunities and position themselves to benefit from sectors expected to receive government support.
Mr Arhin emphasised that the initiative should go beyond government expenditure and become a catalyst for private sector investment, formal employment creation and increased domestic revenue mobilisation.
He expressed confidence that effective implementation of the programme could significantly improve Ghana’s economic performance.
Agriculture Must Contribute More to Ghana’s Tax Revenue
Mr Arhin also highlighted the need to formalise Ghana’s agricultural sector to improve productivity, expand the tax base and increase domestic revenue mobilisation.
He observed that agriculture contributes approximately 21 per cent of Ghana’s Gross Domestic Product (GDP) and provides employment for about 33 per cent of the population but accounts for only 0.05 per cent of the country’s tax revenue.
He said the disparity demonstrates the need for policies that would support the transition from smallholder farming to commercial agriculture while encouraging investment in agro-processing.
According to him, moving more agricultural activities into the secondary sector through processing and value addition would create formal employment opportunities and bring additional businesses and workers into the tax system.
He argued that Ghana’s revenue mobilisation strategy should focus less on introducing new taxes or increasing existing tax rates and more on expanding the number of individuals and businesses participating in the formal economy.
This, he explained, would strengthen government revenue without placing additional pressure on existing taxpayers.
Ghana Needs Sustained Double-Digit Economic Growth
The PwC executive further indicated that Ghana must move beyond its current economic growth rate of approximately 5.5 per cent and pursue sustained double-digit growth to achieve meaningful economic transformation.
He noted that the economy’s ability to record growth of between five and six per cent despite reduced government expenditure and tight monetary policies demonstrates its potential for further expansion.
However, he stressed that achieving higher and sustainable growth would require increased investment in productive sectors, including agriculture, manufacturing, tourism and the extractive industry’s value addition activities.
Mr Arhin said expanding these industries would strengthen domestic production, create employment opportunities and improve Ghana’s competitiveness.
He maintained that sustained double-digit economic growth would be necessary to significantly transform the economy and improve living standards.
Ato Forson to Present 2027 Budget on Thursday
Finance Minister Dr Cassiel Ato Forson is expected to present the 2027 Budget Statement and Economic Policy to Parliament on Thursday.
The budget, expected to be presented under the theme ‘The New Economy’, will be the third national budget of President John Dramani Mahama’s administration since it assumed office in January 2025.
The policy document is expected to outline the government’s strategy for translating recent macroeconomic improvements into productive investments, decent employment, higher incomes and sustainable business growth.
A major area of interest will be the implementation of the proposed US$10 billion New Economy Programme, which is designed to stimulate private sector-led economic expansion, strengthen domestic production and promote local value addition.
Mr Arhin cautioned that Ghana should not depend indefinitely on favourable external developments, particularly higher international gold prices, to sustain its economic recovery.
He explained that the country’s recent macroeconomic stability had been supported by disciplined monetary and fiscal policies, alongside favourable external conditions.
However, he argued that these external factors could change, making it necessary for Ghana to strengthen domestic revenue mobilisation and create an enabling environment for private sector investment.
He therefore urged the government to use the 2027 Budget to establish a sustainable foundation for economic growth through productive public spending, industrial expansion and stronger private sector participation.
According to him, translating economic stability into sustainable growth will be critical to Ghana’s long-term economic transformation.
Source: newsthemegh.com