2027 budget should ensure fiscal discipline, direct investment towards productive enterprises and jobs – Deloitte

Deloitte Ghana has urged for fiscal responsibility in the 2027 budget, emphasizing productive investments and job creation. The firm's pre-budget analysis suggests that while Ghana's real GDP grew by 6.0% in Q2 2026 and inflation was at 5.5% in October, a balanced budget is crucial for sustaining economic stability. The government's policy theme of "New Economy, New Ghana: Jobs and Prosperity" indicates a focus on productive investment and employment.

Deloitte believes that lower inflation provides businesses with a solid basis for pricing and investment planning, but it does not guarantee stronger demand in every market. The firm recommends that leaders utilize this stability to review expansion projects based on actual customer demand. The 2024 Integrated Business Establishment Survey showed that nine out of ten establishments are micro-enterprises, with only 7.7% classified as formal.

This highlights the need for tax administration to focus on expanding the tax base and improving compliance rather than introducing new headline taxes. Deloitte stresses that additional public investment can only create lasting business value when projects remove production bottlenecks, emphasizing the necessity of increased fiscal discipline.

The government's proposal to reduce the primary surplus from 1.5% to 0.5% of GDP, freeing up budget room for the new economy, is seen as a step in the right direction. However, targeted spending is required to ensure maximum returns. With youth unemployment remaining a significant issue, public investment must support sustainable job creation.

Programs like the 24-Hour Economy and Accelerated Export Development Programme aim to create 1.7 million jobs by the end of 2028, but their success depends on implementation. Country Managing Partner Daniel Owusu of Deloitte Ghana called for better compliance and enforcement in revenue mobilization and urged the exploration of viable funding options for deferred infrastructure projects.

Deloitte advises that businesses should use the approved budget as an immediate input into their 2027 strategies, pricing, investment spending, and planning for desired economic outcomes.