By: Alexander Kukah
Ghana’s economic journey has entered another defining phase, with the presentation of the 2027 Budget Statement and Economic Policy providing an opportunity to assess the performance of the National Democratic Congress (NDC) government against the economic record of the previous New Patriotic Party (NPP) administration.
Beyond the political arguments and competing claims of economic success, the central question confronting Ghanaians is whether the country’s economic conditions have improved, whether the gains are sustainable and, most importantly, whether ordinary citizens are beginning to experience the benefits of economic recovery.
The 2027 Budget, presented by Finance Minister Dr Cassiel Ato Forson on November 12, 2026, under the theme “The New Economy, New Ghana, Jobs and Prosperity,” signals a shift in the government’s economic priorities from stabilisation and fiscal consolidation towards investment, industrial expansion and job creation.
The budget proposes total expenditure of GH¢389.2 billion and revenue and grants of GH¢323.4 billion for 2027. It also rules out the introduction of new taxes, while committing GH¢30 billion to the first phase of the government’s New Economy programme.
These proposals raise an important political and economic question: how does the NDC’s performance compare with the economic circumstances it inherited from the NPP, and what evidence exists to demonstrate that the country is moving in the right direction?
The economic scorecard: What the figures reveal
The NDC administration can point to measurable improvements in several macroeconomic indicators. According to the 2027 Budget Statement, inflation declined from 23.8 per cent in December 2024 to 5.4 per cent by the end of 2025, while public debt fell to 44.7 per cent of GDP. These developments followed the severe economic crisis that had pushed inflation to 54.1 per cent in 2022.
The recovery has also continued into 2026. Real GDP growth reached 6.2 per cent in the first half of the year, exceeding the government’s 4.8 per cent annual target. Non-oil GDP growth stood at 5.9 per cent, while inflation was recorded at 5.5 per cent in October 2026. Gross international reserves reached US$12.7 billion at the end of September, equivalent to 4.5 months of import cover.
These indicators provide a strong basis for the NDC government’s argument that its economic management has helped restore macroeconomic stability and rebuild confidence.
However, the comparison must go beyond the headline figures. The NPP’s record must be assessed across its eight years in government, including the period of economic expansion before the 2022 crisis, the COVID-19 shock, the subsequent debt distress and the circumstances in which it handed over power in January 2025.
Equally, the NDC must be assessed not only on the recovery it has achieved but also on whether that recovery is translating into better living conditions, employment opportunities and increased productive capacity.
From economic crisis to recovery: The NPP’s legacy and the NDC’s response
To understand the NDC’s current economic performance, it is important to revisit the circumstances that characterised the final years of the NPP administration under former President Nana Addo Dankwa Akufo-Addo.
The NPP assumed office in 2017 with considerable public expectations, particularly regarding industrialisation, infrastructure development, employment creation and economic transformation. Its flagship programmes included the One District, One Factory initiative, Planting for Food and Jobs, Free Senior High School and several infrastructure projects.
There were achievements in infrastructure, education, digitalisation and social interventions. However, the administration’s economic record was severely challenged by the financial difficulties that culminated in Ghana’s debt crisis and subsequent engagement with the International Monetary Fund.
By the end of 2022, inflation had reached 54.1 per cent, the country’s debt had become unsustainable, and international reserves had fallen to less than three weeks of import cover, according to figures presented in the 2027 Budget Statement.
The economic crisis had serious consequences for businesses, households, pensioners and investors. The Domestic Debt Exchange Programme also imposed significant losses and financial difficulties on bondholders and pension funds.
The NDC inherited these challenges in January 2025 and made economic stabilisation a central part of its policy direction.
Its performance since assuming office suggests that some of the immediate macroeconomic challenges have been addressed. The decline in inflation, improvement in international reserves, stronger economic growth and reduced borrowing costs represent important developments in the country’s economic recovery.
Nevertheless, the NDC must recognise that restoring economic stability is not the same as achieving economic prosperity. The ultimate measure of successful economic management is the extent to which citizens experience improvements in their daily lives.
The 2027 Budget: A new economic direction?
One of the most significant features of the 2027 Budget is the government’s decision to move from economic stabilisation towards productive investment and structural transformation.
The proposed GH¢30 billion allocation to the New Economy programme represents an ambitious attempt to address some of Ghana’s longstanding economic weaknesses, particularly its dependence on imported goods, raw material exports and limited domestic manufacturing capacity.
The programme focuses on commercial agriculture, industrialisation, affordable financing, energy, mineral value addition, pharmaceuticals, technology, textiles and garment manufacturing.
The government’s proposed US$10 billion investment programme between 2027 and 2030 is intended to create jobs, expand domestic production, increase exports and strengthen the private sector.
Additionally, the allocation of GH¢29.8 billion to the Big Push programme in 2027 demonstrates the administration’s intention to continue investing in road infrastructure and strategic transport corridors.
These are important policy directions. However, the success of the New Economy and Big Push programmes will depend on transparency, value for money, effective project execution and the government’s ability to ensure that public investments produce measurable economic returns.
Ghanaians have witnessed several ambitious economic programmes under successive governments. What the country needs now is not another cycle of political promises but effective implementation and measurable results.
Taxation, public debt and fiscal discipline
Another important issue in the 2027 Budget is the government’s decision not to introduce new taxes.
The administration has also highlighted the abolition of the E-Levy, COVID-19 Levy, Emissions Levy, withholding tax on betting and lottery winnings, and VAT on motor vehicle insurance.
These measures provide some relief to households and businesses, although the extent of their impact on the cost of living and business operations will require continued assessment.
The government has set a revenue and grants target of GH¢323.4 billion against projected expenditure of GH¢389.2 billion, with a cash-based fiscal deficit of 3.6 per cent of GDP.
The budget also allocates GH¢61 billion to interest payments, demonstrating that debt servicing remains a significant demand on public resources.
Indeed, despite the improvement in the debt-to-GDP ratio, Ghana’s public debt stood at GH¢759.3 billion at the end of October 2026, representing 47.5 per cent of GDP.
This is a reminder that the country’s debt challenges have not disappeared. The government must therefore maintain fiscal discipline and avoid returning to excessive borrowing and expenditure practices that previously undermined economic stability.
The NPP, on the other hand, must also be judged by its borrowing decisions, fiscal management and the economic consequences of its tenure, rather than focusing exclusively on the difficulties inherited by the NDC.
The real test: Jobs, incomes and the cost of living
Perhaps the most important question surrounding the NDC’s economic performance is whether the recovery is being felt by ordinary Ghanaians.
Although inflation has declined considerably, lower inflation does not mean that prices have returned to their previous levels. It means that prices are increasing at a slower rate.
For households already struggling with accumulated increases in food prices, transportation costs, rent, utility bills and education expenses, the difference between economic statistics and actual living conditions remains significant.
Employment is another major concern. The 2027 Budget Statement acknowledges that unemployment stood at approximately 12.8 per cent in 2025.
This presents a major challenge for the government, particularly given the expectations of young people who voted for economic opportunities, decent employment and improved livelihoods.
The New Economy programme, the 24-Hour Economy initiative and increased investment in agriculture and manufacturing must therefore translate into sustainable jobs rather than remain policy announcements.
The government must also ensure that small and medium-sized enterprises, which provide significant employment opportunities, have access to affordable credit, reliable electricity and a predictable business environment.
Economic recovery becomes meaningful when the market woman can preserve her capital, the farmer can access a ready market, the graduate can secure employment and the entrepreneur can expand a business without being overwhelmed by borrowing costs.
NDC versus NPP: Beyond political propaganda
The economic comparison between the NDC and NPP must be grounded in facts, institutional performance and the lived experiences of Ghanaians.
The NPP’s eight-year administration recorded achievements in several sectors but also presided over a period of severe economic distress, debt restructuring and an IMF-supported recovery programme.
The NDC, having assumed office in January 2025, has demonstrated improvements in key macroeconomic indicators, particularly inflation, economic growth, international reserves and fiscal performance.
However, it must still demonstrate that these improvements can be sustained and translated into employment, higher incomes, industrial growth and improved living conditions.
It would therefore be premature to declare the NDC’s economic transformation complete. Equally, it would be unfair to disregard the measurable progress recorded in the stabilisation process.
The real distinction between the two administrations should ultimately be determined by their ability to manage public resources responsibly, strengthen institutions, create employment and improve the economic welfare of citizens.
Conclusion: The responsibility to sustain the gains
The 2027 Budget provides the NDC government with an opportunity to consolidate the economic gains achieved since 2025 and establish a stronger foundation for long-term national development.
The transition from stabilisation to transformation is necessary, but it also comes with significant responsibilities.
President John Dramani Mahama and his economic management team must ensure that the fiscal space created through improved revenue mobilisation and expenditure controls is directed towards productive sectors of the economy.
The government must also guard against complacency, excessive political spending, corruption, poor project execution and the temptation to sacrifice long-term economic stability for short-term political popularity.
For the NPP, the responsibility is to provide constructive scrutiny and credible alternatives rather than merely dismissing economic improvements for partisan purposes.
Ultimately, Ghana’s economic development should not become a contest of political propaganda between the two major political parties.
The NDC must be judged by what it delivers, just as the NPP must be judged by its record in office.
The 2027 Budget presents an opportunity to move Ghana beyond economic recovery towards sustainable prosperity. The real question is whether the NDC can convert the gains of stabilisation into jobs, stronger businesses, improved incomes and a better standard of living for the Ghanaian people.
That is the true measure of economic performance, and that is the standard against which both the NDC and NPP must be judged.