The opposition New Patriotic Party (NPP) has questioned the government’s ability to finance its proposed US$10 billion New Economy programme, describing it as another ambitious promise that risks becoming a slogan without a credible funding plan.
The party is also accusing the government of prioritising favourable economic statistics over the living conditions of ordinary Ghanaians, arguing that improvements in headline inflation, exchange rate stability and economic growth have not translated into meaningful relief for households.
In its assessment ahead of the presentation of the 2027 Budget, the NPP challenged the Finance Minister to provide details of the funding arrangements, implementation timelines, and expected employment returns of the proposed programme.
The party questioned how the government intended to mobilise US$10 billion for the New Economy when it had struggled to raise the US$4 billion originally proposed for the 24-Hour Economy programme.
According to the NPP, the original programme was expected to receive between US$300 million and US$400 million in government seed capital, but the 2026 Budget provided only GH¢110 million.
It further argued that the government’s ability to finance the new initiative was undermined by cuts to capital expenditure.
The party cited a 39.3 per cent shortfall in capital spending against its target in the first half of 2026 and a subsequent GH¢5 billion reduction in capital expenditure to support gold purchases by GoldBod.
It also questioned the government’s spending priorities, pointing to unpaid promotion arrears and allowances affecting teachers, as well as more than GH¢10 billion allegedly owed to cocoa farmers for beans already delivered.
The NPP maintained that the government must publish a detailed financing plan showing how much of the US$10 billion would come from public expenditure, private equity, public-private partnerships, concessional financing and commercial borrowing.
It warned that without clear funding arrangements and measurable targets, the New Economy programme could suffer the same implementation challenges as the 24-Hour Economy initiative.
NPP raises concerns over economic recovery
The party also questioned whether Ghana’s macroeconomic improvements were translating into broad-based economic recovery and employment creation.
Although real GDP growth increased from 5.8 per cent in 2024 to 6.0 per cent in 2025, the NPP argued that the marginal improvement did not provide sufficient evidence of stronger productive investment or employment opportunities.
It cited Bank of Ghana data indicating that non-oil GDP growth slowed from 8.5 per cent in the second quarter of 2025 to 5.4 per cent in the corresponding period of 2026.
Agricultural growth also declined from 7.1 per cent to 3.9 per cent over the same period.
The party argued that the government must provide evidence of job creation, investment, productivity improvements and real wage growth rather than relying primarily on aggregate economic growth figures.
It also expressed concern about Ghana’s growing reliance on gold exports to strengthen its external position, questioning the sustainability of the strategy if international gold prices decline.
Household cost-of-living pressures
On the cost of living, the NPP said households continued to face significant financial pressures despite the government’s claims of declining inflation.
It pointed to increases in electricity tariffs, water bills, petroleum prices, transport fares and agricultural input costs.
According to the party, electricity tariffs recorded several increases between 2025 and July 2026, while water tariffs also rose during the period.
It further cited an 8 per cent increase in public transport fares from September 26, 2026, and higher petroleum prices in October.
The NPP criticised the government’s handling of cocoa producer prices, recalling that the price was reduced from GH¢3,625 to GH¢2,587 per bag on February 12, 2026, representing a reduction of nearly 29 per cent.
It said the reduction came at a time when cocoa farmers were reportedly owed more than GH¢10 billion for produce already delivered.
The party also raised concerns about delays in the payment of teachers’ promotion arrears and the implementation of the 20 per cent deprived-area allowance, which it said had been postponed to January 2027 following the suspension of a nationwide teachers’ strike.
Inflation and monetary policy under scrutiny
The NPP also challenged the government’s celebration of the decline in inflation to 5.5 per cent, arguing that lower inflation had not necessarily translated into improved purchasing power.
It cited the Bank of Ghana’s 2025 accounts, which it said showed that GH¢93.56 billion was withdrawn from circulation through liquidity management operations.
The party further claimed that the central bank spent GH¢16.73 billion in 2025 to pay banks for holding liquidity, raising concerns about the financial cost of its monetary policy operations.
It argued that tight monetary conditions had affected businesses, traders and households by restricting liquidity and weakening consumer demand.
The NPP also questioned the impact of lower interest rates on access to credit, claiming that private sector credit remained below 8 per cent of GDP.
It compared this with 16.1 per cent in 2017, when the NPP assumed office, and argued that traders, farmers and small-scale manufacturers continued to struggle to access affordable financing.
Cedi depreciation and foreign reserves
On the exchange rate, the party questioned the sustainability of the cedi’s appreciation in 2025, arguing that significant foreign exchange interventions had contributed to the currency’s performance.
It claimed that the cedi had lost approximately 10.5 per cent of its value against the US dollar by early November 2026.
The NPP further cited market reports indicating that the Bank of Ghana sold approximately US$9.2 billion into the foreign exchange market between January and August 2026.
It said the country’s international reserves declined from approximately US$14.5 billion in February to US$11.1 billion in August.
The party also raised concerns about the government’s reliance on small-scale gold purchases to generate foreign exchange, arguing that the absence of an effective gold traceability system could create incentives for illegal mining.
It warned that the strategy could worsen environmental destruction, particularly the pollution of water bodies, while exposing local industries to exchange rate volatility.
NPP outlines demands ahead of 2027 Budget
Ahead of the 2027 Budget, the party called on the Finance Minister to publish the full cost of the Bank of Ghana’s liquidity management operations and provide a clear plan for recapitalising the central bank.
It also demanded monthly disclosures of foreign exchange interventions, details of the contribution of small-scale gold purchases to foreign exchange supplies and a timetable for implementing full gold traceability.
Other demands include a minimum wage framework linked to the cost of essential goods and services, a comprehensive assessment of regulated price increases and a verified employment record covering government programmes in 2025 and 2026.
The NPP further called for a detailed financing plan for the New Economy programme before any public funds are committed.
The party said the government must demonstrate how its economic policies would improve household incomes, expand access to credit, strengthen local industries and create sustainable jobs.
It maintained that economic performance should be measured not only by inflation, exchange rates and GDP growth, but also by the purchasing power of households, business activity and employment opportunities.
NPP accuses govt of managing economy for headlines, not households
However, the NPP has accused the government of prioritising favourable economic statistics over the financial wellbeing of ordinary Ghanaians, arguing that improvements in headline inflation, interest rates and exchange rate figures have not translated into meaningful relief for households.
The party says the government’s economic management has focused on presenting impressive figures rather than addressing the challenges facing workers, traders, businesses and households.
Speaking ahead of the presentation of the 2027 Budget, the NPP argued that Ghanaians must look beyond official economic statistics and examine how government policies affect their daily lives.
“Our message is simple. This Government has chosen to manage the economy for the headline, not the household; for the paper, not the pocket,” the party stated.
NPP questions inflation reduction strategy
The party challenged the government’s celebration of the decline in inflation to 5.5 per cent, arguing that the reduction was achieved largely through tight monetary policies rather than increased production and lower living costs.
It cited the Bank of Ghana’s 2025 accounts, which it said showed that GH¢93.56 billion was withdrawn from circulation through liquidity management operations.
According to the NPP, the central bank also spent GH¢16.73 billion in 2025 paying banks to hold excess liquidity, contributing to its financial losses.
The party maintained that the prolonged tightening of monetary conditions had affected businesses, traders and households by restricting access to money and weakening consumer demand.
It further argued that inflation had remained below the lower boundary of the Bank of Ghana’s target band for 11 consecutive months, from December 2025 to October 2026.
The NPP said the consequences were evident in declining business sales, reduced household spending and persistent unemployment.
It cited reports from the Association of Ghana Industries indicating that businesses had experienced falling sales and liquidity challenges, while some household-facing services, including chop bars and hotels, recorded a contraction of 7.2 per cent in the third quarter of 2025.
The party also pointed to unemployment figures, which stood at 13.1 per cent at the end of 2024, declined to 12.6 per cent in the second quarter of 2025 before rising again to 13 per cent in the third quarter.
Electricity, transport and water costs exceed inflation
The NPP also questioned the relationship between the official inflation rate and the actual cost of essential goods and services.
It argued that several household expenses, including electricity, water, transportation, housing and education, had increased faster than headline inflation and minimum wage adjustments.
According to figures presented by the party, electricity tariffs recorded a cumulative increase of 28.7 per cent since January 2025, despite a reduction in April 2026.
Water tariffs increased by a combined 13.3 per cent in 2026, while transport costs rose by 14.1 per cent between October 2025 and October 2026.
Housing, rent and utilities increased by 10.5 per cent, school fees by 9.4 per cent and services overall by 11.5 per cent over the periods cited.
The party said these increases had placed additional pressure on workers, particularly those whose incomes had not kept pace with rising household expenses.
It also questioned the cost of replacing the Ghana Card, which it said now stood at GH¢200.
The NPP argued that the minimum wage adjustment of 9 per cent in 2026 was insufficient to offset increases in essential expenses.
It accused the government of increasing the cost of living through regulated price adjustments while simultaneously presenting declining inflation as evidence of economic improvement.
NPP raises concerns over limited private sector credit
The opposition party further criticised the government’s monetary policy, arguing that reductions in interest rates had not translated into improved access to credit for businesses.
It said private sector credit remained below 8 per cent of GDP, compared with approximately 32 per cent in Kenya and 36 per cent across sub-Saharan Africa.
The party also claimed that banks were lending only about 36 pesewas out of every cedi deposited with them.
Comparing the situation with previous years, the NPP said private sector credit stood at 16.1 per cent of GDP in 2017 and remained above 13 per cent between 2018 and 2022.
However, it declined to 9.4 per cent in 2023 and 8.9 per cent in 2024 before falling further to approximately 7.4 per cent in 2025, according to figures cited by the party.
The NPP argued that traders, farmers and small-scale manufacturers continued to struggle to access affordable financing despite the government’s claims of improving monetary conditions.
It maintained that reducing the policy rate alone would not solve the problem unless banks increased lending to productive sectors of the economy.
Cedi depreciation raises questions over foreign reserves
The party also raised concerns about the sustainability of the cedi’s appreciation in 2025, arguing that the currency’s performance was supported by substantial foreign exchange interventions.
It claimed that the cedi had depreciated by approximately 9.5 per cent by September 2026 and nearly 10.5 per cent by early November.
The NPP further cited market reports indicating that the Bank of Ghana sold approximately US$9.2 billion into the foreign exchange market between January and August 2026, including US$2.01 billion in June alone.
It said international reserves declined from approximately US$14.5 billion in February to US$11.1 billion in August, representing a reduction of more than US$3 billion.
The party also pointed to an estimated GH¢8.3 billion loss recorded by the central bank in 2025 from exchange rate movements on its foreign assets and gold.
It questioned the country’s growing reliance on small-scale gold purchases to generate foreign exchange, arguing that the absence of an effective gold traceability system could create incentives for illegal mining.
According to the NPP, GoldBod reported approximately US$1.87 billion from small-scale gold trading in September alone.
The party warned that the strategy could have serious environmental consequences, particularly through the destruction of water bodies associated with illegal mining.
It also said local manufacturers were being squeezed by both currency appreciation and depreciation, explaining that the stronger cedi had increased competition from imports while subsequent depreciation raised the cost of imported machinery and raw materials.
NPP outlines demands ahead of 2027 Budget
Ahead of the 2027 Budget presentation, the NPP has outlined several demands it wants the Finance Minister to address.
The party is demanding full disclosure of the cost of the Bank of Ghana’s liquidity management operations in 2026, alongside a clear timetable and funding arrangements for recapitalising the central bank.
It also wants monthly disclosures of foreign exchange interventions, the contribution of small-scale gold purchases to foreign exchange supplies and GoldBod’s timetable for implementing a comprehensive gold traceability system.
Other demands include setting the 2027 minimum wage against the actual cost of essential goods and services, publishing the Tripartite Committee’s technical report and disclosing the combined effect of regulated price increases approved in 2025 and 2026.
The NPP has also called for a comprehensive financing plan for the government’s proposed New Economy programme before public funds are committed.
Additionally, it wants the government to publish a verified employment record covering its programmes in 2025 and 2026 and release the 2026 labour force data before the budget debate concludes.
The party further called for a credible strategy to improve access to credit for traders, farmers and small-scale manufacturers.
NPP says GH¢650bn has failed to deliver flagship promises
Concluding its assessment, the NPP accused the government of failing to translate public expenditure into meaningful economic improvements despite spending approximately GH¢650 billion in taxpayers’ money over the past two years.
It argued that the 2027 Budget presents an opportunity for the government to move beyond economic announcements and headline statistics and focus on improving household incomes, business activity and employment.
“An economy is not run for the statistician. Inflation figures, exchange rates and interest rates matter only if they translate into money in people’s pockets, goods in traders’ shops and jobs for our young people,” the party stated.
The NPP said the government must demonstrate that its economic policies are improving the everyday lives of Ghanaians rather than relying on favourable macroeconomic indicators.
