Ranking Member of Parliament’s Economy and Development Committee, Kojo Oppong Nkrumah, has questioned the Mahama administration’s fiscal strategy after it returned to Parliament seeking approval for nearly $1 billion in new loans just nine weeks after Ghana exited the International Monetary Fund (IMF) Extended Credit Facility (ECF) programme.
Speaking during debate on a motion to approve several international financing agreements, the Ofoase-Ayirebi MP argued that Parliament should assess the cumulative impact of the proposed borrowing rather than consider each loan individually.
Opening his contribution with the French expression, “Plus ça change, plus c’est la même chose”—meaning “the more things change, the more they remain the same”—Mr Oppong Nkrumah said the government’s continued reliance on external borrowing raises questions about its fiscal strategy despite celebrating Ghana’s exit from the IMF programme on May 15, 2026.
According to him, Parliament is now being asked to approve a borrowing package comprising approximately $300 million for the education sector, $500 million for road infrastructure, about $22 million for the Ministry of Finance, in addition to roughly $180 million in net borrowing already provided for in the 2026 Budget.
Mr Oppong Nkrumah stressed that the Minority does not oppose the projects the loans are intended to finance. He noted that development financing can play an important role in national development and said his concerns centre on the pace of borrowing following the conclusion of the IMF-supported programme.
The former Information Minister recalled that the government had indicated in the 2026 Budget that it would increase domestic revenue to 18 per cent of Gross Domestic Product (GDP) while removing selected taxes. Although he had welcomed that target, he said official fiscal reports suggest it has not yet been achieved.
He stated that one government report places Ghana’s revenue-to-GDP ratio at 15.7 per cent, while another estimates it at 16 per cent, arguing that the figures show limited improvement over the levels inherited by the current administration.
“It is because the domestic resource mobilisation measures are not performing that nine weeks after the IMF left town, they have gone back to the debt markets and are asking Parliament to approve close to one billion dollars,” he said.
Mr Oppong Nkrumah further cautioned that continued borrowing without stronger domestic revenue mobilisation could undermine Ghana’s long-term debt sustainability. He also criticised what he described as government spending priorities, arguing that increasing resources are being channelled into quasi-fiscal operations instead of key development programmes.
Referring to the Bank of Ghana’s 2025 financial statements, he claimed that approximately GH¢16 billion had been spent on sterilisation operations, while gold-related losses amounted to about GH¢9.6 billion.
He called on the government to strengthen domestic revenue mobilisation and adopt a whole-of-government approach to expenditure management to reduce the country’s dependence on external financing.
Mr Oppong Nkrumah concluded by reaffirming the Minority’s support for the proposed loan agreements but maintained that the government must address weaknesses in revenue generation and spending management to prevent renewed debt pressures.
