President John Dramani Mahama has told Parliament that his administration has significantly reduced government borrowing and tightened fiscal discipline as part of efforts to stabilise the economy and rebuild confidence in Ghana’s public finances.
Delivering the 2026 State of the Nation Address on Friday, February 27, the President said his government has adopted a strategy anchored in prudent economic management and responsible spending.
“We have borrowed less and spent more responsibly,” he stated, noting that unnecessary expenditures have been cut and greater emphasis placed on value for money in the use of public resources.
His remarks formed part of a broader review of the economy and outlined plans to strengthen fiscal management while sustaining growth and social development.
Public debt has remained a central issue in Ghana’s economic discourse in recent years. At the beginning of 2025, total public debt stood at approximately GH¢684.6 billion, representing about 48.9 per cent of GDP, following a decline attributed to fiscal reforms, tighter borrowing controls and improved cash management.
External debt levels have reduced notably, while domestic debt has remained relatively stable under stricter limits on local financing.
According to the President, Ghana’s debt-to-GDP ratio has fallen from about 61.8 per cent in late 2024 to roughly 45.3 per cent by the end of 2025, signalling what he described as a return to disciplined fiscal policy.
As Parliament considers the address, debate is expected to continue over Ghana’s evolving debt trajectory and the broader implications for economic management, fiscal sustainability and long-term growth.
