President John Dramani Mahama tells Parliament his administration has reduced borrowing and strengthened fiscal discipline, citing improvements in Ghana’s debt profile.
“We Have Borrowed Less and Spent More Responsibly” – President Mahama
President John Dramani Mahama has assured Parliament that his administration has curtailed government borrowing and adopted a more disciplined approach to public expenditure.
Speaking during the 2026 State of the Nation Address (SONA) on Friday, February 27, the President said the government’s economic strategy is anchored in prudent fiscal management aimed at stabilising the economy and restoring confidence in Ghana’s public finances.
“We have borrowed less and spent more responsibly,” he stated, emphasising efforts to eliminate wasteful spending and ensure value for money in the use of state resources.
The President’s comments formed part of a broader economic review, outlining measures to strengthen fiscal controls while maintaining support for growth and social development initiatives.
Ghana’s public debt has remained a major subject of national debate in recent years. At the beginning of 2025, total public debt stood at approximately GH¢684.6 billion, representing about 48.9 percent of GDP, following a notable reduction attributed to fiscal reforms, tighter borrowing practices and improved cash management.
External debt levels have reportedly declined significantly, while domestic debt has remained relatively stable under stricter controls on local financing.
According to the President, the debt-to-GDP ratio has fallen from about 61.8 percent in late 2024 to roughly 45.3 percent by the end of 2025 a development he described as evidence of renewed fiscal discipline.
As Parliament considers the address, discussions are expected to focus on the evolving debt trends under successive administrations and their implications for economic stability and long-term growth.
