President John Dramani Mahama has informed Parliament that his administration has tightened budgetary restraint in public spending and drastically decreased government borrowing.
The President stated that the government’s plan to stabilize the economy and restore trust in Ghana’s finances is based on sound economic management in his 2026 State of the Nation Address, which was given on Friday, February 27.
“We have borrowed less and spent more responsibly,” President Mahama said.
His comments were a component of a larger evaluation of the economy and the government’s strategy to improve budgetary management while promoting social development and growth.
In recent years, Ghana’s public debt profile has been a major concern.
After a considerable reduction in the total debt stock brought about by fiscal reforms, stricter borrowing, and improved cash management, the entire public debt was approximately GH¢684.6 billion (about 48.9% of GDP) at the beginning of 2025. Due to stricter supervision over local funding, domestic debt has stayed mostly steady while external debt has significantly decreased.
The debt-to-GDP ratio, a crucial sign of more restrained fiscal policy, decreased from over 61.8 percent in late 2024 to approximately 45.3% by the end of 2025 during President Mahama’s first year back in office.
Debates over fiscal sustainability, economic management, and the path to growth will continue to center on the divergent debt paths under succeeding administrations as Parliament processes the President’s speech.
Source: Mybrytfmonline.com/Joseph Asare
