President John Dramani Mahama has said his government is borrowing less and tightening its grip on public spending.
Speaking during the 2026 State of the Nation Address on Friday, February 27, he said his administration is focused on disciplined economic management to steady the economy and restore confidence in Ghana’s finances.
“We have borrowed less and spent more responsibly,” the President said, stressing that his government has moved away from wasteful expenditure and is insisting on value for money in how public funds are used.
The comments were part of a wider review of the economy and a roadmap for keeping the books in order while still investing in growth and social programmes.
Public debt has dominated Ghana’s economic conversation in recent years, and the latest figures show a notable shift. At the beginning of 2025, total public debt stood at about GH¢684.6 billion, roughly 48.9 percent of GDP, reflecting a sharp drop in the overall debt stock. The decline has been driven by fiscal reforms, tighter borrowing controls and improved cash management.
External debt has fallen significantly, while domestic debt has largely stabilised under stricter limits on local financing.
In his first year back in office, the debt-to-GDP ratio has dropped from about 61.8 percent in late 2024 to an estimated 45.3 percent by the end of 2025 — a key signal, the government argues, of stronger fiscal discipline.