President Mahama touts fiscal discipline, says borrowing has declined
2026 State of the Nation Address highlights debt reduction, responsible spending, and renewed confidence in Ghana’s finances.
President John Dramani Mahama has declared that his administration is steering Ghana toward fiscal stability by cutting borrowing and tightening public spending. Addressing Parliament on Friday, February 27, during the State of the Nation Address, Mahama underscored a shift toward prudent economic management aimed at rebuilding confidence in the country’s finances.
“We have borrowed less and spent more responsibly,” he told lawmakers, framing the policy as a deliberate break from past practices of unchecked debt accumulation.
Ghana’s public debt has been a central issue in recent years, with concerns about sustainability dominating economic debates. At the start of 2025, total public debt stood at about GH¢684.6 billion, roughly 48.9% of GDP, following reforms that tightened borrowing and improved cash management.
Under Mahama’s first year back in office, the debt-to-GDP ratio fell from 61.8% in late 2024 to 45.3% by the end of 2025. The reduction, driven by fiscal reforms and stricter controls on financing, marks one of the sharpest declines in recent memory. External debt has eased significantly, while domestic debt has remained stable under tighter oversight.
Mahama stressed that the government’s fiscal discipline is not only about borrowing less but also about ensuring value for money. Cutting unnecessary expenditure and prioritising efficiency, he argued, has allowed the administration to support growth and social development without expanding the debt burden.
The President positioned this approach as evidence of a government committed to stabilising the economy while laying foundations for long-term sustainability.
As Parliament digests the President’s address, the contrasting debt trajectories under successive governments are likely to remain at the centre of political debate. For Mahama, the numbers serve as proof that fiscal responsibility can coexist with development spending. For critics, the challenge will be whether these gains can be sustained in the face of external shocks and domestic demands.
Mahama’s message was clear: Ghana’s economic recovery is being built on discipline. By borrowing less and spending more responsibly, his administration aims to restore credibility in financial governance and position the country for growth.
The coming months will test whether this fiscal strategy can hold, but for now, the government is presenting debt reduction as a cornerstone of its economic success story.
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