NDC, NPP MPs clash over Ghana’s 44% debt-to-GDP figure ahead of Mid-Year Budget Review
The Majority and Minority caucuses in Parliament have traded arguments over Ghana’s reported decline in its debt-to-GDP ratio to 44 per cent, ahead of Finance Minister Dr Cassiel Ato Forson’s Mid-Year Budget Review scheduled for Thursday.
The latest debt figures have sparked sharp debate, with the Minority cautioning against portraying the decline as a clear sign of economic strength without examining the broader factors behind it.
Minority spokesperson on the economy, Kojo Oppong Nkrumah, argued that the debt-to-GDP ratio alone does not accurately reflect Ghana’s debt sustainability. He said the recent improvement was partly driven by the appreciation of the cedi and warned that any significant depreciation of the currency could quickly reverse the gains.
“We should not rely on cedi appreciation to conclude that the debt stock has fallen. When the cedi appreciated by about 43 per cent in 2025, it created the impression that the debt situation had improved. However, with about an 8 per cent depreciation so far this year, the country’s debt stock has increased by approximately GH¢47 billion,” he told Parliament.
Mr Oppong Nkrumah also urged the government to complete the remaining aspects of the Domestic Debt Exchange Programme (DDEP), stressing that Ghana’s debt should be assessed within a broader debt sustainability framework.
Adding to the debate, Walewale MP Kabiru Tiah-Mahama criticised the government for crediting the debt restructuring programme for recent economic improvements after previously opposing it.
“The same debt exchange programme you condemned has now become the foundation of your macroeconomic stability and the basis for your positive economic assessment,” he said.
The Minority also questioned the government’s revenue performance, claiming revenue targets had not been met and calling on the Finance Minister to address the issue during the Mid-Year Budget Review.
The Majority, however, defended the government’s record, insisting the reduction in the debt-to-GDP ratio reflects sound fiscal management and improving economic conditions.
Deputy Majority Whip Richard Acheampong accused the Minority of refusing to acknowledge positive developments, arguing that the government inherited a debt burden with the ratio exceeding 100 per cent before implementing measures that helped reduce it.
“Our colleagues in the Minority have become prophets of doom. They continue to predict problems that have not occurred, but the figures speak for themselves,” he said.
Mr Acheampong attributed the improvement to tighter fiscal discipline, expenditure controls and reforms introduced by the Finance Ministry to strengthen commitment controls and improve value for money.
He also maintained that the Domestic Debt Exchange Programme played a key role in stabilising the economy and should not be dismissed.
“You cannot say the DDEP achieved nothing. What about the sacrifices made by those who were affected?” he said, referring to the impact of the debt restructuring exercise.
The exchange comes ahead of Dr Ato Forson’s Mid-Year Budget Review, where the government is expected to outline the country’s economic performance, revenue collection, debt management strategy, and projections for the rest of the year.
About The Author
