We have borrowed less and spent more responsibly – Mahama

President John Dramani Mahama has reaffirmed his administration’s commitment to fiscal discipline, telling Parliament that government borrowing has been significantly reduced alongside stricter control of public spending.

Presenting the 2026 State of the Nation Address on Friday, 27 February, the President said his government has adopted a cautious and responsible economic strategy focused on stabilising the economy and restoring confidence in Ghana’s public finances.

“We have borrowed less and spent more responsibly,” he stated, stressing that the administration has moved away from excessive expenditure and is prioritising efficiency and accountability in the use of state resources.

The President explained that efforts to streamline spending, strengthen revenue mobilisation and improve cash management have contributed to the improved fiscal outlook. He noted that government is committed to ensuring that limited resources are directed toward critical sectors such as infrastructure, healthcare, education and social protection.

Ghana’s debt situation has remained a major topic of national concern 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 decline in the country’s debt stock as a result of fiscal reforms and tighter borrowing controls.

External debt levels have dropped considerably, while domestic debt has remained relatively steady under enhanced monitoring of local financing.

According to figures cited in the address, the debt-to-GDP ratio declined from about 61.8 percent in late 2024 to roughly 45.3 percent by the close of 2025 — a development the government describes as evidence of improved fiscal discipline.

As lawmakers deliberate on the President’s address, discussions are expected to centre on the sustainability of these gains and the broader implications for economic growth and long-term financial stability.