In the 2026 State of the Nation Address delivered on February 27, 2026, President John Dramani Mahama stated that his administration has made significant strides in reducing government borrowing and enforcing stricter fiscal discipline in public expenditure.
He claimed that the government’s approach is grounded in prudent economic management aimed at stabilising the economy and restoring confidence in Ghana’s financial systems.
“We have borrowed less and spent more responsibly,” President Mahama said, stressing that this represents a shift towards cutting unnecessary expenditure and ensuring value for money in the use of public resources.
According to available data, the total public debt at the start of 2025 stood at approximately GH¢684.6 billion, representing 48.9% of GDP, following a substantial reduction in the overall debt stock attributed to fiscal reforms, stringent borrowing measures, and enhanced cash management.
Notably, external debt has decreased significantly, while domestic debt has remained relatively stable due to tighter control over local financing.
