SONA 2026: We have cut borrowing and improved spending efficiency – President Mahama

President John Dramani Mahama has told Parliament that his administration has curtailed government borrowing and enforced stricter fiscal discipline in public spending.

Delivering the 2026 State of the Nation Address on Friday, 27 February, President Mahama said the government’s approach is grounded in prudent economic management aimed at stabilising the economy and restoring confidence in Ghana’s public finances.

“We have borrowed less and spent more responsibly,” he said, noting a focus on reducing unnecessary expenditure and ensuring value for money in the use of public resources.

The President’s remarks were part of a broader review of the economy, outlining measures to strengthen fiscal management while supporting growth and social development.

Ghana’s public debt has been a key concern in recent years. At the start of 2025, total public debt stood at approximately GH¢684.6 billion (about 48.9 % of GDP), reflecting a decline in overall debt following fiscal reforms, tighter borrowing, and improved cash management. External debt has fallen significantly, while domestic debt has remained relatively stable under tighter control of local financing.

Under President Mahama’s first year back in office, the debt‑to‑GDP ratio dropped from around 61.8 % in late 2024 to about 45.3 % by the end of 2025, signalling a move toward more disciplined fiscal policy.

As Parliament considers the address, the differing debt trajectories under successive administrations are expected to remain central to discussions on economic management, fiscal sustainability, and strategies for future growth.