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

Delivering the 2026 State of the Nation Address on Friday, 27 February, the President said the government’s strategy is rooted in prudent economic management to stabilise the economy and rebuild confidence in Ghana’s finances.

“We have borrowed less and spent more responsibly,” President Mahama said, highlighting a shift towards cutting unnecessary expenditure and ensuring value for money in the use of public resources.

His remarks formed part of a broader assessment of the economy and the government’s plan to strengthen fiscal management while supporting growth and social development.

Ghana’s public debt profile has been a central issue in recent years.

At the start of 2025, total public debt stood at about GH¢684.6 billion (roughly 48.9 % of GDP) after a significant decline in overall debt stock driven by fiscal reforms, tighter borrowing and stronger cash management. External debt has fallen notably, while domestic debt has remained relatively stable as part of tighter control of local financing.

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

As Parliament digests the President’s address, the contrasting debt trajectories under successive governments will remain at the heart of debates about economic management, fiscal sustainability and the road to growth.