President John Dramani Mahama has disclosed that his administration has reduced borrowing rates during his second term in office.

He said the government has instead tightened expenditure controls as part of efforts to restore Ghana’s economy.

Speaking on the floor of Parliament during the 2026 State of the Nation Address on February 27, 2026, President Mahama noted that a more structured and disciplined fiscal approach has been adopted.

“We have borrowed less and spent more responsibly,” he stated.

2026 Budget: Public debt drops from GH¢726.7 billion to GH¢630.2 billion - Ato Forson

Ghana’s total public debt at the beginning of 2025 stood at GH¢684.6 billion, representing about 48.9 percent of Gross Domestic Product (GDP), following a marked contraction in the debt stock driven by fiscal reforms, moderated borrowing, and improved cash management.

External debt levels declined significantly over the period, while domestic debt remained largely contained amid stricter control over local market issuances.

According to the President, Ghana’s debt-to-GDP ratio also fell from about 61.8 percent in late 2024 to an estimated 45.3 percent by the end of 2025, underscoring what he described as renewed fiscal discipline during his administration’s first year in office.

“Mr. Speaker, this is one of the sharpest reductions in debt in Ghana’s history. Mr. Speaker, earlier this year, on January 2, while many were still recovering from the New Year celebrations, we settled a US$709 million Eurobond ahead of schedule, completing US$1.4 billion in debt service that was scheduled for 2025,” he added.

SP/MA

LIVESTREAMING: President Mahama presents 2026 State of the Nation Address