If elected president, presidential candidate John Dramani Mahama has pledged to reform Ghana’s debt management policies by enacting laws to cap borrowing relative to the country’s Gross Domestic Product (GDP).
In a campaign rally held in Dodowa, Greater Accra Region, Mahama proposed amendments to the Public Financial Management Act to impose a borrowing ceiling based on GDP percentages.
“We will introduce a clause in the Public Financial Management Act to limit how much a Finance Minister can borrow. For example, if we agree that borrowing should not exceed 60% of GDP, this will be legally enforced,” Mahama stated.
He emphasized the need for transparency in managing Ghana’s public debt and promised to establish clearer oversight mechanisms. “No future Finance Minister will have the leeway to borrow excessively and leave a heavy debt burden for the next generation,” he assured.
Ghana’s mounting public debt has long been a contentious political topic. The New Patriotic Party (NPP), which criticized the previous National Democratic Congress (NDC) administration for excessive borrowing, has overseen a significant increase in the country’s debt since taking office in 2016.
Mahama’s proposals come amidst ongoing debates about Ghana’s reliance on debt to sustain its economy, given challenges with low production and inadequate tax revenue.
