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Ghana’s public debt has fallen significantly, marking one of the steepest declines in the nation’s recent history, according to the Minister for Finance. Presenting the 2026 Budget Statement to Parliament on Thursday, November 13, the Minister revealed that the country’s total public debt had dropped by nearly GHS100 billion within a year.
According to the budget presentation, Ghana’s debt stock decreased from GHS726.7 billion, representing 61.8 percent of GDP in 2024, to GHS630.2 billion, equivalent to 45 percent of GDP by October 2025.
“For the first time in over a decade, we have recorded a negative rate in debt accumulation — from a positive 19.1 percent in 2024 to a negative 13.3 percent in 2025,” the Minister announced, describing the development as a historic fiscal achievement.
Fiscal Discipline and Stronger Cedi Credited for Decline
The Finance Minister attributed the sharp reduction in the debt-to-GDP ratio to a combination of fiscal discipline, cautious borrowing practices, and a stronger cedi, all of which he said have helped stabilise the country’s financial position.
He emphasised that the government’s current fiscal trajectory reflects deliberate efforts to reduce reliance on borrowing, improve revenue management, and implement reforms aimed at strengthening macroeconomic stability.
“This turnaround is not accidental,” he stated. “It is the result of prudent borrowing decisions, reforms in public financial management, and the renewed confidence in the Ghanaian economy.”
Debt Now on “Firm Downward Path”
The Minister assured Parliament that Ghana’s public debt is now on a “firm downward path,” noting that the negative debt accumulation rate signals a reversal of years of rapid debt growth.
He added that the government remains committed to maintaining the momentum by sustaining fiscal consolidation measures and ensuring that future borrowing is tied strictly to productive, growth-enhancing investments.
The significant drop in the debt ratio is expected to boost investor confidence, improve Ghana’s creditworthiness, and strengthen the country’s standing in ongoing fiscal and economic reforms.
