John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has made a strong commitment to reform Ghana’s debt management system if given the mandate to lead the nation again. In a recent address during his campaign stop in Dodowa, located in the Shai-Osudoku constituency, Mahama laid out plans to amend the Public Financial Management Act.
His proposed reforms aim to set a limit on how much the country can borrow from external creditors while ensuring greater transparency in debt management.
According to Mahama, the current state of debt management in Ghana lacks transparency, with Ghanaians being informed about the country’s debt levels only when the Minister of Finance presents the budget. The former president expressed concern over the unchecked borrowing that has burdened the nation and future generations. He pointed out that this borrowing spree, with little oversight or reporting, has worsened the country’s financial health.
“There is no transparency in our debt management. The only time we hear how much we owe as Ghanaians is when the Minister of Finance is reading the budget and tells us what our debt-to-GDP is. NDC is going to change that,” Mahama declared during his address to supporters.
He emphasized that the next NDC government would ensure that Ghanaians have regular and timely information about the country’s financial position. To this end, Mahama announced plans to restructure the debt management department of the Ministry of Finance. His proposal involves transforming this department into an independent, autonomous body that will operate as a Debt Management Authority. This new entity, according to Mahama, will be headed by an independent leader who will be tasked with publishing the country’s debt-to-GDP ratio every quarter, ensuring that citizens are kept up to date on the state of the nation’s debt.
By making the Debt Management Authority autonomous, Mahama believes this body will be free from political influence, allowing for objective, transparent reporting. The quarterly updates on Ghana’s debt status would prevent the sort of financial mismanagement that has plagued the country in the past, ensuring that the public has access to clear, accurate information on the government’s borrowing activities.
Mahama also revealed that part of his proposed reforms would include changes to the Public Financial Management Act itself. These amendments would place clear limits on the amount of money any future Finance Minister can borrow. Specifically, he proposed that a cap be placed on borrowing, limiting it to a percentage of the country’s gross domestic product (GDP).
“If we agree that we should not borrow more than 60% of GDP, then we will put it in the Public Financial Management Act so that no Finance Minister can come in future and borrow money as badly as he wants and leave a debt for the young people who are sitting here,” he stated.
The move to limit borrowing is aimed at preventing future administrations from amassing unsustainable levels of debt, which would have long-term negative consequences for Ghana’s economy. Mahama’s proposal would institutionalize these limits, ensuring that any breach of the borrowing cap would be a violation of the law.
The need for such reforms, according to Mahama, is urgent. He stressed that Ghana’s current debt situation is unsustainable, and without significant changes, the country will continue to face economic challenges. By instituting a cap on borrowing and making the debt management process more transparent, Mahama believes his government will be able to restore fiscal discipline and rebuild trust in the country’s financial system.
This is not the first time Mahama has addressed issues related to debt and economic management. Throughout his political career, he has been vocal about the need for better fiscal policies and has often criticized the current administration for its handling of the nation’s finances. His campaign promises to tackle debt management head-on have resonated with many Ghanaians who are frustrated with the current economic challenges the country is facing.
As Mahama continues his Greater Accra regional campaign, his message of fiscal responsibility and transparency in debt management has become a central theme. His pledge to reform the Public Financial Management Act and establish an autonomous Debt Management Authority signals a strong commitment to improving Ghana’s financial health.
Mahama’s supporters view his proposals as a necessary step towards addressing the country’s mounting debt crisis, while critics argue that such reforms will require significant political will and cooperation from multiple stakeholders. Regardless of these differing opinions, Mahama’s message is clear: under his leadership, Ghana’s debt management will be reformed, and the country will chart a new path towards fiscal sustainability.
In the weeks ahead, it is likely that Mahama will continue to push for these reforms as part of his broader economic agenda. His campaign, built around promises of transparency, accountability, and fiscal responsibility, aims to position the NDC as the party capable of steering Ghana out of its current financial challenges and towards a more stable future.
