Civic technology organisation, BudgIT Ghana is asking government to intensify domestic revenue mobilisation efforts and reduce its dependence on borrowing as Ghana’s public debt stock continues to rise.
It follows the latest Summary of Economic and Financial Data released by the Bank of Ghana, which showed that Ghana’s total public debt increased to GH¢674.1 billion in February 2026, equivalent to about 42.2 percent of GDP.
Speaking to Citi Business News during a workshop organised to unpack the 2026 Budget, Senior Research Officer at BudgIT Ghana, Hamid Abdel-Mumuni, cautioned that continued borrowing could worsen the country’s debt burden and weaken long-term fiscal sustainability.
According to him, government’s plan to finance part of the budget deficit through domestic borrowing could place additional pressure on the economy if stronger revenue measures are not pursued aggressively.
“Government needs to cut down on borrowing, both domestic and external. Currently, our debt stock is sitting around GH¢641 billion and this is a major issue,” he said.
He noted that although Ghana’s debt-to-GDP ratio has improved, rising debt levels remain a major concern and require prudent fiscal management.
“We have a budget deficit of about GH¢34 billion, and government is looking to cover this deficit by engaging in domestic borrowing to the tune of GH¢71 billion. This will represent additional debt to the country,” he explained.
“That will mean our total debt stock is just going to rise and there wouldn’t be much difference. This will spell a problem for the country if government continues on that path.”
Mr. Abdel-Mumuni therefore called for stronger tax administration, improved revenue collection and broader domestic resource mobilisation to reduce dependence on both domestic and external borrowing.
Meanwhile, BudgIT Ghana is also proposing a dedicated budget line for government’s proposed 24-hour economy programme to improve transparency, accountability and effective monitoring of the initiative.
The organisation believes a stand-alone budget framework would provide clearer details on funding sources, sector allocations and implementation priorities under the flagship programme.
“The 24-hour economy initiative is one of government’s flagship programmes and it has a lot of promise. But in order for the benefits to be realised, we need to track implementation and ensure accountability.”
“Without a stand-alone budget, there are no clear details on where government is going to get the money to finance the initiative, and there are also no itemised allocations for the various hubs that will implement the programme,” he added.
