BudgIT Ghana is calling on the government to strengthen domestic revenue mobilisation efforts and reduce reliance on borrowing as Ghana’s public debt stock continues to increase.
The call follows the latest economic and financial data released by the Bank of Ghana, which showed that Ghana’s total public debt rose to GH¢674.1 billion in February 2026, representing approximately 42.2 percent of Gross Domestic Product (GDP).
Speaking during a workshop organised to examine the 2026 Budget, Senior Research Officer at BudgIT Ghana, Hamid Abdel-Mumuni, warned that continued borrowing could further increase the country’s debt burden and create long-term fiscal challenges.
According to him, government plans to finance part of the budget deficit through domestic borrowing could place additional strain on the economy if stronger revenue-generating measures are not pursued.
He explained that while Ghana’s debt-to-GDP ratio may have shown some improvement, the overall level of public debt remains a significant concern that requires careful fiscal management.
Abdel-Mumuni also noted that financing budget deficits through additional borrowing could further increase the country’s debt stock, potentially limiting efforts aimed at improving economic stability and sustainability.
He therefore called for stronger tax administration systems, improved revenue collection mechanisms, and broader domestic resource mobilisation efforts to reduce dependence on both domestic and external borrowing.
Meanwhile, BudgIT Ghana is also advocating for a dedicated budget allocation for the government’s proposed 24-hour economy programme to improve transparency, accountability, and effective monitoring of the initiative.
The organisation believes that a stand-alone budget framework would provide greater clarity regarding funding sources, sector allocations, and implementation priorities under the programme.
According to BudgIT Ghana, establishing a separate budget structure would also make it easier to track spending and evaluate progress to ensure the initiative achieves its intended objectives.
