John Dramani Mahama, the National Democratic Congress (NDC) flagbearer, has vowed to limit Ghana’s borrowing and boost debt transparency if elected. He plans to amend the Public Financial Management Act to impose stricter limits on external borrowing.

Speaking in Dodowa, Shai-Osudoku constituency, during his Greater Accra regional campaign tour, Mahama emphasized the need for fiscal discipline. He criticized the current lack of transparency in debt management, contributing to unsustainable borrowing practices.

Proposed Reforms:

1. Autonomous Debt Management Authority: Make the debt management department of the Finance Ministry independent, responsible for quarterly publication of Ghana’s debt-to-GDP ratio.
2. Borrowing Cap: Amend the Public Financial Management Act to set a cap on external borrowing, ensuring fiscal responsibility.
3. Stricter Borrowing Limits: Limit the finance minister’s borrowing power to prevent excessive debt accumulation.

Mahama reiterated his commitment to restoring discipline in public financial management, prioritizing prudent borrowing, and providing regular updates on Ghana’s financial health. He stressed that enhanced debt transparency is crucial for restoring investor confidence and ensuring long-term economic stability.

Ghana’s public debt reached 92.7% of GDP in 2022, prompting IMF support through a 36-month Extended Credit Facility Arrangement. Mahama’s proposals aim to ensure sustainable economic growth and stability.

By supporting Mahama’s vision, Ghanaians can expect a more accountable and transparent government handling public finances. “There is no transparency in our debt management… NDC is going to change that,” Mahama assured.