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Civic technology organisation BudgIT Ghana has urged the government to strengthen domestic revenue mobilisation and reduce reliance on borrowing as the nation’s public debt continues to climb.
The call comes after the Bank of Ghana’s latest Summary of Economic and Financial Data revealed that Ghana’s total public debt rose to GH¢674.1 billion in February 2026, equivalent to about 42.2 percent of GDP.
Speaking to Citi Business News during a workshop analysing the 2026 Budget, BudgIT Ghana Senior Research Officer Hamid Abdel-Mumuni warned that continued borrowing could exacerbate the country’s debt burden and threaten long-term fiscal sustainability.
“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.
Mr. Abdel-Mumuni highlighted that the 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 aggressively pursued.
“With a budget deficit of about GH¢34 billion, the government is considering domestic borrowing of GH¢71 billion to cover it. This will increase our total debt stock, leaving little impact on the overall situation and potentially creating long-term problems,” he explained.
He emphasised the need for improved tax administration, better revenue collection, and broader domestic resource mobilisation to reduce dependence on both domestic and external borrowing.
Additionally, BudgIT Ghana recommended the creation of a dedicated budget line for the government’s proposed 24-hour economy programme. The organisation believes a stand-alone budget framework would enhance transparency, accountability, and effective monitoring of the initiative.
“The 24-hour economy programme is one of government’s flagship initiatives with significant potential. But to fully realise its benefits, implementation must be tracked and accountability ensured,” Mr. Abdel-Mumuni said.
“Without a stand-alone budget, there are no clear details on funding sources or itemised allocations for the various hubs responsible for implementing the programme,” he added.
Story by Efua Nessa
Source: Loco tv