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Ghana's entire budget to be spent on servicing GHC180bn debt in 2026
Ghana's entire budget to be spent on servicing GHC180bn debt in 2026
By: Nii Ammui Fio | 2 mins read
Ghana faces a daunting economic challenge in 2026 as nearly all of its projected budget, estimated at over GHC200 billion, is expected to be consumed by debt servicing obligations amounting to GHC180 billion, according to Felix Kwakye Ofosu, Spokesperson for President John Dramani Mahama and Minister-designate for Government Communications.
Speaking on TV3’s The KeyPoints on Saturday, Kwakye Ofosu highlighted the dire fiscal implications of the country’s debt situation, attributing the crisis to reckless borrowing and defaults under the previous administration.
“At the end of February [2025], we are required to pay GHC6.1 billion in debt servicing,” he revealed, adding, “Next year [2026], we have to pay GHC180 billion in debt servicing. This is for a country whose budget is slightly above GHC200 billion.”
Kwakye Ofosu lamented the severe strain this will impose on the nation’s resources. “What it means is that all the taxes you and I pay, everything else we do in this country that goes into our budget, all of it would be used to pay debt servicing because of the debt default and deferment,” he stressed.
He cautioned that failure to meet these obligations could lead to catastrophic consequences. “If we don't do it, we will default, and it will be catastrophic. It will be the end of our economy as we know it,” he warned.
The spokesperson also criticized the previous government’s borrowing habits, asserting, “The previous government was too happy to borrow but didn’t have the capacity to pay.”
Amid these fiscal challenges, President John Dramani Mahama has charged the newly sworn-in Minister of Finance, Dr. Cassiel Ato Forson, with addressing the crisis head-on. During a ceremony at the Jubilee House, the president outlined key economic priorities, including reducing inflation, stabilizing the cedi, and bringing the country’s debt to sustainable levels.
“The people of Ghana are looking up to you to reduce inflation, make life affordable, reduce the cost of living,” President Mahama said. “Ghanaians are looking up to you to bring our national debt to sustainable levels and to stabilize our currency so that we can achieve macroeconomic stability.”
The president also emphasized the importance of restoring public confidence in government finances through prudent policies and strategic planning. “The challenges are immense, but with the right policies, we can chart a course towards recovery,” he remarked.
As Ghana navigates its fiscal crisis, the focus remains on finding sustainable solutions to avoid default and ensure economic stability in the years ahead.
