The Minority and Majority in Parliament have clashed over the reported decline in Ghana’s debt-to-GDP ratio to 44 percent, with the figures becoming a major talking point ahead of Finance Minister Dr. Cassiel Ato Forson’s presentation of the Mid-Year Budget Review on Thursday.
The latest debt figures have triggered a debate between the two sides of the House, with the Minority cautioning government against celebrating the reduction without considering the broader economic realities underpinning the numbers.
Minority Spokesperson on the Economy, Kojo Oppong Nkrumah, argued that the debt-to-GDP ratio alone does not provide a complete picture of Ghana’s debt sustainability.
According to him, the recent improvement has been partly influenced by the appreciation of the cedi and should not be used as the sole basis for assessing the country’s debt position.
He warned that any significant depreciation of the local currency could quickly reverse the gains recorded.
“We don’t have to rely on cedi appreciation as a basis to say our debt stock has reduced. When the cedi appreciated by about 43 percent in 2025, it appeared as though the situation was getting better. But with the about 8 percent depreciation we have seen year to date, our debt stock has gone up by about GH¢47 billion,” Mr Oppong Nkrumah told Parliament.
He also urged government to complete outstanding aspects of the domestic debt restructuring programme, arguing that Ghana’s debt position must be assessed within a wider debt sustainability framework.
The Walewale MP, Kabiru Tiah-Mahama, also questioned attempts by the government to present the debt restructuring programme as a major contributor to current economic gains.
He argued that the same debt exchange programme which the government criticised while in opposition was now being cited as a reason for improved economic indicators.
“The debt that you bastardised is now the cornerstone of your macroeconomic stability. It is the cornerstone of the good thing that you are still using in your analysis,” he said.
The Minority further raised concerns about revenue mobilisation, accusing government of failing to meet revenue targets and calling on the Finance Minister to provide explanations during the Mid-Year Budget Review.
However, the Majority rejected the Minority’s attempt to downplay the latest economic indicators, insisting that the decline in the debt-to-GDP ratio reflects improved fiscal management by the government.
Deputy Majority Whip, Richard Acheampong, accused the Minority of refusing to acknowledge what he described as positive economic developments.
He said the current administration inherited a debt situation where Ghana’s debt-to-GDP ratio had exceeded 100 percent before declining under measures introduced by the government.
“Many of our friends in the Minority are turning into prophets of doom. Things that have not happened are what they are talking about. But the report speaks for itself,” Mr Acheampong said.
He attributed the improvement to fiscal discipline, expenditure controls and reforms introduced by the Finance Ministry, including measures to strengthen commitment controls and ensure value for money.
According to him, the Domestic Debt Exchange Programme also contributed to stabilising the economy and should not be dismissed.
“Don’t say the DDEP that you did is not a positive indicator. What about those who died?” he questioned, referencing the impact of the debt restructuring programme on affected individuals.
The exchange comes as expectations build ahead of Dr Cassiel Ato Forson’s Mid-Year Budget Review, where government is expected to provide an update on the economy, revenue performance, debt management and the outlook for the remainder of the year.
