Mahama pledges bold economic reforms, cuts government spending

President John Dramani Mahama has pledged bold economic reforms and governance restructuring to restore fiscal discipline and rebuild public trust in his administration.

Delivering his first State of the Nation Address (SONA) on Thursday, February 27, 2025, he called for national sacrifice, vowing to cut government expenditure and eliminate wasteful spending.

Acknowledging the economic crisis inherited from the previous administration, Mahama described Ghana’s financial state as a “crime scene”, attributing it to reckless mismanagement.

He assured citizens that his government would implement stringent measures to stabilise the economy.

“We cannot pretend that all is well. The economy has suffered severe setbacks due to poor management, and the evidence of financial indiscipline is overwhelming,” he stated. “However, we are determined to turn things around. There will be no room for wasteful expenditure.”

President Mahama revealed that the Finance Ministry has been instructed to slash non-essential spending, signalling a shift towards economic prudence.

He commended organised labour for agreeing to a 10% salary adjustment despite economic challenges and urged all Ghanaians to embrace fiscal discipline.

“This is a year of sacrifice, and I commend labour unions for their understanding and commitment. We must all tighten our belts to build the Ghana we want,” he emphasised.

The president assured workers that the government itself would bear the brunt of the austerity measures.

“We are not asking only the citizens to make sacrifices—government machinery will also take significant cuts,” he added.

To reduce administrative costs, President Mahama announced plans to downsize the number of presidential staffers, emphasising the need for a leaner and more effective government.

“We cannot afford an oversized government that drains resources meant for national development,” he said. “A smaller, results-oriented team will ensure efficiency and accountability.”

President Mahama also commended Parliament for its swift approval of his ministerial nominees, describing it as an unprecedented achievement in Ghana’s Fourth Republic.

He urged lawmakers to extend the same urgency to the vetting of deputy ministers to enable full government operations.

“The speed and commitment shown by Parliament in approving my ministers is commendable. I hope we can continue this spirit of cooperation to advance national development,” he stated.