In a landmark national address on Wednesday, President John Dramani Mahama outlined the progress made under his administration’s 120-Day Social Contract with Ghanaians, highlighting key fiscal reforms, pro-business policies, and social interventions that mark a decisive shift toward macro-economic stability and growth.
Speaking at the Jubilee House before a mixed audience of policy makers, business leaders, and civil society representatives, the President declared that his Social Contract with Ghanaians is a commitment to “deliver results, restore credibility, and stimulate inclusive prosperity.”
Fiscal Policy Overhaul
One of the President’s headline achievements was the swift amendment to the Public Financial Management Act (PFMA), 2016 (Act 921). The revised legislation introduces a fiscal responsibility framework aimed at reducing Ghana’s debt-to-GDP ratio to 45% by 2034.
“We’ve also established an operational rule to post an annual primary surplus of at least 1.5% of GDP on a commitment basis”. Prez Mahama declared.
What sets the reform apart is the legal accountability now baked into fiscal governance.
” What is also new about this law is the sanctions associated with breaches of the fiscal rules which extend beyond just the Minister for Finance to include all ministers of state and heads of covered entities whose actions or inactions contributes to the fiscal slippages”. He warned.
To ensure credibility and oversight, the administration has established an independent fiscal council to monitor adherence to these new rules. The council is expected to operate with full autonomy and technical rigor, signaling a strong commitment to transparent economic governance.
“The amendment also allows for the establishment of an independent fiscal council to monitor the government’s adherence to the fiscal rules, the reform was executed in April 2025 before the September 2025 deadline under the IMF supported program” Prez Mahama highlighted.
Auditing the Past to Secure the Future
As part of the cleanup of public finances, President Mahama revealed that the Auditor General, in collaboration with two international auditing firms, has been commissioned to conduct a forensic audit of all government payables and commitments. The objective: to validate the legitimacy of obligations and recommend corrective actions where necessary.
Procurement Reform and Spending Discipline
Another major reform targets the public procurement process. The revised Public Procurement Act now requires a commitment certificate from the Minister for Finance as a prerequisite for all central government-funded procurements. This measure aims to curtail the culture of over-commitment and non-transparent contractual engagements.
A Tax Relief Package for the People
Beyond institutional reforms, the President addressed the immediate economic hardship facing many Ghanaians. Several “draconian” taxes have been scrapped, particularly those that were burdensome to small businesses and the informal sector.
“By eliminating punitive taxes, we are not only easing the cost of living but also stimulating local enterprise and productivity.” He stated.
With several of these measures enacted well ahead of the September 2025 IMF program deadline, Ghana appears poised for a fiscal turnaround. Yet, the true test will be in consistent implementation and the ability to resist political pressures that have historically derailed reform efforts.
If sustained, President Mahama’s 120-Day Social Contract may well go down as the most decisive first-quarter intervention in Ghana’s democratic history, a signal that a new era of economic discipline and social responsibility has begun.
