It seems unlikely that Ghana’s Parliament will pass the interim budget before the general elections on December 7.
Former officials and experts say it is unlikely that Ghana’s Parliament will pass an interim budget before the December 7 general elections, warning that this could lead to an unprecedented government shutdown early next year.
The West African country is preparing to elect a successor to President Nana Akufo-Addo, whose two-term presidency ends in January.
Typically, in election years, a temporary budget is passed in November to cover the gap until the newly elected president takes office.
Seth Terkper, who served as Finance Minister from 2013 to 2017, stated in an interview, “We face the risk of a government shutdown, or at best, a reduction in public spending starting in January.”
Reducing Interest Payments
He added that without a budget in December, the government may have to reduce interest payments and transitional financing.
Failure to pass the budget would be a first for Ghana in 30 years, the world’s second-largest cocoa producer.
The Ghanaian Parliament has been on an indefinite recess since October 23 due to a deadlock over which of the two main parties holds the majority of seats.
The Supreme Court ruled on November 12 that a statement by Parliament Speaker Alban Bagbin was unconstitutional.
“This Has Never Happened Before”
Bagbin rejected calls to reconvene Parliament, citing concerns that it would disrupt the election campaign.
Patrick Yaw Boamah, Chairman of the Parliamentary Finance Committee, told Reuters, “This has never happened before.”
The Ministry of Finance did not respond to requests for comment. Finance Minister Mohammed Amin Adam had set November 15 as the deadline for presenting the interim budget.
Parliament has a few weeks to pass the interim budget to avoid cuts and a potential shutdown.
“A Major Issue”
Labor unions in Ghana are hoping that Parliament will work on a solution before the issue affects workers.
Joshua Ansah, President of the Trade Union Congress, told Reuters, “This is a big issue… We hope it will be resolved before January so that salaries are not affected.”
