GHANA’S parliament may fail to pass a provisional budget before the December 7 general election, risking an unprecedented government shutdown in 2024, according to experts and former officials. This would be the first time in over 30 years that the West African nation has entered the new year without a budget in place, potentially causing major disruptions to government services and spending.
With President Nana Akufo-Addo’s two-term mandate set to end in January, Ghana faces an electoral transition. In past election years, a provisional budget has been approved in November to cover the period between elections and the new president taking office. However, due to an ongoing deadlock between the two main political parties, Ghana’s parliament has been on an indefinite break since October 23, making the passing of the budget increasingly uncertain.
Potential financial strain
Seth Terkper, former finance minister from 2013 to 2017, warned of severe consequences if the budget is not passed. ‘We risk a government shutdown or, at best, limited government spending from January onwards,’ Terkper told Reuters. The country may also have to cut back on interest payments and crucial funding for the presidential transition, creating further economic strain.
The Supreme Court ruled on November 12 that the Speaker of Parliament’s declaration on the balance of power between parties was unconstitutional, which has only added to the political turmoil. Parliament is yet to reconvene, and Speaker Alban Bagbin has declined requests to recall parliament, citing the potential disruption to the ongoing election campaign.
Economic uncertainty and labour concerns
The delay is also raising concerns among Ghana’s labour unions, who fear the financial impact on workers. ‘It’s a big problem,’ said Joshua Ansah, head of the Trades Union Congress. ‘We hope they resolve it before January so it doesn’t affect salaries.’ Without a provisional budget, government salaries and essential services could be delayed, affecting millions of citizens.
The Finance Ministry had initially set a deadline of November 15 to present the provisional budget, but with parliament still in limbo, Ghana now faces a critical few weeks to resolve the budget impasse.
