Key Points
- Ghana’s ₵68.1 billion budget prevents a government shutdown.
- One-third of the budget is allocated to the energy sector.
- Mahama’s presidency begins as Ghana recovers from economic crisis.
Parliamentary Speaker Alban Bagbin said that the Ghanaian parliament just avoided a government shutdown by passing a provisional budget of 68.1 billion Ghanaian cedis ($4.65 billion) late Thursday.
Ghana parliament approves provisional budget, preventing shutdown
Following lengthy discussions during a political standoff over whether the incoming National Democratic Congress (NDC) or the departing New Patriotic Party (NPP) has a majority in parliament, the clearance was granted. In order to fill the void until president-elect John Dramani Mahama takes office the next week, the budget will enable the government to continue operating through March.
After a heated meeting that continued late into Thursday night, the interim budget was approved. Lawmakers were reassured by Finance Minister Mohammed Amin Adam that government operations would not be disrupted by the delayed passage.
According to former Finance Minister Seth Terkper, the action lessens the effects of Ghana’s continuing debt default problem and averts a government shutdown. Payments to service providers in the energy sector account for over one-third of the budget.
Mahama returns amid challenges after December election victory
Mahama, who was Ghana’s president from 2012 to 2016, will become president-elect after winning the election on December 7. Following Ghana’s greatest financial crisis in a generation, he is taking office again during an economic rebound.
According to Reuters, Mahama warned of ongoing power supply interruptions and estimated arrears of over $2.5 billion last month, highlighting the nation’s serious energy-sector issues.
On Friday, outgoing President Nana Akufo-Addo, who has presided over the country that exports oil and gold for the previous eight years, will give his farewell state of the nation address.
In election years, a provisional budget is often passed in November; however, this time, the delay highlighted the political unrest in Ghana’s parliament.
