Ghana’s parliament approved a provisional budget allowing the government to spend 68.1 billion Ghanaian cedis ($4.65 billion) through March, narrowly averting a historic government shutdown, Parliamentary Speaker Alban Bagbin announced late Thursday night.
The budget’s passage ensures the continuation of government operations until John Dramani Mahama takes office next week as Ghana’s new president following his Dec. 7 election victory. Mahama’s win marks a political comeback after his previous tenure as president from 2012 to 2016.
Outgoing President Nana Akufo-Addo is expected to deliver his final state of the nation address Friday, concluding his eight-year leadership of Ghana, a key gold and oil exporter.
Typically passed in November during election years, this year’s provisional budget was delayed by disputes over parliamentary majority control between the outgoing New Patriotic Party (NPP) and the incoming National Democratic Congress (NDC). Finance Minister Mohammed Amin Adam assured lawmakers the delay would not disrupt government activities.
Former Finance Minister Seth Terkper told Reuters the budget’s approval avoids a potential government shutdown and reduces the risk of exacerbating Ghana’s debt default crisis. Nearly one-third of the budget is allocated for payments to energy-sector service providers, underscoring the country’s critical energy challenges.
President-elect Mahama warned last month of severe difficulties in Ghana’s energy sector, with arrears surpassing $2.5 billion amid erratic power supply. As he prepares to assume office, Mahama faces the dual challenge of stabilizing Ghana’s economy and addressing the country’s energy crisis.
Mahama, who returns to power as leader of the main opposition party, is taking office amid tentative signs of economic recovery following Ghana’s worst financial crisis in decades.
Reuters
