Ghana is on the brink of a potential government shutdown due to a parliamentary deadlock over the passage of the provisional budget for 2025. The impasse comes as the country prepares for its December 7 general elections and the transition to a new administration.
Traditionally, a provisional budget is approved in November of election years to ensure government operations continue until the incoming president assumes office on January 7, 2025. However, parliament has been stalled since October 23 over a dispute regarding the majority status of the two leading political parties. This standoff was further complicated by a Supreme Court ruling on November 12 that deemed the Speaker’s declaration as unconstitutional.
Former Finance Minister Seth Terkper has warned of severe implications if the budget remains unresolved. He says Ghana risks a government shutdown or, at best, lean government spending from January, noting potential cutbacks on interest payments and transitional funding.
“We risk a government shutdown or at best, reduced government spending from January,” Tekper is quoted by Reuters to have said.
The Finance Ministry had set November 15 as the deadline for presenting the provisional budget, but this timeline has passed without progress. Parliament now has only weeks to finalize the budget to avert fiscal disruptions.
Chairman of Parliament’s Finance Committee, Patrick Yaw Boamah, expressed concerns over the unprecedented situation. Stating that this situation is a first of its kind as the country’s swing parliament is a new development in Ghana’s politics.
Labour unions have also raised alarms, emphasizing the risk to public sector salaries and services. They are hopeful that the issues will be resolved before January so it doesn’t affect government workers’ salaries.
The deadlock, if unresolved, would mark the first government shutdown in Ghana’s history and could undermine investor confidence in the nation’s governance systems. With only a short window left before year-end, stakeholders are urging swift parliamentary action to avoid a national fiscal crisis.
