The outgoing government in Ghana may face significant payment delays in the first week of 2025 due to its failure to present a mini budget for the first quarter of the year. Finance Minister Dr. Mohammed Amin Adam was expected to present the budget before Parliament adjourned on Friday, December 20, but despite assurances, he did not attend, leading to a potential government shutdown unless Parliament is recalled at the end of the year.
In election years, a mini budget is typically presented and approved in November to authorize government spending for the following year. However, due to a parliamentary impasse over the composition of the majority, this process was not completed as expected. The ruling government, which lost the recent elections by a significant margin, has not been pleased with the refusal of the current minority, which will take full control of Parliament in 2025, to approve tax waivers. This non-presentation of the mini budget is seen as a retaliatory action.
As a result, the incumbent government may not have approval to spend any funds during the first seven days of 2025, potentially affecting government operations until the new administration takes over on January 7, 2025. However, the incoming government has a plan. The incoming Vice President and the first lady to become a Vice President in Ghana, Prof. Jane Naana Opoku-Agyemang, after their swearing-in, is expected to present a mini budget to ensure smooth government operations after assuming office.
This marks the first time in Ghana’s history that a government shutdown is anticipated as a result of a hung parliament. With the opposition National Democratic Congress controlling nearly two-thirds of Parliament, such deadlocks are expected to become less frequent.
Despite the situation, labour unions are not overly concerned. Dr. Kwabena Nyarko Otu, Deputy General Secretary of the Ghana Trade Union Congress, expressed confidence that the incoming government would be able to present the mini budget in time to maintain the continuity of government business.
There are also discussions about the possibility of Parliament being recalled before the year’s end to approve the mini budget.
