The impact of the suspension of parliament continues to bite hard on Ghana’s economy as the impasse has caused the country to miss $300 million from the World Bank.
The Minister of Finance, Dr. Mohammed Amin Adam made this revelation at a press briefing on Tuesday dubbed “Monthly Economic Update.”
The World Bank has failed to disburse the funds due to legislative approvals which require parliament to enact some bills before accessing these funds.
However, due to the deadlock in parliament over which side constitute the majority, the house has not approved those bills depriving the economy of crucial resources to support the economy.
“To say that the economy has not been affected by the impasse is to treat it mildly. It has,” Dr. Mohammed Amin Adam admitted.
The $300 million in question was part of the World Bank’s financial Assistance programme which is tied to the passage of critical legislation by Ghana’s Parliament.
The delay in securing the World Bank funding comes at a time when Ghana is grappling with fiscal pressures, including high debt servicing costs and revenue mobilization challenges. The suspension of parliamentary activities has not only blocked access to external funding but also stalled other critical legislative actions necessary for advancing government programs.
“We should have passed certain legislation that would have qualified us to receive 300 million dollars from the World Bank. The World Bank has not disbursed the money because those bills have not been passed into law because Parliament is not working as it should. So this is just one example of how the impasse in Parliament has affected the management of the economy,” the Minister for Finance confessed.
Despite these setbacks, the Finance Minister assured Ghanaians that the government remains committed to its fiscal objectives, emphasizing that efforts are being made to maintain economic stability.
“In spite of that, we have stayed the course. The economy is strong. We are within the budget and will make sure that we achieve the fiscal objectives for the year,” he stated.
As indicated in the Minister’s remarks the $300 Million World Bank is just one impact of the deadlock in parliament. Already, the expenditure for the first quarter of 2025 has not been approved which risks the salaries of public sector workers. Other bills have also been stalled bringing some of government businesses to their knees.
