Ghana’s parliament is unlikely to approve a provisional budget ahead of the December 7 general election, according to former officials and analysts, raising concerns about a potential government shutdown early next year, Reuters reported.
The West African nation is preparing to elect a successor to President Nana Akufo-Addo, whose second term concludes in January. Traditionally, during election years, a provisional budget is passed in November to bridge the financial gap until the new president assumes office.
“We risk a government shutdown or at best, lean government spending from January,” Seth Terkper, former finance minister from 2013-17, said in an interview.
If a budget is not passed by December, the government may be forced to scale back on interest payments and funding for the presidential transition, he noted.
Such a scenario would mark the first time in over 30 years that Ghana, the world’s second-largest cocoa producer, has failed to approve a budget before a general election.
Ghana’s parliament has been on an indefinite break since October 23 due to a stalemate over which of the two major parties holds the majority of seats.
Finance Minister Mohammed Amin Adam had initially set a November 15 deadline to present the provisional budget.
However, with time running out, parliament faces growing pressure to pass the budget and prevent spending cuts or a potential government shutdown.
Labour unions have voiced their concerns, urging lawmakers to resolve the impasse quickly to mitigate any adverse impact on workers and public services.