The Ghanaian government has acknowledged that a prolonged impasse in Parliament has resulted in the delay of a crucial $300 million disbursement from the World Bank. This sum represents a portion of a larger financial aid package designed to bolster Ghana’s economy, provide funding for vital sectors, and address existing fiscal deficits. The funds remain inaccessible due to the ongoing political stalemate within the legislature. Parliament has been in an indefinite recess, a consequence of a dispute between the two dominant political parties regarding the composition of the parliamentary majority and, therefore, control of the legislative process.
During his monthly economic update on Tuesday, Finance Minister Dr. Mohammed Amin Adam explained the situation, stating, “We should have passed some legislations that should have qualified us for $300 million from the World Bank. However, the World Bank has not disbursed the money because those bills have not been passed because parliament has not been working as it should. This is just one example of how the impasse in the house has affected government business.”
Despite the parliamentary gridlock, Dr. Adam expressed optimism regarding a prompt resolution, enabling Ghana to receive the World Bank funds without significant disruption. He also confirmed the government’s readiness to present the mini-budget to Parliament, although a specific date for the budget reading remains pending a resolution of the parliamentary impasse.
He affirmed the government’s commitment to implementing its policy agenda to foster sustained economic growth, stating, “It [budget] has been presented to Parliament. We are waiting for Parliament’s own time. If this current parliament doesn’t pass, the next parliament will approve it. Certainly, if Parliament is not functioning it affects the government.” The current political stalemate raises concerns about a potential government shutdown in the coming year, with a particularly significant impact anticipated on the timely payment of salaries to public sector workers.
Dr. Adam voiced his hope for a swift resolution to the situation, underlining the importance of a timely budget approval and the smooth execution of government policies. He acknowledged the economic effects of the impasse, stating, “To say that the economy has not been affected would be an understatement.” Parliament is scheduled to resume its sessions following its indefinite recess on December 16, 2024.
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