The government has acknowledged that an ongoing parliamentary deadlock is preventing the disbursement of US$300 million in World Bank funding, vital for stabilising Ghana’s economy and addressing fiscal deficits.
The funds, part of a larger financial support package from the World Bank, remain inaccessible due to the unresolved impasse in Parliament, which has been in indefinite recess as the two main political parties dispute control of the majority of seats.
“We should have passed some legislation that would have qualified us for US$300 million from the World Bank. However, the World Bank has not disbursed the money because those bills have not been passed, as Parliament has not been functioning as it should,” Finance Minister Dr. Mohammed Amin Adam said during his monthly economic update, last week.
The Finance Minister expressed optimism that the impasse would soon be resolved, allowing Ghana to access the crucial funds without significant delays. He also reassured the public that the government remains committed to delivering its policy priorities, despite the political gridlock.
“We are focused on delivering our policy priorities for sustained economic growth. The budget has been presented to Parliament. We are waiting for Parliament’s own time. If this current Parliament doesn’t pass it, the next Parliament will approve it,” the Minister said.
He emphasised that: “Certainly, if Parliament is not functioning, it affects the government.”
Concerns have arisen that the parliamentary deadlock could lead to a potential government shutdown next year, particularly impacting the payment of salaries for public sector workers.
However, the Finance Minister remains hopeful that a swift resolution will allow the government to present the mini-budget and avoid such setbacks.
“To say that the economy has not been affected would be an understatement,” Dr. Adam admitted, acknowledging the far-reaching consequences of the parliamentary stalemate.
Parliament is expected to reconvene on Monday, 16 December 2024, which may pave the way for the resolution of the deadlock and the release of the crucial financial support for the country.
