GHANA’S parliament has narrowly passed a provisional budget worth 68.1 billion cedis ($4.65bn), ensuring the government remains operational as President-elect John Dramani Mahama prepares to take office next week.
The approval, announced by Parliamentary Speaker Alban Bagbin, came after an intense debate that stretched deep into Thursday night.
This last-minute decision prevents an unprecedented government shutdown and stabilises operations ahead of the transition from outgoing President Nana Akufo-Addo to Mahama, who won the December 7 election, marking a political comeback after his previous tenure from 2012 to 2016.
Budget delay sparks political tensions
Typically, a provisional budget is passed in November during election years to cover government expenses until the new administration assumes power. However, this year’s approval faced delays due to a dispute over parliamentary majority between Akufo-Addo’s New Patriotic Party (NPP) and Mahama’s incoming National Democratic Congress (NDC).
Despite the delay, Finance Minister Mohammed Amin Adam reassured lawmakers that government operations would remain unaffected. Former Finance Minister Seth Terkper also emphasised the significance of the approval, telling Reuters: ‘It averts a government shutdown and the likelihood of worsening Ghana’s ongoing debt default saga.’
Energy crisis looms as Mahama takes office
A significant portion of the budget—almost a third—is earmarked for payments to energy-sector service providers. Mahama previously warned that Ghana’s energy sector was in crisis, revealing that outstanding debts had surpassed $2.5bn, while power supply remained unstable.
As Ghana emerges from its worst economic downturn in decades, Mahama’s administration faces an uphill battle to stabilise finances, improve energy reliability, and rebuild investor confidence.
With the emergency budget now in place, all eyes are on Mahama’s incoming government and its plans to navigate the nation’s economic and energy challenges.
