Ghana’s parliament narrowly averted a historic government shutdown by passing a provisional budget of 68.1 billion Ghanaian cedis ($4.65 billion) to fund operations through March, Parliamentary Speaker Alban Bagbin announced early Friday.
The approval, granted after extended deliberations late Thursday night, provides a financial lifeline as the country transitions to a new administration. President-elect John Dramani Mahama is set to assume office next week after securing a victory in the Dec. 7 election, marking his return to power after leading the nation from 2012 to 2016.
Outgoing President Nana Akufo-Addo is expected to deliver his final state of the nation address later on Friday, concluding eight years of leadership over one of Africa’s leading gold and oil exporters.
The delayed passage of the budget stemmed from a parliamentary deadlock over which party—Akufo-Addo’s New Patriotic Party (NPP) or Mahama’s National Democratic Congress (NDC)—holds a majority. This process is typically concluded in November during election years to bridge the gap until a new administration assumes office.
Finance Minister Mohammed Amin Adam assured legislators that the delay would not disrupt government functions. Former Finance Minister Seth Terkper emphasized the significance of the decision, noting, “It averts a government shutdown and prevents further complications in Ghana’s ongoing debt default saga.”
Nearly a third of the approved funds are allocated to energy-sector payments, a critical issue as Mahama highlighted last month. The president-elect warned that the energy sector faces arrears exceeding $2.5 billion, exacerbating power supply challenges.
Mahama returns to office amid cautious optimism, tasked with steering Ghana out of its most severe economic crisis in a generation and addressing pressing challenges in energy and fiscal management.
