The Ghanaian government has acknowledged that the ongoing parliamentary impasse has caused a delay in the disbursement of $300 million in World Bank funding.
This funding, part of a broader financial support package from the World Bank, was intended to help stabilize Ghana’s economy, finance critical sectors, and address fiscal deficits. However, the funds remain inaccessible due to the unresolved deadlock in Parliament.
The legislative body has been on an indefinite recess as the two major political parties continue to dispute which side holds the majority of seats.
“We should have passed some legislation to qualify for the $300 million from the World Bank. However, the funds have not been disbursed because the necessary bills have not been passed, and Parliament has not been functioning as it should,” Finance Minister Dr. Mohammed Amin Adam explained during his monthly economic update on Tuesday.
The Minister expressed confidence that the parliamentary impasse would soon be resolved, allowing the government to access the funds without significant delay.
He also reiterated the government’s readiness to present the mini-budget despite the ongoing standoff, although he is awaiting a resolution of the deadlock to confirm a date for the budget reading. Dr. Adam emphasized that the government remains focused on delivering its policy priorities for sustained economic growth.
“The budget has been presented to Parliament. We are waiting for Parliament’s own time. If this Parliament doesn’t pass it, the next Parliament will approve it. Certainly, when Parliament is not functioning, it affects government operations,” he said.
There are growing concerns that the parliamentary standoff could lead to a potential government shutdown next year, with the possibility of delayed payments to public sector workers.
The Finance Minister admitted that the situation has had a negative impact on the economy but expressed hope for a quick resolution to ensure the timely delivery of the budget and the smooth implementation of government policies.
“To say that the economy has not been affected would be an understatement,” Dr. Amin Adam acknowledged.
Parliament is expected to reconvene from its indefinite break on December 16, 2024.
