Ghana’s parliament has narrowly passed a provisional budget of 68.1 billion Ghanaian cedis ($4.65 billion) to fund government operations through March, averting a potential government shutdown.
Parliamentary Speaker Alban Bagbin confirmed the budget’s approval during a late-night session on Thursday. The move comes as Ghana prepares for a leadership transition, with President-elect John Dramani Mahama set to assume office next week following his victory in the December 7 election. Mahama, who previously served as president from 2012 to 2016, is making a political comeback.
Outgoing President Nana Akufo-Addo is expected to deliver his final state of the nation address on Friday, marking the end of his eight-year tenure leading the gold- and oil-rich nation.
In election years, provisional budgets are typically passed in November to bridge the gap until the new president takes office. However, this year’s budget approval was delayed by disagreements over which party—Akufo-Addo’s New Patriotic Party (NPP) or Mahama’s National Democratic Congress (NDC)—holds the majority in parliament.
Finance Minister Mohammed Amin Adam assured lawmakers that the delayed approval would not disrupt government operations. Former Finance Minister Seth Terkper emphasized the budget’s importance, noting it prevents a government shutdown and mitigates the risk of exacerbating Ghana’s ongoing debt default crisis.
Approximately one-third of the budget is allocated to payments for energy-sector service providers, a critical area given the nation’s power challenges. Mahama, the president-elect, recently highlighted the dire state of Ghana’s energy sector, estimating arrears of over $2.5 billion and warning of persistent power supply issues.
Mahama returns to leadership amid signs of economic recovery following one of Ghana’s most severe financial crises in decades.
