The government has acknowledged that the ongoing parliamentary impasse is obstructing the disbursement of $300 million in critical World Bank funding for Ghana.
This funding, part of a larger World Bank support package, is intended to stabilize the economy, finance essential sectors, and address fiscal deficits. However, the unresolved standoff in Parliament has delayed access to the funds.
The legislative stalemate stems from a dispute between the two main political parties over which side commands the majority, forcing Parliament into an indefinite recess.
Impact of the Impasse
Finance Minister Dr. Mohammed Amin Adam highlighted the issue during the Finance Ministry’s monthly economic update on Tuesday, December 3, 2024.
“We should have passed some legislations that qualify us for $300 million from the World Bank. However, the World Bank has not disbursed the money because those bills remain unpassed due to Parliament’s dysfunction,” he stated.
Dr. Amin Adam emphasized that the deadlock is impeding not only the disbursement but also broader government operations.
Government’s Readiness
Despite the challenges, the Finance Minister expressed optimism about resolving the impasse soon, enabling the timely receipt of the funds. He confirmed the government’s readiness to present the mini-budget and its commitment to delivering policy priorities for sustained economic growth.
The Minister noted, “The budget has been presented to Parliament. We are waiting for their resolution. If the current Parliament doesn’t pass it, the next Parliament will. But Parliament’s inactivity is undeniably affecting governance.”
Risks of Prolonged Stalemate
There are concerns that the parliamentary standoff could lead to severe disruptions, including a potential government shutdown in 2025. This scenario could impact critical functions like the payment of public sector salaries.
Dr. Amin Adam admitted, “To say that the economy has not been affected would be an understatement.”
Parliament is scheduled to reconvene on December 16, 2024, raising hopes for a resolution to the deadlock and a return to normal legislative functions.
