The Ghanaian government has acknowledged that the ongoing parliamentary stalemate has delayed the disbursement of $300 million in crucial World Bank funding, aimed at stabilizing the economy and addressing fiscal deficits.
This funding, part of a broader financial assistance package, remains inaccessible due to a political impasse in Parliament, where a dispute over the majority’s control has left the legislative body on indefinite recess.
Finance Minister Dr. Mohammed Amin Adam, during his monthly economic update on Tuesday, revealed the direct impact of the deadlock. “We should have passed some legislations that should have qualified us for $300 million from the World Bank. However, the funds have not been disbursed because Parliament has not been working as it should. This is just one example of how the impasse in the house has affected government business,” he explained.
Despite the challenges, Dr. Amin Adam expressed optimism about resolving the stalemate soon to unlock the World Bank funds. He also emphasized the government’s readiness to present its mini-budget, although a confirmed date for its reading hinges on the resolution of the parliamentary crisis.
The minister admitted the broader implications of the standoff, warning that prolonged delays could lead to significant disruptions, including a potential government shutdown next year. This would particularly impact the payment of salaries to public sector workers, further straining the economy.
“To say that the economy has not been affected would be an understatement,” Dr. Amin Adam acknowledged, highlighting the urgency of resolving the crisis.
Parliament is set to reconvene on December 16, 2024, providing a critical window to address the standoff and prevent further economic fallout. Meanwhile, concerns persist about the long-term implications of political gridlock on Ghana’s fiscal and policy priorities.
