KEY POINTS
- Parliament’s delay could impact public sector salaries and services.
- Ghana’s Constitution allows a contingency fund for emergencies.
- Using the Contingency Fund could reduce oversight on government spending.
Ghana’s Parliament is at a standstill, putting important government work at risk with less than three weeks until the December 7 general elections. A major worry is what could happen if the 2025 Budget and Economic Statement isn’t approved on time.
Without the budget, the government might struggle to pay for essential services, including public sector salaries. This raises fears that the government could face serious disruptions. But how likely is this to happen, and what does Ghana’s Constitution say about handling such situations?
Parliament’s role in budget passage
The 1992 Constitution and the Public Financial Management Act of 2016 mandate that the President presents the budget to Parliament at least one month before the end of the financial year. This means the 2025 budget must be laid before Parliament by November 30, 2024.
Clause 2 of Article 179 further requires that all public sector expenditures, including those for Parliament, the judiciary, and Ministries, Departments, and Agencies (MDAs), be presented in an Appropriation Bill. This bill authorizes the government to withdraw funds from the Consolidated Fund to meet its financial obligations.
If the budget is not passed, it raises serious concerns about how the government will fund its operations, including salaries for public sector workers.
Contingency fund: A temporary solution?
Anticipating scenarios where Parliament fails to pass the budget, Article 177 of the Constitution allows the government to rely on the Contingency Fund for emergencies. The fund enables the executive to withdraw money without prior Parliamentary approval, but the funds must be accounted for as soon as possible.
While this provision offers a temporary solution, Member of Parliament for Asante Akim North, Andy Kwame Appiah-Kubi, warns that relying on the Contingency Fund could undermine Parliament’s ability to hold the executive accountable.
Constitutional provisions on fund withdrawals
The Constitution outlines strict rules for the withdrawal of public funds:
- Money can only be withdrawn from the Consolidated Fund for expenditures authorized by the Constitution or Parliament.
- Advances from the Contingency Fund are allowed for urgent or unforeseen needs, but supplementary estimates must be presented to Parliament to replace the funds used.
These safeguards aim to maintain fiscal accountability while addressing emergencies.
Potential impact of budget delays
If Parliament does not sit in the next 10 days, critical government functions could face disruptions. The use of the Contingency Fund may provide short-term relief, but it comes with limitations and risks, including reduced oversight.
As the deadline for budget approval approaches, the pressure is on Parliament to resolve the impasse and ensure the smooth operation of government activities.
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