Former Finance Minister Seth Terkper says Ghana risks triggering an unprecedented government shutdown early next year should Parliament fail to pass a provisional budget this month.
“We risk a government shutdown or at best, lean government spending from January,” Seth Terkper said in an interview,as quoted by Reuters.
According to him, this may have an adverse effect on interest payments and funding for the transition.
Speaker of Parliament, Alban Sumana Kingsford Bagbin, declined a recent request to reconvene the House before the polls but has expressed determination to transact all businesses of the 8th Parliament before the transition to the 9th Parliament.
“I wonder how the proposed twenty-two items could be transacted within two days. I accordingly suggest that government prioritizes these businesses together with others not captured by your memo for consideration after the conduct of the General elections on the 7th of December 2024. The House will resume sitting after the elections to complete all essential matters before a seamless transition to the 9th Parliament of the Fourth Republic of Ghana,” Mr Bagbin assured.
Majority Leader Alexander Afenyo-Markin petitioned him to recall the House to consider twenty-two (22) outstanding urgent government and public businesses two days ahead of the December 7 polls after his side of the House failed to show up in Parliament for the immediate past sitting they requested to be held.
Concerns have been raised about the potential implications of this hiatus, including a legislative backlog that could delay critical national decisions, and this has been reiterated by Mr Seth Terkper.
The government is set to pay GHC36 billion in interest on its debt in the second half of 2024, per analysed data from the Ministry of Finance.
Projections from the 2024 Annual Borrowing Plan indicate a total of GHC55.9 billion in interest payments for the year, with GHC36.9 billion for domestic debt and GHC19.0 billion for external debt. Of the domestic interest payments, GHC30.3 billion will be paid in cash, while GHC6.6 billion will be paid in kind.
In the first half of the year, the government spent GHC19.0 billion on interest payments: GHC14.5 billion in the first quarter and GHC4.5 billion in the second quarter.
Finance Minister Mohammed Amin Adam sought to present the provisional budget on November 15, but that was not successful as the House was on recess.
Parliament now has a few weeks to pass the provisional budget to avert cuts and a potential shutdown.





















































