What Happens If Ghana’s Budget Isn’t Passed: Public Sector Salaries at Risk?

In an unprecedented move, Ghana enters 2025 without an official budget, a situation that has raised concerns about the government’s ability to fund public sector salaries and other essential services.

For the first time since the establishment of the 4th Republic, Ghana has failed to pass the national budget before the end of the year.

The 2024 mini-budget, which was meant to secure funds for the first three months of 2025, was delayed after Finance Minister Dr. Mohammed Amin Adam failed to present it on time.

The delay has led to mounting concerns among public sector workers, with some fearing they might not receive their salaries in the new year.

The Minority Caucus in Parliament has criticized the delay, even threatening that the Finance Minister could face jail time if the mini-budget is not presented.

However, the House has adjourned to January, leaving the country in a state of uncertainty.

According to the 1992 Constitution of Ghana, the Executive is required to present the national budget before the end of November each year.

Article 179 mandates that the President present estimates of government revenue and expenditure to Parliament for approval. Failure to meet this deadline places the country in an unusual financial limbo.

So, what happens if the budget is not passed in time? Fortunately, the 1992 Constitution has a contingency plan in place.

If the budget is delayed, the government can rely on the Contingency Fund, which can be used for urgent and unforeseen expenditure needs.

However, this comes with the limitation that the Executive can access these funds without immediate Parliamentary approval, though they must account for the spending soon after.

Despite the challenges, experts suggest that there is no immediate cause for panic.

Public sector workers are unlikely to miss their salaries, and the government is expected to act quickly to resolve the financial situation once Parliament reconvenes.

With the next administration set to take office in January 2025, there is hope that the budgetary delay will be addressed promptly.