As Ghana prepares for a transition of power from President Akufo-Addo to President-elect John Dramani Mahama, a critical issue has arisen regarding the presentation of the mini budget. In an election year, the full budget for the next fiscal year is typically not presented due to the uncertainty of the election outcome. Instead, the Constitution and the Public Financial Management Act allow for a request to spend on statutory obligations, such as public sector worker emoluments, debt services, and strategic expenditures, in the first quarter of the following year.
This expenditure in advance of appropriation must be approved by Parliament before December 31 of the election year. However, with Parliament currently on recess, there is a risk that the mini budget may not be presented and approved before the deadline. If this occurs, a government shutdown will be triggered, preventing the outgoing government from spending from January 1 to January 6, 2025, despite having the mandate to govern.
The implications of this delay are far-reaching. The Controller and Accountant General will not be permitted to effect any payments, and no civil or public servants, including institutions such as public educational institutions, Parliament, the Judiciary, and the Bank of Ghana, will be allowed to spend. Any expenditure on the inauguration of the President that is not already approved will also become illegal.
In this scenario, the new government will have to take swift action to address the situation. On or after January 7, 2025, the new President will receive the mandate to govern and spend in the name of the Republic. The President can delegate an appointee to present the mini budget for approval, but since there will be no vetted appointees at that time, the Vice President will be the only official eligible to present the mini budget.
This will be a historic moment, as it will be the first time a Vice President presents the mini budget to Parliament. If assigned, Vice President Naana Jane Opoku-Agyemang will make history as the first female Vice President to present a mini budget to Parliament on behalf of the President.
While the delay in presenting the mini budget may cause a brief disruption, Ghanaians can be assured that the new government will address the situation with utmost respect for the people and the economy. The transition of power from one government to another is a critical moment in any democracy, and it is essential that all stakeholders work together to ensure a smooth transition.
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