The Finance Minister of Ghana, Dr. Mohammed Amin Adam, has finally presented the long-awaited first-quarter budget for 2025. This budget had been delayed for several weeks due to disagreements between two major political parties in the country. These disagreements between the minority National Democratic Congress (NDC) and the majority New Patriotic Party (NPP) in Parliament created a standstill, which resulted in a government shutdown at the beginning of the year.
The delay was caused by unresolved issues in Parliament. One of the key points of disagreement was a request for tax waivers. Tax waivers are exemptions from paying certain taxes, and these waivers are often requested by businesses or individuals to reduce their tax burden. The NDC and NPP could not agree on these requests, which led to a delay in the presentation of the budget.
The outgoing government has asked for GH₵68.1 billion to cover operations until the incoming government, led by former President John Mahama, presents a comprehensive budget for the full year. This provisional budget is meant to keep the government functioning smoothly in the short term. The GH₵68.1 billion will be used to pay public sector workers, maintain infrastructure, and continue important social programs that help the people of Ghana.
The Second Deputy Speaker of Parliament, Andrew Asiamah Amoako, has referred the budget document to the Budget and Finance Committees. These committees are responsible for reviewing the budget in detail and analyzing the proposed figures and policies. After this thorough review, the committees will report back to Parliament for further debate and approval. This process is crucial because it allows MPs to discuss and decide whether the proposed budget is suitable and if it meets the country’s financial needs.
However, the delay in presenting the mini-budget has caused problems in the operation of the government. Parliament had adjourned on December 20, 2024, without the mini-budget being presented. This meant that the government had no official budget in place at the start of the new year. As a result, many government functions were temporarily disrupted, and public sector workers faced uncertainty about their salaries.
The Vote on Account is a provisional financial measure that is intended to keep the government running during this period of uncertainty. This measure is essential because it allows the government to access the necessary funds to continue operations while waiting for the full budget to be approved. Without this measure, the government would have faced more serious financial challenges.
The delay also led to frustration among members of the NDC, who felt that the government was not acting quickly enough to address the budget issues. The NDC members blamed the government for causing the delay, while the NPP blamed the NDC for not cooperating in Parliament. This back-and-forth blaming only made the situation worse, as both sides seemed more focused on political rivalry than on solving the country’s financial challenges.
This ongoing delay and political dispute has led to several operational challenges. The government, without an approved budget, has struggled to make payments for crucial public services. This included payments for essential services like healthcare, education, and transportation. Furthermore, the delay also affected critical infrastructure maintenance projects that are vital for the country’s development.
One of the major concerns with the delay in the budget presentation is the impact on social intervention programs. These programs provide vital support to vulnerable members of society, including the elderly, the disabled, and low-income families. Without proper funding, many of these programs could face disruptions, which could harm those who rely on them the most.
Despite the political disagreements and the delays, there is still hope that the budget will be approved soon. The committees in Parliament are working hard to review the proposed budget and ensure that it meets the country’s financial needs. Once the review is complete, Parliament will debate the budget and, hopefully, approve it so that the government can continue its operations smoothly for the rest of the year.
The budget is a critical document that sets the financial direction of the country for the year. It outlines how the government plans to spend money on public services, infrastructure, and other essential areas. Without a budget, the government cannot make long-term plans or fund important projects, which can harm the country’s growth and development.
In conclusion, the delay in presenting Ghana’s first-quarter 2025 budget has created significant challenges for the government and the people. The political disagreements between the NDC and NPP in Parliament have caused frustration and led to a government shutdown. However, with the help of the Budget and Finance Committees, there is hope that the budget will be reviewed, debated, and approved soon. This will ensure that the government can continue to provide essential services and support the growth and development of the country in the year ahead.
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