Brief: Ghana's 2021 Budget Standoff

President Akuffo Addo's New Patriotic Party (NPP) holds 137 seats. So does the opposition National Democratic Congress (NDC). There is one independent (adjudication of ongoing disputes notwithstanding). That balance is unprecedented. However, although statements about a new, more consensual, way of doing political business were made by leading figures at the start of the year, we have seen little action in that direction thus far e.g. normal slate of ministerial appointments.

Speaker Bagbin has cast himself as a non-partisan actor and appears to mean it. Nevertheless, his threat about the budget bill demonstrates how unless the NPP finds a new way to operate in the National Assembly, the government's legislative programme will be vulnerable. This will have to be addressed. Ghana's budget deficit (11.7% of GDP) and public debt (76% of GDP) make it so.

We are an African-owned and managed firm delivering local knowledge in support of transformative and sustainable economic outcomes in the region. If you would like to learn more about our work, please don’t hesitate to get in touch. We would love to hear from you! questions@songhaidvisory.com