budget battles

Ghana: Budget impasse in parliament sparks governance crisis

By Jonas Nyabor

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Posted on December 3, 2021 15:47

Ghana’s parliament has voted to reject the 2022 budget, the first time since the West African country returned to multi-party politics in 1992. The political impasse has created doubts about the future of a country that’s seen as a rare bright spot for democratic governance in the region and could scare away investors, experts argue.

Confusion reigns in the 275-seat legislature. Ghana’s hung parliament has 137 MPs each for the government and the opposition, with the balance of power hanging on one independent candidate.

And squabbles over constitutional interpretations may come back to haunt to government.

The opposition’s main concerns were with the government’s planned introduction of a 1.75% value tax on electronic financial transactions starting in January 2022 and the reintroduction of a controversial deal on mineral royalties (Ghana is Africa’s largest gold producer).

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