Gov’t To Use Emergency Funding Request To Run Economy After Rejection Of 2022 Budget

Following the rejection of the 2022 Budget by Parliament on Friday, questions have emerged as to whether the development means an automatic logjam for government business.

According to experts in such rare situations, the disgraced Akufo Addo administration is permitted under Article 180 of the Constitution to resort to emergency funding.

Per Article 180 of the 1992 Constitution, if the Appropriation Act, which is the Bill passed by Parliament after approving the budget, is unable to come into operation at the beginning of a financial year, the President, can seek approval of Parliament to authorize the withdrawal of funds to run government business.

The “prior approval” that will be required from Parliament will be in the form of a resolution and the amount of money that the President can withdraw should be enough to run the country for three months at a time until the Budget is approved by Parliament

Therefore, if by January 2022, the budget is not passed by Parliament, President Akufo-Addo can seek approval from Parliament and withdraw money from the Consolidated Fund to meet government expenditure for three months.

If after three months the budget is still not passed, then the President can, with the approval of Parliament, do another emergency withdrawal.

On Friday, a one-sided Parliament rejected the 2022 budget on account of the Minority NDC’s unmet demand for the unpopular e-levy to be removed and for government to make allocations towards the Keta Sea Defense project.

Article 178 of the 1992 Constitution gives Parliament the sole authority to approve funds for the government’s expenditure. According to it, “no money shall be withdrawn from the consolidated fund” except the money has been authorised by an Appropriation Act, or by a supplementary estimate approved by a resolution of Parliament or by an Act of Parliament”