Parliament rejects financial plan: How will government subsidize its activities? 

Wednesday 26th of June 2024

Parliament rejects financial plan: How will government subsidize its activities? 

With Parliament dismissing the 2022 Budget Statement and Economic Policy, the inquiry presently is the means by which will government reserve its tasks in 2022. 

Article 178 of the 1992 Constitution gives Parliament the sole power to endorse assets for government's use. 

It specifies that "no cash will be removed from the united asset" with the exception of the cash has been approved by an Appropriation Act, or by a strengthening gauge endorsed by a goal of Parliament or by an Act of Parliament" 

This is the reason per Article 179 of the 1992 Constitution, the Finance Minister addressing the President, lays before Parliament a spending plan one month before the lapse of the monetary year to be passed into an Appropriation Act. 

Crisis financing 

The Constitution visualizes a circumstance where Parliament will dismiss the spending plan of the public authority and in this manner made arrangements for it. 

Per Article 180 of the 1992 Constitution, in case apparently the Appropriation Act (the Bill passed by Parliament subsequent to supporting the spending plan ) won't come into activity toward the start of the monetary year, the President, with the "earlier endorsement of Parliament by a goal, approve the withdrawal of cash from the Consolidated Fund to meet use important to carry on the administrations of the Government" for a very long time before the coming into power of the Appropriation Act. 

This implies that if by January 2022, a financial plan has not been passed by Parliament, President Akufo-Addo can look for endorsement from Parliament and pull out cash from the Consolidated Fund to meet government use for a long time. 

This crisis financing can be enacted at regular intervals until the spending plan is at long last passed by Parliament. 

It should be noticed that without Parliament supporting the initiation of this crisis financing , government business will come to a standstill, as the public authority will not be able to pay compensations of laborers and furthermore meet different consumptions. 

This peculiarity albeit new in Ghana is normal in the US , where the US Senate in some cases will not pass the financial plan and furthermore neglect to pass a crisis subsidizing prompting the closure of some taxpayer supported organizations.


COMMENTS
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