The Institute of Statistical, Social, and Economic Research, ISSER, is worried about the effect the delay in passing the now rejected 2022 budget could have on investor confidence.
Speaking to Citi News ahead of the resumption of parliamentary work on Tuesday, the Director of the Institute, Prof. Peter Quartey, said the current impasse over the budget was creating uncertainty and sending bad signals.
“Investors don't like noise. Finance hates noise. Any little noise you make, and the investor will pull out because you don't want to lose so much capital.”
“Nobody likes uncertainty. Any uncertainty can affect government business,” he added.
Aside from investor confidence, Prof. Quartey also reminded that the government machinery could grind to a halt because of the delays.
“With the wages and salaries, if we are not careful, we will not be able to pay salaries, and you can imagine what happens when the government cannot pay salaries because of the impasse.”
Last Friday, the Minority Caucus voted to reject the budget after the Majority Caucus staged a walkout.
However, the Majority Caucus maintains that the rejection of the budget was unconstitutional.
The Minority is open to passing the budget if it is revised to remove the e-levy proposal, provide for the construction of the Blekusu sea defense project, and withdraw the Agyapa deal among others.
It is however unclear if a revised budget would be presented today, Tuesday, or that Parliament will use its own processes to deal with the matter.
The government intends to spend an estimate of GHS 137.5 billion, while GHS 100.5 billion is to be raised as total revenue for 2022.