By Daniel Bampoe
The National Democratic Congress Government operations are slowly grinding to a halt as the Ministry of Finance continues to withhold budgetary allocations for the 2025 fiscal year, leaving several ministries, departments, and agencies (MDAs) in dire financial straits.
Reliable information gathered by The Daily Gist indicates that most MDAs have not received significant releases since the beginning of the year, making it impossible for them to meet basic administrative obligations such as paying contractors, stationeries, fueling vehicles, or sustaining ongoing development projects.
Sources say the only notable disbursement made so far is to the District Assemblies Common Fund (DACF) and NHIF, with all other sectors still waiting anxiously for their budgetary allocations barely three months to the end of the year.
Curiously, while waiting for releases which appear may not come, the finance Minister, Ato Forson has written to his colleague ministers to submit their budget proposals for 2026 as he prepares to present the 2026 budget in November 2025.
Not only allocations for running the ministries that had been withheld by the finance minister, salaries of ministers appointed nine months ago have not been paid making them to lament and rely on handouts from contractors.
According to Rashid Pelpuo, Minster of Employment and Labour Relations, ministers have not been paid since they were appointed nine months ago.
A Deepening Financial Freeze
Officials across key ministries—including Education, Health, Interior, Communications, and Local Government—confirm that their accounts remain dry despite several appeals to the Ministry of Finance.
The freeze, which reportedly began quietly months ago, has intensified in recent weeks under the watch of Finance Minister Dr. Cassiel Ato Forson, sparking growing frustration among public sector heads and civil servants.
Even Parliament has not been spared. Reports from the legislature suggest that statutory payments, including transfers to its operational account, have not been made this quarter.
To compound matters, the Controller and Accountant-General’s Department continues to deduct car loan installments from MPs’ salaries, even though the official vehicles have yet to be delivered.
Old Complaints, New Realities
This fiscal paralysis follows earlier complaints from ministers several months ago over the Finance Ministry’s delays in releasing funds for procurement and project execution.
At the time, it was alleged that the directives for stricter spending controls were issued by President John Dramani Mahama himself, as part of efforts to tighten fiscal discipline and prevent overspending under the IMF programme.
Although Forson later assured his colleagues that the problem would ease, the situation has only worsened. “This is no longer a delay in procurement.
It’s a total freeze,” a senior government source disclosed. “Some ministries can’t even pay for stationery, fuel, or basic utilities.”
Tight Controls from the Top
Since assuming office, Ato Forson has implemented sweeping measures to control government spending.
One such directive requires his personal approval for all contracts and payments, no matter how small.
While the move is intended to ensure transparency and curb fiscal leakages, it has also slowed down bureaucratic processes to the point of paralysis.
Sources within the Finance Ministry say Dr. Forson’s caution stems from fears that releasing large sums of money into the system could increase demand for foreign exchange and weaken the cedi.
“He believes too much liquidity will trigger dollar speculation and reverse recent gains in stabilizing the cedi,” one senior official explained.
