On the 17th of November, Ghana’s Finance Minister, Ken Ofori Atta read out the planned budget for the government activities and needs for 2022. This budget is subject to approval or rejection by the majority in parliament.
This budget made noise as there was voiced disdain and refusal by the people of Ghana due to what was considered ridiculous tax increments in especially electronic financial transactions.
On the 26th of November, parliament failed to pass the budget. This was the first time in the fourth republic of Ghana that a budget hearing had ended without the expected approval.
How will the government fund its activities and what will this mean for the agricultural industry?
The 2022 budget document highlighted the programmes that the various ministries planned on undertaking and continuing, like the Planting for food and jobs program. The aim of the programme is to sustain the gains made in increased productivity of selected crops, food security, and job creation.
Without enough funds, the government is unlikely to be able to operationalize the programme for the agricultural sector in time to ensure production schedules are not affected. The input subsidy programme may suffer.
With the cost of fertilizer rising, the crisis we are to meet in the new future is increasingly becoming glaring in our viewpoint.
An amount of over GHS800 million has been allocated to the Ministries of Food and Agriculture and Fisheries and Aquaculture. The funds are to enable the ministries to implement programmes including planting for food and jobs, rearing for food and jobs, aquaculture development, etc.
The impact of COVID-19 on Ghana’s economy and the agriculture sector has been massive. Global fertilizer prices, fuel price increases, and supply chain challenges have negatively impacted the sector. The budget uncertainties make it difficult for players in the value chain plan appropriately and execute same.
–
By: Michelle Kotey | AgriGold Magazine