Finance minister seeks GH₵500m from contingency fund to address drought
Finance Minister Dr. Mohammed Amin Adam is seeking approval from Parliament’s Finance Committee for GH₵500 million from the Contingency Fund.
This request is part of emergency measures to combat the looming food insecurity caused by the dry spell affecting eight regions of Ghana.
It follows President Akufo-Addo’s directive for the Finance Ministry to secure an GH₵8 billion relief package to support farmers struggling with the severe impacts of the drought.
In a letter to Parliament’s Finance Committee, the minister indicated that “considering that we are eight (8) months into the implementation of the 2024 Budget and the proposed interventions are unplanned expenditure occasioned by a “force majeure”, Government cannot fund the request of GH¢8.36 billion solely from a reallocation of existing budget lines in the 2024 Budget.”
“In light of the foregoing, we write to request approval from the Finance Committee for the withdrawal of GH¢500 million from the Contingency Fund, in accordance with Article 177 subsection 1 of the 1992 Constitution, Section 36 subsection 1 of the Public Financial Management Act, 2016 (Act 921) as well as Section 227 subsection 1 of the Standing Orders of Parliament of Ghana.”
This funding is expected to “complement this withdrawal,” as the government is also seeking support from development partners and adjusting fiscal plans in the 2024 Budget.
The ministry stated that the National Emergency Response Programme will implement necessary measures to tackle the crisis.
In response, the government has imposed an immediate ban on exporting key grains such as maize, rice, and soyabeans.
During a press briefing on August 26, the Minister of Food and Agriculture Bryan Acheampong emphasized that this measure is crucial to ensure these essential crops remain available in the domestic market.
This decision follows alarming reports that 435,872 farmers have already lost approximately GH₵3.5 billion in investments due to the ongoing dry conditions.