I need GH₵500m from Contingency Fund to tackle drought – Finance Minister

In a way help tackle the drought problem in the some 8 Regions in Ghana, Dr. Mohammed Amin Adam, Ghana’s Finance Minister, has write to request GH₵500 million from the Contingency Fund.

The move to address the drought challenge has become necessary to reduce food insecurity and inflation in the country. It has been recorded that the drought has occurred in 8 out of 13 farming regions in Ghana.

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The finance Minister’s request came after the President of Ghana, Nana akufo-Addo, directed the ministry of finance to provide a GH₵8 billion relief package to help mitigate the challenges farmers are facing in this unexpected drought season.

In a letter to Parliament’s Finance Committee, the Finance 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.”

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This amount is expected to “complement this withdrawal, as government is mobilizing support from Development Partners as well as realigning approved fiscal operations in the 2024 Budget.”

The Finance Ministry defended it’s request  by stating that the National Emergency Response Programme will help government to put in place measures needed to address the drought.

In a move to reduce food insecurity and inflation, the government of Ghana has placed a ban on the exportation of key grains like maize, rice and and beans.

During a press briefing on August 26, Minister for Food and Agriculture, Bryan Acheampong said “this measure is essential to ensure the availability of these critical crops on the domestic market.”

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