CSOs Budget Forum advocates for 10% investment in Ghana's agricultural sector
The Civil Society Organisations (CSOs) Budget Forum has recommended that the government allocate 10% of the $3 billion Extended Credit Facility (ECF) from the International Monetary Fund (IMF) to the country's agriculture sector.
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During a media briefing on Thursday, November 9, 2023, to unveil collated inputs for the upcoming 2024 Budget, the CSO Budget Forum emphasized that directing $300 million, equivalent to 10% of the IMF ECF, into agriculture could yield necessary multiplier effects, contributing to a reduction in inflation and exchange rates.
The proposed allocation aims to expand subsidies for essential agricultural inputs such as improved seeds, pesticides, and fertilizers. It could also facilitate interest rate subsidy loan schemes for farmers and actors in the agribusiness value chain. Moreover, the funds could be instrumental in supporting livestock production to curtail imports and providing dedicated funding for youth involvement in agribusiness through business incubations.
The CSOs Budget Forum's consolidated inputs for the 2024 Budget primarily focus on macro-fiscal measures, extractives and energy, social spending (health and education), and agriculture (food security).
Ghana, facing economic challenges, global uncertainties, and the impact of fiscal austerity measures with the IMF, has revised its growth forecast for the current year. The nation now anticipates a real GDP growth rate of 1.5%, down from the earlier projection of 2.8%. As part of a $3 billion bailout program established with the IMF in May, Ghana is engaging in a debt restructuring initiative due to debt unsustainability.
The government aims to reduce its debt-to-GDP ratio to 55% by 2028, down from 71.3% recorded in 2022. Compliance with IMF requirements involves negotiations with investors and efforts by the central bank to control inflation. The CSOs Budget Forum, consisting of 13 Civil Society Organisations, has urged the government to strengthen anti-corruption institutions, implement public procurement reform, fund audit institutions, and enforce measures of asset declaration and verification. The CSOs include: ACT Africa, NRGI, OXFAM, Revenue Mobilisation Africa, Watch Africa, Ghana Anti-Corruption Coalition, SEND Ghana, Africa Education Watch, Economic Governance Platform, ACEP, Tax Justice Coalition, BudgiT Ghana and Peasant Farmers Association of Ghana.
In the macro-fiscal domain, the CSOs advocate for increasing the e-commerce tax, doubling property tax, implementing high net worth taxation, taxing professional bodies, establishing an independent fiscal council, and scrapping the COVID-19 levy. In the energy sector, the CSOs call for effective measurement and reporting on tariff adjustment in the power sector. The CSOs Budget Forum seeks improvements in education and health, including an increase in the capitation grant, higher school feeding allocation, clearance of ICG arrears, and the development of a health contingency plan for the future.
The 2024 Budget and Economic Policy presentation by Finance Minister Ken Ofori-Atta is scheduled for November 15, 2023.
