Finance Minister Urges Parliament To Approve GH₵500M Withdrawal From Contingency Fund Over Drought

• Finance Minister Dr Mohammed Amin Adam has urged Parliament to approve the withdrawal of GH₵500 million from the Contingency Fund
• According to him, the withdrawal is to support the government’s emergency response to the ongoing drought in the country's northern half
• He also said the government is also mobilising support from other development partners and realigning approved fiscal operations in the 2024 budget

The Finance Minister, Dr Mohammed Amin Adam, has requested that the parliament approve the disbursement of GH₵500 million from the Contingency Fund.

The GH₵500 million disbursement is part of the government’s emergency response to the ongoing drought in the country's northern half, which is threatening the country's food security.

The request follows President Akufo-Addo’s directive to the Finance Ministry to raise GH₵8 billion as a relief package for drought-hit farmers.

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In a letter to parliament’s Finance Committee, the minister stated that the government cannot reallocate funds from existing budget allocations in the 2024 budget to address the unforeseen expenditures occasioned by the dry spell.

Dr Amin Adam further told parliament that the government is also mobilising support from other development partners and is realigning approved fiscal operations in the 2024 budget to complement the withdrawal.

He said the government, under its National Emergency Response Programme, will implement measures necessary to address the drought and its threat of food insecurity.

Government bans grain exports

In the meantime, the government has announced a ban on grain exports, including maize, rice and soybeans.

Citi News reported that the Minister of Food and Agriculture, Bryan Acheampong, announced this decision during a press briefing on Monday, August 27.

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During the briefing, he explained that the ban was to ensure the availability of crops for the domestic market.

He urged those with grain stocks to contact district directors, aggregators, and the crops directorate nationwide if they are interested in selling.

This was after reports disclosed that 435,872 farmers in Ghana’s northern sector had lost an estimated GH₵3.5 billion in investment due to the drought.

The Peasant Farmers Association has expressed displeasure with the government’s move to ban the export of key grains, including maize, rice and soybeans.

Peasant farmers kick against ban

YEN.com.gh reported that Bismark Owusu Nortey, the president of the Peasant Farmers Association, said the measure was done without consulting the peasant farmers most affected by the drought.

He said the peasant farmers are major stakeholders in the sector, and it would have been prudent if they were involved in finding a lasting solution to Ghana’s food insecurity crisis.

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He said the ban on grain exports may have unintended consequences on peasant farmers.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

Source: YEN.com.gh