The Agriculture sector is set to face a major decline in productivity that may result in low output due to a massive cut in funds to stakeholders in the sector.
In the 2016 budget, the sector is expected to receive GH₵501,501,708.00 out of which the Government of Ghana (GoG) is committed to provide GH₵322,094,227.00.
The remainder, which has not been budgeted for has been laid at the doorstep of the Ministry of Agriculture to use internal means to generate the fund, while the country looks to Development Partners for the surplus.
Speaking at a post-budget analysis forum organized by the Institute of Financial and Economic Journalists (IFEJ) and the Ministry of Finance in Accra Dr. Kwadwo Tutu, an Agricultural Economist from the University of Ghana, bemoaned the decrease in allocations to the agricultural sector in the 2016 budget.
He was of the view that the developments in the sector indicated that agriculture was not a priority to government.
“The agriculture sector as a percentage of GDP has declined from about 70 percent in the 1980s and 1990s to about 19 percent which showed the sector was not a priority”, he said.
Dr Tutu pointed out that considering the rates of inflation, the amount allocated to the sector by the government is inadequate.
Madam Catherine Amegatse, Principal Agricultural Engineer, who represented the Ministry of Food and Agriculture (MoFA) at the forum, said the decrease would affect the activities of MoFA.
She maintained that the ministry currently needs funds to undertake major projects and activities such as the agriculture mechanization drive.
She, however, noted that MoFA in spite of its constraints was working on several initiatives in its quest to mechanize agriculture.
“This includes a project to establish mechanization centers in all districts of the country to provide mechanization services to farmers who cannot afford to buy the machinery needed to mechanize their farm activities”.
“So far there are 89 of these centers in 62 districts of the country,” she added.
Mr. David Klotey Collison, Group Head, Budget Development of the Ministry of Finance, maintained however that agriculture was a priority of government as evidenced by the allocation to the sector under the Annual Budget Funding Amount (ABFA) of oil revenue, where agriculture received the highest allocation of about GH₵300 million.
He said the decrease in the GoG’s budgetary allocation cuts across all sectors of the economy and was due to the high interest rate payments and amortization, as well as increases in compensation payments.
He added that the aspects of the allocation covered by Development partners was not always grants as some people thought, but loans taken by government for the sector and that also constitutes government allocation to the sector.
