Stakeholders urge government: don’t cut funding to key sectors of economy

Stakeholders urge government: don’t cut funding to key sectors of economy

• The stakeholders

In spite of dwindling economic fortunes, the government has been urged not to cut expenditure on key sectors that seek to promote social and economic well-being of citizens.

Stakeholders say areas such as Education, Health, Water, Sanitation and Hygiene (WASH) as well as Child and Social Protection should continue to receive adequate funding, in view of current economic hardship.

This and other recommendations were the highlights of a discussion on ‘Social Protection Financing in Ghana’ organised by SEND Ghana and its partners in Accra last Friday.

A United Nations International Children’s (UNICEF) Report presented at the forum indicated that reduction in expenditure of important sectors of the economy may adversely affect the gains made in reducing poverty and attaining the Sustainable Development Goals (SDGs).

The report which made analysis and provided recommendations across five strategic sectors observed that budget allocation to the education sector had decreased from 15.74 per cent in 2020 to 13.11 per cent in 2022, and that 90 to 95 per cent of the allocations to the Ministry of Education went into payment of compensation of employees.

This scenario which is evident in other government Ministries Departments and Agencies (MDAs), according to UNICEF, would “negatively affect the delivery of social services, especially for women, children and the vulnerable.”

“Investing in children’s health, nutrition, sanitation, education and protection is important to unlock their potential and contribute positively to economic activities. The cost of inaction in these areas is enormous and cannot be overlooked,” it stated.

Stressing the need to secure social intervention policies, the report prompted the government to ensure “regular and timely” release of funds for social programmes such as the Livelihood Empowerment Against Poverty (LEAP) which had consistently experienced delay in payments.

The report established that though allocations for LEAP had seen “significant increases since 2017,” the value of the money paid to beneficiaries had reduced as a result of inflation, hence the need to adjust the payments accordingly.

In the health sector, it called for increase in total health budget as well as “investments that tackle the prevention and control of communicable diseases, neonatal health and adolescent reproductive health.”

While urging increased budget allocation to key sectors, it suggested “progressive revenue-raising policies,” to support social interventions and further proposed introduction of “a shock-responsive emergency fund to ensure that the government can respond quickly to emerging crises.”

Panelists at the forum, including Members of Parliament, Representatives of MDAs, Academia and Civil Society Organisations, maintained that government expenditure in areas such as social protection, education, health, among others, should be seen as an investment rather than waste of resources.

Mr Mawutor Ablo, Director, Ghana Productive Safety Net Project, Ministry of Gender and Social Protection (MOGSP), said equitable resource allocation to fundamental sectors of the economy would have positive impact on the citizenry and contribute to national development.

“Any money spent on the extremely poor and vulnerable is empowering them to become more productive so if we accept social protection as an investment we have to create the fiscal space for that to happen,” he noted.

Mr. Nii Lantey Vanderpuje, Member of Parliament for Odododiodo Constituency, also emphasised the need to increase funding for social protection and basic social services to help ease the economic burden on citizens.

Dr. Emmanuel Ayifah, Deputy Country Director, SEND Ghana, said the organisation would continue to engage the government and stakeholders on the issues raised which would be factored into the 2023 Budget and Economic Policy Statement of the government.

By Ernest Nutsugah

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