Finance minister seeks approval for ₵500 million from Contingency Fund to address drought crisis

Finance Minister Dr. Mohammed Amin Adam has formally requested the release of GHS500 million from the Contingency Fund to address the growing threat of food insecurity caused by a severe drought in Northern Ghana.

The call for additional funds comes just days after the government unveiled an GHS8 billion relief package aimed at supporting farmers grappling with the devastating effects of the prolonged dry spell.

In a letter to Parliament’s Finance Committee, Dr. Amin Adam emphasised the critical need for urgent financial intervention.

“Considering that we are eight (8) months into the implementation of the 2024 Budget and the proposed interventions are unplanned expenditures occasioned by a ‘force majeure,’ Government cannot fund the request of GHS8.36 billion solely from a reallocation of existing budget lines in the 2024 Budget,” he stated.

To address the immediate needs, Dr. Amin Adam requested approval for the withdrawal of GHS500 million from the Contingency Fund, citing relevant constitutional and legislative guidelines.

“In light of the foregoing, we write to request approval from the Finance Committee for the withdrawal of GHS500 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,” the letter noted.

In addition to the request for funds, government is also seeking support from development partners and realigning existing fiscal operations within the 2024 Budget to mitigate the effects of the drought.

Responding to the crisis, government has already imposed a ban on the export of grains, effective immediately, to safeguard national food security.

The drought, now over two months long, has left food Northern Ghana without rain, stunting crop growth and threatening the livelihoods of thousands of farmers.

Source:classfmonline.com