Accra-Ghana, Nov. 14, GNA – The Institute of Economic Affairs (IEA), a policy think tank, has asked the government to prioritize social spending in the 2024 budget in to lessen the economic burden on Ghanaians.
The IEA specifically proposed that the amount allocated to Livelihood Empowerment Against Poverty (LEAP) beneficiaries be increased, and the scheme be expanded to cover more people.
The Institute also proposed that the daily feeding rate of GHcS1.20 per pupil under the Ghana School Feeding Programme [a government program that provides food to children in kindergarten through primary six] be increased to GHS6.00 as soon as possible.
“If the numbers involved are such that the increase will overburden the budget, then Government must consider cost-sharing with parents,” the policy Think-Tank recommended.
The IEA also advocated for increased funding for the National Health Insurance Scheme (NHIS), broadening coverage to include cancer and dialysis treatment, and expanding the benefits package to adequately protect vulnerable groups.
Dr. John Kwakye, Research Director, IEA, said in a 10-page document on the State of Ghana’s Economy and Expectations of the 2024 Budget that recurrent inflation continued to cause a high cost of living and economic hardship in Ghana.
“Ghanaians are experiencing severe hardships from the economic crisis and some of the Extended Credit Facility (ECF) conditions [under the ongoing implementation of Ghana’s US$3 billion loan-support programme with the International Monetary Fund.”
These include high inflation, high utility tariffs, high taxes, effects of abolition or reduction of consumer subsidies, slow pace of salary increases, slow pace of public hiring, and effects of debt restructuring.
According to the Ghana Statistical Service (GSS), 14.4 million (46.7%) Ghanaians were multidimensionally poor, suffering from poor living, education, and health conditions.
While 13 million (42.0 per cent) Ghanaians faced food insecurity in the second quarter of 2022, GSS also reported that the country’s unemployment rate had reached 13.9 per cent in the second quarter of 2023.
The World Bank has also reported that some 850,000 Ghanaians were pushed into poverty because of rising prices of goods and services [high inflation] in 2022.
Dr Kwakye recommended that “the 2024 budget should indicate a clear path to taming inflation on a durable basis, thereby, reducing its associated economic hardships.”
