The government of Ghana has decided to enhance its social welfare programs by providing GHS5.4 billion to support the school feeding project, the National Health Insurance Scheme (NHIS), and the Livelihood Empowerment Against Poverty (LEAP) program.
Dr. Mohammed Amin Adam, the Minister of Finance, made this significant financial pledge known to Parliament on July 23, 2024, at his mid-year budget review.
Dr. Adam underlined the government’s steadfast commitment to improving the standard of living for all Ghanaians, especially the most vulnerable groups in the country, during his presentation to Parliament. According to him, the heavy payment shows how committed the government is to offering crucial assistance and social services.
“To reduce the burden on the vulnerable, we have disbursed GH¢5.4 billion to support LEAP, School Feeding Programme, Capitation Grant and NHIS since January 2024,” he said.
These donations will be largely used for the LEAP program, which gives cash transfers to the nation’s poorest households. In order to reduce poverty and raise living standards, LEAP has shown to be an invaluable resource over time. The program’s reach is anticipated to increase with the additional money, allowing more households to take advantage of this crucial assistance.
An additional large boost will be given to the school feeding program, which aims to enhance the nutritional status of students in public basic schools. A child’s ability to learn and grow physically and cognitively depends on proper nutrition, which also positively affects their general wellbeing and academic achievement. The government wants to improve educational outcomes nationwide and fight child malnutrition by expanding the school feeding program.
The additional funds will also help the National Health Insurance Scheme (NHIS). With millions of residents receiving vital healthcare services through it, the NHIS is a pillar of Ghana’s healthcare system. The government hopes to improve the program with this funding infusion and make sure that more individuals can get high-quality healthcare without having to worry about their finances.
The Minister of Finance emphasized the larger economic framework in which these social initiatives are being undertaken. He emphasised that the administration is still dedicated to responsible budgetary management and calculated expenditures in social infrastructure, even in the face of the difficulties presented by the unpredictability of the world economy. While acknowledging the current state of the economy, Dr. Adam emphasised the need to exercise fiscal restraint and fund initiatives that promote equitable growth and strengthen the foundation of a resilient economy.
Dr. Adam also discussed encouraging changes in the nation’s economic performance, pointing out that Ghana’s GDP expanded by 4.7% in the first quarter of the year, above preliminary estimates. He credited strong economic management and successful policy measures for this expansion.
The Minister also emphasised how businesses and individuals have benefited from the efforts made in stabilising the currency rate and inflation. Making progress in these areas is essential to preserving economic stability and fostering an atmosphere that encourages investment and expansion.
“Despite the global economic headwinds, our government remains steadfast in its commitment to fiscal discipline and social investment,” Dr. Adam stated, summarising the government’s strategy. In order to promote inclusive growth and create a resilient economy, we think that social protection programs should be strategically funded.