To enhance Ghana’s social welfare programs, the government has allocated GHS5.4 billion to support the Livelihood Empowerment Against Poverty (LEAP) program, the National Health Insurance Scheme (NHIS), and the school feeding initiative.
This significant financial commitment was announced by the Minister for Finance, Dr. Mohammed Amin Adam, during his mid-year budget review to Parliament on July 23, 2024.
Dr. Adam underscored the government’s dedication to improving the quality of life for all Ghanaians, especially the most vulnerable populations. He stated that this substantial allocation demonstrates the government’s resolve to provide essential social services and support.
“To reduce the burden on the vulnerable, we have disbursed GH¢5.4 billion to support LEAP, the School Feeding Programme, the Capitation Grant, and NHIS since January 2024,” he said.
A significant portion of these funds will go towards the LEAP program, which provides cash transfers to the poorest households in Ghana. LEAP has been instrumental in reducing poverty and improving living standards over the years. The additional funding is expected to expand the program’s reach, benefiting more households.
The school feeding program, aimed at improving the nutritional status of children in public basic schools, will also receive substantial funding. Proper nutrition is crucial for children’s physical and cognitive development, impacting their educational performance and overall well-being. By boosting the school feeding program, the government aims to combat child hunger and enhance educational outcomes nationwide.
Additionally, the NHIS will benefit from the new funding. As a cornerstone of Ghana’s healthcare system, the NHIS provides essential health services to millions. The additional funds will strengthen the scheme, ensuring more people can access quality healthcare without financial strain.
The Finance Minister highlighted the broader economic context of these social investments. Despite global economic uncertainties, the government is committed to prudent fiscal management and strategic investments in social infrastructure. Dr. Adam acknowledged the economic challenges but emphasized the importance of maintaining fiscal discipline while investing in programs that foster inclusive growth and build a resilient economy.
Dr. Adam also reported positive developments in Ghana’s economic performance, noting a 4.7% growth in the first quarter of the year, surpassing initial projections. He attributed this growth to effective policy measures and robust economic management.
The Minister also highlighted progress in stabilizing inflation and the exchange rate, which has brought relief to businesses and households. Improvements in these areas are crucial for maintaining economic stability and creating a favorable environment for investment and growth.
Summarizing the government’s approach, Dr. Adam stated, “Despite global economic headwinds, our government remains steadfast in its commitment to fiscal discipline and social investment. We believe that strategic spending in social protection programs is essential for fostering inclusive growth and building a resilient economy.”
