Economic, governance, and agricultural experts are urging the government to formulate a comprehensive plan to support agriculture in order to tackle the soaring food prices in the country.

Such a plan, they argue, would not only address the growing hardships caused by increasing food prices but also help reduce borrowing and tackle the infrastructure deficit hindering the country's development.

According to data from the Ghana Statistical Service, food inflation reached 54.2 per cent in June 2023, the highest rate in several years.

In light of this situation, Dr. John Kwakye, the Director of Research at the Institute of Economic Affairs, Dr. Kojo Pumpuni Asante, the Director of Advocacy and Policy Engagement at the Ghana Centre for Democratic Development (CDD-Ghana), and Dr. Charles Nyaba, the Executive Director of the Peasant Farmers Association of Ghana, have shared their expectations for the 2023 Mid-year budget review.

They are calling on Finance Minister, Mr. Ken Ofori-Atta, to present measures aimed at improving revenue mobilization, controlling the growing public debt, increasing investment in capital expenditure, and reducing corruption.

Finance Minister Ken Ofori-Atta is scheduled to present the Mid-year Budget Review to Parliament, as required by Section (28) of the Public Financial Management Act, 2016 (PFMA) Act 921. This review will be the first one since the government sought a three-year Extended Credit Facility with the IMF for $3 billion in 2022, with the goal of restoring macroeconomic stability and ensuring debt sustainability.

Dr. Kwakye emphasizes the need for concrete strategies to boost revenue mobilization in order to reduce the government's reliance on borrowing to meet its revenue requirements.

“Plugging the tax loopholes, paying attention to property tax, addressing under declaration by importers and tackling tax evasion, cutting the size of the government can help raise the tax envelope much higher,” he stated, adding that government could also raise much revenue from the extractive sector.

The Director of Research at IEA proposed that in the Mid-year budget, the Finance Minister should present plans to support food processing and preservation to tackle post-harvest losses. Additionally, he recommended offering incentives to aid the transportation of food items from food-producing areas to cities.

Dr. Asante emphasized the need for the Finance Minister to outline specific policies and plans that the government intends to implement to address food inflation. He pointed out that citizens have been expressing general concerns about the rising food prices, but there has been no clear indication of the government's actions to tackle this challenge.

According to Dr. Charles Nyaba, the surge in food prices is due to the high cost of production, with food production expenses increasing by over 100 percent due to the withdrawal of subsidies on inputs like fertilizers and farm machinery.

The data from the Ghana Statistical Service for June 2023 indicates that food price inflation led the inflation basket at 54 percent, making it one of the highest inflation rates in Ghana in recent times.

Dr. Nyaba recommended that in the Mid-year budget review, the government should consider reintroducing the withdrawn subsidies and providing tax waivers on the importation of farm inputs.