Analysis of public expenditure in support of the food and agriculture sector in Ghana, 2006-2012

This technical note offers an in-depth study of the level, composition and coherence of public expenditure in support of food and agriculture in Ghana using data collected from the Ministry of Food and Agriculture (MOFA), the Ministry of Finance (MOFEP) and 13 development partners active in the country1. The study uses the MAFAP methodology for agriculture public expenditure analysis (MAFAP, 2013) and covers the 2006-2012 period. The summary of the study is presented below. First of all, the sha re of total public expenditure in support of food and agriculture, including administrative costs (EFAAC) within total public expenditure was rather low between 2006 and 2012, fluctuating between 3 and 5 percent. Secondly, the composition of total public expenditure in support of food and agriculture, excluding administrative costs (EFA) varied significantly during these years. The MAFAP methodology distinguishes between agriculture-specific expenditure (monetary transfers that are specific to t he agricultural sector, i.e. agriculture is the only, or principal, beneficiary of a given expenditure measure) and agriculture-supportive expenditure (public expenditures that are not specific to agriculture, but which have a strong influence on agricultural sector development)2. The distribution of EFA between agriculture-specific and agriculture-supportive expenditure evolved from being equilibrated in 2006 to being biased towards agriculture-specific expenditure in 2012, which shows that pub lic investments towards agriculture have been specializing through time. Within agriculture-specific expenditure, a major trend was the substantial increase in the share dedicated to payments to producers in the form of fertilizer subsidies from 2006 to 2012. Concomitantly, the share of agriculture-specific expenditure allocated to agricultural research and knowledge transfer activities (training, technical assistance and extension) decreased sharply, and the proportion of spending on marketing and agricultural infrastructures went up. The driving factor behind this expenditure pattern appears to be a change in the main components of World Bank-funded interventions in the agriculture sector following the introduction of the Medium Term Agriculture Sector Investment Plan (METASIP) by the Government of Ghana (GoG) in 2009.

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Bibliographic Details
Main Author: Agricultural Development Economics Division
Format: Brochure, flyer, fact-sheet biblioteca
Language:English
Published: 2014
Online Access:http://www.fao.org/documents/card/en/c/45ec856f-2add-40cc-b2ed-55e21f453563
https://fao-prod.atmire.com/handle/20.500.14283/I4530E
http://www.fao.org/3/a-i4530e.pdf
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