The Ministry of Food and Agriculture (MOFA) sits at the heart of Ghana’s food security, inflation management, rural employment and import substitution agenda. In 2025, expectations were especially high following the launch of the Feed Ghana Programme (FGP)—a flagship intervention intended to reverse declining productivity, reduce food imports, and stabilise prices.
Yet, a closer examination of budget allocations versus actual releases and expenditures per MOFAs 2026 programme-based budget (PBB) estimates reveals a persistent decades old structural fiscal challenge: ambitious policy is never matched by enough cash.
Budgeted Ambition: A Record Allocation on Paper
For the 2025 fiscal year, MOFA was allocated GH¢2.9 billion, reflecting the new government’s renewed emphasis on agriculture as a growth anchor. Of this amount, Government of Ghana (GoG) funding accounted for GH¢1.6 billion (54%), donor funding GH¢1.3 billion (45%), and Internally Generated Funds (IGF) GH¢29.7 million (1%)
The composition of the budget further underscored a development-oriented focus. Goods and Services absorbed GH¢1.1 billion (39%), while Capital Expenditure (CAPEX) accounted for GH¢1.5 billion(53%), signalling intent to invest in productivity-enhancing interventions such as irrigation, mechanisation, post-harvest infrastructure, and livestock development. Compensation of Employees stood at GH¢226.6 million (8%), relatively modest given the scale of operational demands.
The Reality of MOFA Cash Releases: Only 17% by September2025
Despite this big budget allocation, actual releases tell a sobering story. As at September 2025, total releases to MOFA amounted to just GH¢484.3 million, representing 17% of the approved budget.
GoG releases were GH¢268.1 million (17% of GoG allocation), donor releases GH¢210.4 million (16% of Donor allocation), and IGF releases GH¢5.8 million (20% of IGF allocation). This pattern mirrors trends from previous years, where agriculture budgets are approved in full but cash releases remain severely constrained.
Crucially, low releases were most pronounced in CAPEX, undermining the very investments required to deliver medium-term productivity gains.
Expenditure Performance: Use of What Little Arrived
Where funds were released, MOFA demonstrated relatively good expenditure performance. Total expenditure as at September stood at GH¢378.1 million, equivalent to 78% of overall total releases. MOFA utilized 98% of donor releases. IGF expenditure reached 71% of releases, while GoG expenditure stood at 63% of its releases.
Partial Delivery of Inputs
MOFA recorded mixed programme outputs in 2025. Under the Feed Ghana Programme, Government targeted large-scale distribution of improved seeds and fertiliser. However, by mid-year, only 2,000 MT of maize seed, 1,000 MT of rice seed, and 50,000 MT of fertiliser had been distributed – 13% to 20% of target.
Livestock and poultry vaccinations in 2025 were 17.7 million –44% of the target of 40 million.
The story of the Ministries of Fisheries and Aquaculture Development (MOFAD) is no different. By September 2025, GH¢81.4 million (31%) was released out of an approved budget of GH¢264.1 million. Compensation absorbed GH¢26.5 million (76% of budget), while capital expenditure received only GH¢7.0 million(4% of budget), severely limiting programme implementation.
The Ministry of Finance itself had only 28% of its 2025 budget allocation of GH¢3.6 billion released by September 2025.
Budgets Without Cash Are Policy Illusions
MOFA and MOFAD’s 2025 budget performance exposes a familiar fault line in Ghana’s public finance management – ambitious budgets approved on paper, but chronically inadequate cash releases that ultimately slow, weaken, or undermine programme delivery.
MOFA’s budget allocation in 2026 is GH¢1.3 billion, a 54% reduction from the 2025 allocation of GH¢2.9 billion. This adjustment is both necessary and rational. There is little value in approving large budgets with small cash releases.
MOFAD’s 2026 budget is GH¢428 million, a 62% increase over the 2025 figure.
MOFA and MOFAD should receive at least 75% of their approved 2026 budget to deliver on their programmes. Without predictable and timely releases, even a leaner and more realistic budget will fail to deliver results.
Conclusion
Food security, improved agricultural productivity, and stable food prices are macroeconomic imperatives, not merely sectoral objectives. They directly affect inflation, exchange rate stability, household welfare, and overall economic confidence.
Ensuring adequate and timely financing for agriculture and the Feed Ghana Programme is therefore a macroeconomic necessity.
@GbanaIssaka
The writer is a Development Economist, Chartered Accountant and Consultant
