SOCIAL PROTECTION AND SOCIAL WELFARE
SOCIAL PROTECTION AND SOCIAL WELFARE Budget Briefs for 2012
KEY MESSAGES ●● In 2012, the budget allocated to the Ministry of Employment and Social Welfare (MESW) increased by 8.67% over the 2011 allocation whereas that of Ministry of Women and Children (MOWAC) increased by 17.62%. Together, both ministries received 0.28% of the total planned government expenditure for 2012. ●● Although the increase is positive, when compared to the number of programmes to be implemented in 2012, it may be insufficient and has a tendency to affect the quality of the programmes. 2.0 COMPOSITION OF THE CHILD AND SOCIAL PROTECTION BUDGET Child protection basically deals with the various measures and structures which have being designed to cater for the welfare of children in order to prevent and respond to every form of abuse, neglect, exploitation and violent acts perpetuated against children. Social Protection is defined as the set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labour markets, diminishing people’s exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income. Main components of the budgetary allocation to each ministry include the Government of Ghana funds, Internally General Funds and Donor Funds. 2.1 Sources of funding 2.1.1 Discretionary The Ministry of Employment and Social Welfare in 2012 has been allocated an amount of GH¢37.9 million as compared to GH¢34.9 million, which was allocated in 2011. This allocation increase of about GH¢3million represents an 8.67% increase from the 2011 budgetary allocation. Similarly, for the year 2012, an amount of about GH¢15.6million has been allocated to the Ministry of Women and Children representing a 17.6% increase from the 2011 allocation of GH¢13.3million.Figures 1a, and 1b, show the various components of the budgetary allocation to the Ministry of Employment and Social Welfare as well as the Ministry of Women and Children.
Budgetary Allocation
Figure 1: Budgetary allocation from discretionary sources to the Ministry of Employment and Social Welfare
25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0
2008
GOG IGF
2010
2011
11,923,161
11,037,461
2009
16,025,202
16,322,382
20,792,594
2,187,130
3,035,224
3,497,192
4,393,470
3,981,280
SIP
2012
12,000,000
DONOR HIPC
5,200,000
MDRI
2,000,000
1,324,297
1,289,793
17,500,000
12,000,000
2,186,010
ABFA
3,154,152
10,000,000 Source: Author generated from 2008 to 2011 budget statements Source: Author generated from 2008 to 2011 budget statements
SOCIAL PROTECTION AND SOCIAL WELFARE
Figure 2: Budgetary allocation from discretionary sources to the Ministry of Women and Children (MOWAC)
Source: Author generated from 2008 to 2011 budget statements
2.2 Allocation by programme Some programmes on child and social protection which have received budgetary allocation include the following programmes; ●● Livelihood Empowerment against Poverty (LEAP): In 2011, the budgetary allocation for the implementation of activities under the LEAP programme was GH¢12 million. The number of beneficiaries expected to benefit from the budgetary allocation for LEAP in 2011 was 65,000 households. According to the 2012 budget statement, 60,000 households were provided with cash grants (Page 157, 2012 Budget Statement). As at mid 2011, the number of LEAP beneficiaries had increased to 44,784 households (Page 243, 2012 Budget Statement). In 2012, the budgetary allocation has decreased by 16.7% to GH¢10million. The impact of this reduction in the budgetary allocation is likely to dramatically reduce the number of beneficiaries who receive the LEAP grant. ●● Ghana School Feeding Programme: In 2012, the amount allocated for the implementation of the School Feeding Programme is GH¢60million. In 2011, the amount allocated was GH¢50 million. This represents a 20% increase from 2011. ●● Basic Education: Free exercise books, school uniforms, capitation grant and BECE subsidy are major interventions that directly concern children. Budgetary allocation for these interventions in 2011 totalled GH¢46 million. In 2012, this amount has been dramatically increased to GH¢89,853,840 representing a significant 95% increase from 2011. 2.3 Child and Social Protection share of total poverty reduction expenditure The budgetary allocation to MESW and MOWAC in 2012 represents 1.12% of the total budget allocated to the Social Sector. The Social Sector comprises of the Ministry of Education, Ministry of Youth and Sports, Ministry of Health, Ministry of Local Government and Rural Development in addition to MESW and MOWAC. In 2010 and 2011, the percentage of the total social sector budget to both ministries was 1.49% and 1.47% respectively. Similarly in 2011, 30.5% (GH¢108,000,000) of the social intervention programmes budget (GH¢354,206,000) was allocated for the implementation of LEAP, Ghana School Feeding programme, Education programs (specifically Capitation, BECE Subsidy, School Uniforms and free exercise books). In 2012, the social interventions programmes have been classified according to the implementing ministries under the Priority Interventions Programme. In total, the above programmes represent 16.4% (GH¢187,853,840) of the priority interventions programmes budget (GH¢1,145,865,991). It is important to note the addition of the removal of schools under trees programme with a budget line of GH¢28million to the social interventions programme under education in 2012.
SOCIAL PROTECTION AND SOCIAL WELFARE
2.4 Child and Social Protection budget as a share of GDP and total government expenditure The budgetary allocation of the two ministries – MESW and MOWAC - directly concerned with social protection is less than 1% of the total gross domestic product of Ghana (Figure 3). Together, the highest percentage allocation attained is 0.20% of GDP in 2009 as shown in Fig. 3. Allocation as a percentage of GDP fell even lower in 2012 to about 0.08%. Although there has been some consistency in the allocation over the last two years, the 2012 reduction is a marked departure from the usual trend and is a negative development. Ghana’s expenditure on social protection has been relatively low over the past five years and with the 2012 projected expenditure even lower than normal, the tendency of the quality of social intervention programmes being poor is very high which defeats the aim of the interventions. Figure 3: Child and Social Protection Budget as a percentage of GDP and government total expenditure
Source: Author generated from 2008 to 2011 budget statements
The allocation to MESW and MOWAC as a percentage of total government expenditure has a similar pattern to the GDP percentages as seen in Fig 3. Allocation which soared in 2009 during the change in the political climate of Ghana leveled off at 0.38% of total planned government expenditure in 2010 and 2011. However in 2012, the allocation has further reduced by 0.01 to 0.28%. Although the total expenditure increases yearly, the allocations for social protection do not reflect this increase which raises questions about the government’s commitment to ensuring social protection for the vulnerable and less privileged Ghanaian citizen. 3.0 ASSESSMENT OF POLICY PROGRAMMES/INITIATIVES A variety of programmes which deal with the welfare of children and social protection issues have been designed and are currently being implemented. The programmes listed below particularly target the poorest or most vulnerable of the Ghanaian population; ●● Livelihood Empowerment Against Poverty (LEAP) Budgetary allocation for the implementation of LEAP in 2011 was GH¢12 million. In 2012, the amount has been reduced to GH¢10 million. From the 2012 budget statement, the government intends to carry out a beneficiary impact assessment of its social protection programmes particularly the LEAP. It also intends to develop a comprehensive national social development policy to guide all actors in the social protection/development field. With the reduced budgetary allocation for 2012, carrying out this assessment as well as expanding the number of beneficiaries may be a challenge to the implementing agency. Key areas of the programme that need attention are the targeting framework as well as the regularity of financing, with respect to the process of disbursement from the Ministry of Finance and Planning to MESW, and the efficiency of the payment mechanism to the beneficiaries.
SOCIAL PROTECTION AND SOCIAL WELFARE
●● Cocoa Scholarship Scheme The scholarship scheme offers financial assistance for children and wards of cocoa farmers. This scheme received GH¢5 million and GH¢2.4 million in 2010 and 2011 crop season representing a reduction of over 50% in the budgetary allocation. For the 2011/2012 fiscal year, GH¢2million has been allocated as opposed to the GH¢2.4 million in 2010/2011. With the further reduction in the amount allocated for this programme, it is evident that the numbers of children to benefit from this scheme will also be reduced, a negative achievement. ●● Cocoa Certification and Child Labour Issues In 2011 the National Programme for the Elimination of Worst Forms of Child Labour in Cocoa (NPECLC) was supported with an amount of GH¢4.9 million from COCOBOD. In 2012, the amount decreased to GH¢2 million. Government seeks to eliminate the worst forms of child labour, hence the programme NPECLC. Budgetary allocation for the implementation of this programme has been reduced by more than 50%, a significant cut which has a high tendency to affect the quality of the implementation of the programme. ●● Ghana School Feeding Programme In 2011, the Ghana School Feeding Programme under the Ministry of Local Government and Rural Development received a budgetary allocation of GH¢50 million. The number of children benefitting from the programme rose to 1,040,000 children in 2011 up from 720,000 pupils in 2010. With the increase in the budget, the government intends to expand coverage to about 500,000 additional pupils bringing the total number of beneficiaries to about 1,500,000 children as well as develop a National School Feeding Policy. However, analysis done by World Bank suggests that the Ghana School Feeding Programme which is meant to benefit the poor is rather benefitting more of the non-poor. Thus, there is a need for a thorough review of the programme to correct the negative trend permeating the programme. ●● Social Interventions for Basic Education In 2011, programmes under basic education received budgetary allocation to the tune of GH¢46 million. The programmes include issuing of free exercise books, school uniforms, capitation grant and BECE subsidy. A new programme, the removal of ‘School under Trees’ has been added to the basic education portfolio in 2012. With a significant 95% increase (GH¢89 million) from the 2011 budgetary allocation and the introduction of the removal of ‘Schools under Trees’ programme, school enrolment and retention is likely to be impacted positively. 4.0 GAPS AND OPPORTUNITIES Although the budgetary allocations to MESW and MOWAC have increased slightly, some major social protection programmes have received budgetary cuts which may negatively affect the programmes. Some of the gaps identified are as follows; ●● Reduction in the budgetary allocation of LEAP by 16.7% ●● Over 50% reduction in the Cocoa Scholarship Scheme allocation ●● Reduction in allocation for the support of NPECLC by about 17% ●● The budget statement is silent on the Births and Deaths Registry Some opportunities present in the budget include the increase in the various existing programmes under Basic Education as well as the introduction of the removal of ‘Schools under Trees’ programme. Recommendations made in the 2011 UNICEF-ISODEC budget analysis for GoG to set aside a percentage of the SADA and CEDECOM budgetary allocations for easy accessibility by women and children has not been evidenced in the 2012 budget. However, there has been an increase in the allocation to SADA and CEDECOM. Recommendations made to increase LEAP beneficiaries have not reflected in the budget due to the absence of a specified target number of beneficiaries in 2012. In addition, the programme also experienced budgetary cuts. RECOMMENDATION For the successful implementation of social protection programmes such as LEAP, Cocoa Scholarship Scheme and NPECLC programmes, the budget must complement the various programmes to be carried out and hence, the government should avoid future budgetary cuts to the MOWAC and MESW. Rather, there should be a significant increase in the budgetary allocations to these ministries and social protection programmes to ensure that the sector is sufficiently mobilized to perform adequately.
KEY MESSAGES ●● In 2012, the budget allocated to the Ministry of Employment and Social Welfare (MESW) increased by 8.67% over the 2011 allocation whereas that of Ministry of Women and Children (MOWAC) increased by 17.62%. Together, both ministries received 0.28% of the total planned government expenditure for 2012. ●● Although the increase is positive, when compared to the number of programmes to be implemented in 2012, it may be insufficient and has a tendency to affect the quality of the programmes. 2.0 COMPOSITION OF THE CHILD AND SOCIAL PROTECTION BUDGET Child protection basically deals with the various measures and structures which have being designed to cater for the welfare of children in order to prevent and respond to every form of abuse, neglect, exploitation and violent acts perpetuated against children. Social Protection is defined as the set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labour markets, diminishing people’s exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income. Main components of the budgetary allocation to each ministry include the Government of Ghana funds, Internally General Funds and Donor Funds. 2.1 Sources of funding 2.1.1 Discretionary The Ministry of Employment and Social Welfare in 2012 has been allocated an amount of GH¢37.9 million as compared to GH¢34.9 million, which was allocated in 2011. This allocation increase of about GH¢3million represents an 8.67% increase from the 2011 budgetary allocation. Similarly, for the year 2012, an amount of about GH¢15.6million has been allocated to the Ministry of Women and Children representing a 17.6% increase from the 2011 allocation of GH¢13.3million.Figures 1a, and 1b, show the various components of the budgetary allocation to the Ministry of Employment and Social Welfare as well as the Ministry of Women and Children.
Budgetary Allocation
Figure 1: Budgetary allocation from discretionary sources to the Ministry of Employment and Social Welfare
25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0
2008
GOG IGF
2010
2011
11,923,161
11,037,461
2009
16,025,202
16,322,382
20,792,594
2,187,130
3,035,224
3,497,192
4,393,470
3,981,280
SIP
2012
12,000,000
DONOR HIPC
5,200,000
MDRI
2,000,000
1,324,297
1,289,793
17,500,000
12,000,000
2,186,010
ABFA
3,154,152
10,000,000 Source: Author generated from 2008 to 2011 budget statements Source: Author generated from 2008 to 2011 budget statements
SOCIAL PROTECTION AND SOCIAL WELFARE
Figure 2: Budgetary allocation from discretionary sources to the Ministry of Women and Children (MOWAC)
Source: Author generated from 2008 to 2011 budget statements
2.2 Allocation by programme Some programmes on child and social protection which have received budgetary allocation include the following programmes; ●● Livelihood Empowerment against Poverty (LEAP): In 2011, the budgetary allocation for the implementation of activities under the LEAP programme was GH¢12 million. The number of beneficiaries expected to benefit from the budgetary allocation for LEAP in 2011 was 65,000 households. According to the 2012 budget statement, 60,000 households were provided with cash grants (Page 157, 2012 Budget Statement). As at mid 2011, the number of LEAP beneficiaries had increased to 44,784 households (Page 243, 2012 Budget Statement). In 2012, the budgetary allocation has decreased by 16.7% to GH¢10million. The impact of this reduction in the budgetary allocation is likely to dramatically reduce the number of beneficiaries who receive the LEAP grant. ●● Ghana School Feeding Programme: In 2012, the amount allocated for the implementation of the School Feeding Programme is GH¢60million. In 2011, the amount allocated was GH¢50 million. This represents a 20% increase from 2011. ●● Basic Education: Free exercise books, school uniforms, capitation grant and BECE subsidy are major interventions that directly concern children. Budgetary allocation for these interventions in 2011 totalled GH¢46 million. In 2012, this amount has been dramatically increased to GH¢89,853,840 representing a significant 95% increase from 2011. 2.3 Child and Social Protection share of total poverty reduction expenditure The budgetary allocation to MESW and MOWAC in 2012 represents 1.12% of the total budget allocated to the Social Sector. The Social Sector comprises of the Ministry of Education, Ministry of Youth and Sports, Ministry of Health, Ministry of Local Government and Rural Development in addition to MESW and MOWAC. In 2010 and 2011, the percentage of the total social sector budget to both ministries was 1.49% and 1.47% respectively. Similarly in 2011, 30.5% (GH¢108,000,000) of the social intervention programmes budget (GH¢354,206,000) was allocated for the implementation of LEAP, Ghana School Feeding programme, Education programs (specifically Capitation, BECE Subsidy, School Uniforms and free exercise books). In 2012, the social interventions programmes have been classified according to the implementing ministries under the Priority Interventions Programme. In total, the above programmes represent 16.4% (GH¢187,853,840) of the priority interventions programmes budget (GH¢1,145,865,991). It is important to note the addition of the removal of schools under trees programme with a budget line of GH¢28million to the social interventions programme under education in 2012.
SOCIAL PROTECTION AND SOCIAL WELFARE
2.4 Child and Social Protection budget as a share of GDP and total government expenditure The budgetary allocation of the two ministries – MESW and MOWAC - directly concerned with social protection is less than 1% of the total gross domestic product of Ghana (Figure 3). Together, the highest percentage allocation attained is 0.20% of GDP in 2009 as shown in Fig. 3. Allocation as a percentage of GDP fell even lower in 2012 to about 0.08%. Although there has been some consistency in the allocation over the last two years, the 2012 reduction is a marked departure from the usual trend and is a negative development. Ghana’s expenditure on social protection has been relatively low over the past five years and with the 2012 projected expenditure even lower than normal, the tendency of the quality of social intervention programmes being poor is very high which defeats the aim of the interventions. Figure 3: Child and Social Protection Budget as a percentage of GDP and government total expenditure
Source: Author generated from 2008 to 2011 budget statements
The allocation to MESW and MOWAC as a percentage of total government expenditure has a similar pattern to the GDP percentages as seen in Fig 3. Allocation which soared in 2009 during the change in the political climate of Ghana leveled off at 0.38% of total planned government expenditure in 2010 and 2011. However in 2012, the allocation has further reduced by 0.01 to 0.28%. Although the total expenditure increases yearly, the allocations for social protection do not reflect this increase which raises questions about the government’s commitment to ensuring social protection for the vulnerable and less privileged Ghanaian citizen. 3.0 ASSESSMENT OF POLICY PROGRAMMES/INITIATIVES A variety of programmes which deal with the welfare of children and social protection issues have been designed and are currently being implemented. The programmes listed below particularly target the poorest or most vulnerable of the Ghanaian population; ●● Livelihood Empowerment Against Poverty (LEAP) Budgetary allocation for the implementation of LEAP in 2011 was GH¢12 million. In 2012, the amount has been reduced to GH¢10 million. From the 2012 budget statement, the government intends to carry out a beneficiary impact assessment of its social protection programmes particularly the LEAP. It also intends to develop a comprehensive national social development policy to guide all actors in the social protection/development field. With the reduced budgetary allocation for 2012, carrying out this assessment as well as expanding the number of beneficiaries may be a challenge to the implementing agency. Key areas of the programme that need attention are the targeting framework as well as the regularity of financing, with respect to the process of disbursement from the Ministry of Finance and Planning to MESW, and the efficiency of the payment mechanism to the beneficiaries.
SOCIAL PROTECTION AND SOCIAL WELFARE
●● Cocoa Scholarship Scheme The scholarship scheme offers financial assistance for children and wards of cocoa farmers. This scheme received GH¢5 million and GH¢2.4 million in 2010 and 2011 crop season representing a reduction of over 50% in the budgetary allocation. For the 2011/2012 fiscal year, GH¢2million has been allocated as opposed to the GH¢2.4 million in 2010/2011. With the further reduction in the amount allocated for this programme, it is evident that the numbers of children to benefit from this scheme will also be reduced, a negative achievement. ●● Cocoa Certification and Child Labour Issues In 2011 the National Programme for the Elimination of Worst Forms of Child Labour in Cocoa (NPECLC) was supported with an amount of GH¢4.9 million from COCOBOD. In 2012, the amount decreased to GH¢2 million. Government seeks to eliminate the worst forms of child labour, hence the programme NPECLC. Budgetary allocation for the implementation of this programme has been reduced by more than 50%, a significant cut which has a high tendency to affect the quality of the implementation of the programme. ●● Ghana School Feeding Programme In 2011, the Ghana School Feeding Programme under the Ministry of Local Government and Rural Development received a budgetary allocation of GH¢50 million. The number of children benefitting from the programme rose to 1,040,000 children in 2011 up from 720,000 pupils in 2010. With the increase in the budget, the government intends to expand coverage to about 500,000 additional pupils bringing the total number of beneficiaries to about 1,500,000 children as well as develop a National School Feeding Policy. However, analysis done by World Bank suggests that the Ghana School Feeding Programme which is meant to benefit the poor is rather benefitting more of the non-poor. Thus, there is a need for a thorough review of the programme to correct the negative trend permeating the programme. ●● Social Interventions for Basic Education In 2011, programmes under basic education received budgetary allocation to the tune of GH¢46 million. The programmes include issuing of free exercise books, school uniforms, capitation grant and BECE subsidy. A new programme, the removal of ‘School under Trees’ has been added to the basic education portfolio in 2012. With a significant 95% increase (GH¢89 million) from the 2011 budgetary allocation and the introduction of the removal of ‘Schools under Trees’ programme, school enrolment and retention is likely to be impacted positively. 4.0 GAPS AND OPPORTUNITIES Although the budgetary allocations to MESW and MOWAC have increased slightly, some major social protection programmes have received budgetary cuts which may negatively affect the programmes. Some of the gaps identified are as follows; ●● Reduction in the budgetary allocation of LEAP by 16.7% ●● Over 50% reduction in the Cocoa Scholarship Scheme allocation ●● Reduction in allocation for the support of NPECLC by about 17% ●● The budget statement is silent on the Births and Deaths Registry Some opportunities present in the budget include the increase in the various existing programmes under Basic Education as well as the introduction of the removal of ‘Schools under Trees’ programme. Recommendations made in the 2011 UNICEF-ISODEC budget analysis for GoG to set aside a percentage of the SADA and CEDECOM budgetary allocations for easy accessibility by women and children has not been evidenced in the 2012 budget. However, there has been an increase in the allocation to SADA and CEDECOM. Recommendations made to increase LEAP beneficiaries have not reflected in the budget due to the absence of a specified target number of beneficiaries in 2012. In addition, the programme also experienced budgetary cuts. RECOMMENDATION For the successful implementation of social protection programmes such as LEAP, Cocoa Scholarship Scheme and NPECLC programmes, the budget must complement the various programmes to be carried out and hence, the government should avoid future budgetary cuts to the MOWAC and MESW. Rather, there should be a significant increase in the budgetary allocations to these ministries and social protection programmes to ensure that the sector is sufficiently mobilized to perform adequately.
