Ghana's 10 percent agriculture expenditure saga: Why reported expenditure shares are not what they seem
Benin, Samuel · Tiburcio, Ernesto
Jun 2019 · Intl Food Policy Res Inst
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10
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About this ebook
This note first discusses the differences between the general government sector and the public corporations sector, and then presents the rationale for when to add and separate expenditures in the two sectors in the accounting of government expenditures. It then presents revised estimates for Ghana on the share of GAE in GTE from 2001 to 2015, which exclude expenditures of Cocobod and expenditures on nonagricultural functions from GAE, in accordance with the official AU guidance note.2 The formula for this is given by GAE*100/GTE. It proposes another formula for obtaining parallel estimates if the Cocobod expenditures are included in the calcu-lations, as attempted in the agPER studies. This revised formula adds the expenditures of all of Ghana’s public boards and corporations (PBCs) to GTE in the denominator to make it comparable to adding expenditures of Cocobod to GAE in the numerator. The new formula therefore would be (GAE+PBCAE) *100/(GTE+PBCTE), where PBCAE denotes PBCs’ agriculture expenditure and PBCTE denotes PBCs’ total expenditure. The data used are from the two agPERs (MOFA 2013; 2017) and annual reports on the accounts and statements of the government (CAGD 2018), public boards, corporations, and other statutory institutions (AG 2018), and the Co-cobod (Ghana Cocoa Board 2018).
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