The government spent GH¢ 1.5 billion on SDG 1 for the delivery of programs at the national and district levels last year. According to the Ministry of Finance (MoF), this was higher than the amount allocated for the same goal in 2019. The first Sustainable Development Goal (SDG), “No Poverty”, seeks to end poverty in all its forms everywhere by 2030.
According to the 2020 SDGs Budget Report, the government of Ghana was the main source of funding for Goal 1 of the SDGs in 2020. As such, it contributed GH¢ 786.2 million towards SDG 1 in 2020.
Moreover, other sources of funding for this goal in 2020 were GH¢ 640.4 million from the Annual Budget Fund Amount (ABFA) and GH¢ 46.9 million from the DP. The rest of the funding sources included GH¢ 6 million from IGF and GH¢ 48 million from Statutory Funds.
Also, the MoF indicated that Target 1.3 of Goal 1 received the highest funding of GH¢ 725.5 million. Unsurprisingly, the government was the main source of funding for this target. This target requires the implementation of nationally appropriate social protection systems and measures for all, including floors. Per Target 1.3, the country must achieve substantial coverage of the poor and the vulnerable by 2030.
Furthermore, the report reveals that at the Ministries, Departments, and Agencies (MDAs) level, the total approved budget was GH¢ 1.4 billion. However, at the Metropolitan, Municipal, and District Assemblies (MMDAs) level, the total funding was GH¢ 78.3 million. The MoF stated that Statutory Funds were the main source of funding for the MDAs & MMDAs with an amount of GH¢ 48 million.
Ideally, the government seeks to eradicate poverty in both the rural and urban areas. Therefore, all the regions received funds to help in the fight against poverty last year. However, the Eastern, Ashanti, and Western were the top three regions that received the highest funds under SDG 1. The Eastern, Ashanti, and Western received GH¢ 21.8 million, GH¢ 11.4 million, and GH¢ 6.1 million respectively in 2020.
The MoF indicated that the 2020 SDGs Budget Report is a continuation of the government’s efforts to evaluate and define the funding gap for the SDGs. This will help establish a financing mechanism that enables the country to fund and execute the Global Goals.
Furthermore, the MoF stated that the Report seeks to provide data that will enable the Government and its partners to monitor the progress on the various goals. More importantly, it will help compare progress against the investments to ascertain the efficient use of all financial resources.
The transparent reporting on government spending on the SDGs, according to the MoF, provides Partners the opportunity to determine which goals require more attention. Also, it gives the Government the opportunity to adjust its allocations to ensure the equitable distribution of resources across Municipalities and Districts.
Measurement of poverty
The World Bank uses a monetary measure, the poverty line, to delineate the poor from the non-poor. Currently, the World Bank identifies people living on less than $1.90 a day as living in extreme poverty. Ghana has been able to reduce the level of poverty drastically over the years. However, the COVID-19 pandemic threatens to dissipate the gains realized in poverty eradication all these years. Ghana met the Millennium Development Goal 1 (MDG 1) by halving poverty in 2015.
However, the first Report on Multidimensional Poverty Index (MPI) in 2020 revealed that 45.6 % of Ghanaians were multi-dimensionally poor. The MPI report shows that 64.6% of people in rural areas were more likely to be multi-dimensionally poor. This was higher than their urban counterparts of 27%.
Also, children under 15 years were more prone to multidimensional poverty than those above 15 years. According to the report, a total of 19.3% (6 million Ghanaians) of children under 15 years were poor. The MPI captures people’s deprivation across 12 indicators under health, education, and living standards.