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Agric, others will be key in next budget

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The Minister of Finance and Economic Planning, Dr Kwabena Duffour, has said agriculture, water and sanitation and infrastructural development, including massive investments in roads and railways, will form the base of next year's budget. He said this in Accra yesterday after appending his signature to six loan agreements with the World Bank that would enable the government to generate employment and spur economic growth rate into the region of seven per cent. The growth rate in the total value of goods and services produced within the economy (Gross Domestic Product) is expected to reach about 6.5 per cent and with a lot of debts and arrears settled and possible inflows from crude oil, the economy could grow at the rate of seven per cent next year. Dr Duffour said the government would not relent in looking for concessionary loans from sources such as the International Development Association (IDA) to finance important and far-reaching development projects. The loan agreements are valued at $313.3 million and include two additional project financing for the e-Ghana project and the Ghana Energy Development and Access Project. The rest arc the social opportunities financing, $88.6 million; sustainable rural water and sanitation project, $69 million; agriculture financing, $25 million; and $10 million for natural resources and environmental governance project. Dr Duffour Signed on behalf of the country, while the Country Director of the World Bank, Mr Ishac Diwan, initialled on behalf of the World Bank, which approved the credit facilities in June this year. The concessionary loan is without interest, but has a one-off service charge and comes with a 10-year grace and 25 years' repayment periods. The Minister said social opportunities financing would help improve targeting in social protection spending; increase access to employment and cash-earning, opportunities during agricultural off seasons. He said part of that fond would also go into improving infrastructure such as roads and schools in 40 deprived communities within the targeted districts across the country, adding that the six projects underscored the government's desire to develop all sectors of the economy systemically. The finance minister said in the wake of the country's poor showing at drawing down on approved World Bank financing, the ministries involved should work hard for the timely disbursement of the loans. He called on his colleague Ministers to put in their best to avoid delays in the implementation of the projects in order to meet the development goals of the country. The signing of the agreements was witnessed by Mr Yieleh Chireh, the Minister of Local Government, and Ms Sherry Ayittey, the Minister of Environment, Science and Technology. Source: Daily Graphic

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