BUDGET sees 7 pct growth in 2008

Accra, Nov. 15, GNA - Government's macroeconomic framework for the year 2008 has projected a GDP growth rate of 7.0 per cent and an annual inflation rate of six per cent to eight per cent.

Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, who announced this to Parliament on Thursday, said the prospects for economic growth were bright, especially with the anticipated massive injection of capital for infrastructure development in the energy, road and rail sectors.

He said it was the hope of the Government that the injection would enhance the opportunity for industry to expand and generate employment and ultimately improve the living standards of the people. Mr Baah-Wiredu said in the 2008 financial year, cocoa was expected to contribute to increase export earnings with an output of about 650,000 tonnes.

He said the Ghana Cocoa Board secured an offshore syndicated loan facility of US$900 million, the biggest in the history of the cocoa industry that would amply cover cocoa purchases for the 2007/2008 crop season.

"Government together with COCOBOD has also secured a US$190.0 million medium term loan facility for infrastructural development and cocoa development initiatives.

"This is an indication of the trust the international community reposes in the economy."

In line with Growth and Poverty-Reduction Strategy (GPRS) II, the Minister said the Government's priorities for the 2008 Budget would focus on facilitating growth and reducing poverty through major infrastructural development, which would be carried out through funds generated from the bond market.

Budgetary allocations, he said, had been designed to reflect and reinforce Government's commitment to this objective. The key projects, Mr Baah-Wiredu said, would be turning the Accra-Kumasi road in a dual carriageway and the rehabilitation of the Takoradi; Kumasi and Tamale airports. Outstanding projects in the energy sector would be completed.

On the Ghana 2008 African Cup of Nations, he said the Government was determined to deliver an excellent programme noting that three out of the four stadiums had already been completed and the remaining one was expected to be completed by the end of November 2007. "It is our expectation that the tournament will have a positive impact on our economy, given the large number of visitors expected in the country for this event.

"We, therefore, anticipate a high degree of vibrancy in the tourism industry, not only with the hosting of Ghana 2008, but also with the hosting of the UNCTAD Conference in mid-October."

He said based on assurances received from the technical experts in respect of the capabilities of the Black Stars, the country was confident that it would win the African Cup of Nations next year. The Minister said the Government's health policy for the 2008 fiscal year would witness a shift towards placing stronger emphasis on preventive rather than curative health.

Another area of focus, he said, would be regenerative health through adjustments and changes in the lifestyles of Ghanaians. Mr Baah-Wiredu said the implementation of the new education reforms would be scaled up and also to complete the Model Schools Programme.