Government focuses on infrastructural development

Story:Boahene Asamoah & Samuel Doe Ablordeppey

THE government is to embark on aggressive infrastructural projects, mainly on water, roads and energy, to bring real improvements in those sectors.
An estimated GH¢819.71 million will be spent on those three areas alone to facilitate the much needed accelerated growth.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, announced this in Accra when he presented the 2008 Budget Statement and Economic Policy of the government to Parliament yesterday.
“The focus of the 2008 Budget will be 'Growth through massive Infrastructure Development'. The areas identified are roads, water and energy,” the minister said.
The budget is targeting a real Gross Domestic Product (GDP) growth of at least 7.0 per cent; inflation rate of between 6.0 and 8.0 per cent; an average inflation of 7.0 per cent and an accumulation of international reserves equivalent to at least three months of import cover.
The budget would also achieve an overall budget deficit of 4.0 per cent of GDP.
He said to support the country’s development blueprint, the Growth and Poverty Reduction (GPRS II) steps would be taken to integrate rural and urban economies and ensure lower transport costs through the provision of safe and reliable road infrastructure and services.
In that regard, the Finance Minister said the government had allocated an estimated GH¢199.2 million to fund all 166 districts to construct and tar 15 kilometres of roads in each district next year.
He said the criteria for selection of the roads would be developed by the end of the year to ensure that the project started next year.
Mr Baah-Wiredu said banks and financial institutions would be called upon to intermediate in financing the projects.
An amount of $200 million from the sovereign bond proceeds would be spent in the road sector, including the dualisation of the Accra-Kumasi highway, while $90 million of that proceeds would be devoted to building the western corridor of the railway network.
On the improvement of water infrastructure, the Finance Minister said an estimated GH¢7.47 million would be spent on providing good drinking water for five communities in each of the 166 districts.
Improving the energy sector would also engage the attention of the government next year during which major medium and long-term measures would be adopted to increase the energy generation and distribution with a $460-million funding from the sovereign bond proceeds.
The projects would include the firing of the Osagyefo Power Barge at Effasu, the execution of the Bui Hydro Electric Power project, as well as the Hemang and Awisam Hydro Electricity Power projects on the Pra River, Mr Baah-Wiredu announced.
He added that other hydro-electric power projects to come on stream would include that on Ankobra River; the Tanoso Hydro Electric Power on the Tano River; and the Juale Hydro River on Oti River. An amount of ??????? will be spent in the energy sector with focus on the transmission and distribution network.
He said the government would partner the private sector through Public Private Partnership (PPP) to achieve those goals.
On the whole, the budget estimates total receipts for the country for the 2008 fiscal year at GH¢7.11 billion, equivalent to 43.6 per cent of GDP, with domestic revenue, consisting of tax and non-tax revenue, projected at GH¢4.76 billion.
On the other hand, out of the estimated GH¢7.11 billion of total payments, GH¢1.728 billion or 10.6 per cent of GDP, has been earmarked for statutory payments, while GH¢5.378 billion will be for discretionary payments.