The Minister of Finance, Mr. Kwame Peprah has announced the governments budget statement and economic policy for the 1996 Financial year. The focus of the governments financial programme is to improve the performance of the agricultural sector, continue to increase access to basic health service, improve road network to enhance accessibility to food growing areas, and create avenues for growth by intensifying interventions for poverty alleviation.
Presenting the budget in Parliament, Mr Peprah said the overall GDP growth is projected at five percent, agriculture, four point five per cent whilst the services sector is programmed to achieve a growth of five point nine percent, with the industrial sector growing at three per cent. The total revenue and grants have been estimated at two point three trillion cedis and total revenues estimated at two point one trillion cedis, with a projection for a budget surplus of 158 point seven billion cedis. Under the 1996 budget, the Ministry of Food and Agriculture has been allocated seven point eight billion cedis with the aim of stimulating the private sector.
This allocation is geared towards providing services to small holder farmers community projects and the conservation of the environment thereby raising the productivity of farmers and fisherman and enhancing their incomes and thus contribute to the reduction of poverty in the rural areas. The government will also provide the Ministry three point five billion cedis as a guarantee to enable the release of about 79 billion cedis of donor support for projects in extension, research, small and medium-scale irrigation, as well as water resources management. To stem the problem of post-harvest losses, special attention will be paid to the provision of agricultural infrastructure such as roads whilst the private sector will be encouraged to establish agro processing and storage facilities.
The government is also to set up a fund to promote diversification of agriculture with export potential. It is collaborating with the banks to develop a scheme to encourage integrated nucleus farming enterprises that will incorporate production and agro-processing, in addition to the promotion of large-scale agricultural estates. The achieve the governments aim of increase access to health service, the government with the help of donors, will spend 103 point five billion cedis on the health sector. The money will enable the 240 health centres, 28 government and mission hospitals to be re-equipped. During the year, a five programme for providing Diagnostic Imaging Equipment to seventy hospitals will begin. Community health training schools at Winneba, HO, Oda and Tamale, as well as, Rural Health Training Institute at Kintampo will be completed. On diseases control, efforts will focus on the eradication of paralytic poliomyelitis and guinea-worm, and anew programme to control diabetes, hypertension, sickle-cell and cancers will be established, whilst the existing programmes on AIDS and other sexually transmitted diseases and tuberculosis strengthened.
For roads and highways, 411 billion cedis has been allocated under the road programme, designed and preliminary works have been completed for eight major projects and work is expected to start this year. They are Awaso-Bibiani-Bambia Number One, Tema-Akonsombo, Bawdie-Asankragwa-Enchi, and Odumase-Oterkpoh roads. The rest are Sogakope-Ho-Fume road, Kpando-Worawora-Dambai and Inchaban Junction-Sekondi roads as well as Hohoe, Kpando, Ho and Peki town roads. Under the periodic maintenance programme, 55 kilometres of trunk roads, will be re-gravelled, resealed, and rehabilitated. This year, four thousand kilometres of feeder roads will either be rehabilitated, regravelled or resealed. In addition, one thousand 200 culverts will be constructed and 50 kilometres of the Ekye-Amanfron to Amankwakrom roads will be tarred, and the installation of 39 steel bridges will begin.
Under the Urban Transport Project, roads in deprived areas of Accra like, Sabon-Zongo, Fadama, Russia, Sukura, Chorkor, Teshie and Nungua will be constructed whilst, the redevelopment of the Kejetia Round-About into a pedestrian walkway will begin. There will also begin in the year preliminary works on the Kwame Nkrumah Circle-Achimota Road project. With regard to the 26 billion cedi Kanda Highway bridge, work has already begun. On petroleum products pricing and related issues, the government has decided that the procurement of crude oil, and finished products needed to make up for the shortfall in the Tema Oil Refinery capacity will now be through competitive tendering involving the oil marketing companies and the Ghana National Petroleum Corporation. It is expected that as the tender process occurs, its result will establish the costs of the crude oil that is imported, all other costs including government tax levies will then be seen within the price.
The maximum profit margins of the oil marketing companies will be set according to a formula, and will be under constant review by the Sector Ministry to ensure that there are no undue price hikes. As far as petroleum taxes are concerned, the ex-pump prices are therefore not expected to increase by more than 24 percent, thus, for premium petrol , this will mean an increase of 125 cedis per litre. On Premix Fuel, a new formula has been developed for sale to fishermen at a lower cost. The government hopes that this new dispensation will not be abused.
