GRi In Parliament 05-01-99

The country's overall fiscal deficit for the second consecutive year dropped from 8.6 per cent of GDP in 1997 to 6.3 per cent last year, Mr Kwame Peprah, Minister of Finance said today.

The domestic primary balance was equivalent to 3.8 per cent of GDP as compared with 3.4 per cent in the preceding year.

Presenting the 1999 budget and financial policy statement in Parliament today, Mr Peprah said total revenue and grants amounted to 3,338.4 billion cedis while expenditures came to 4,383.5 billion cedis.

He said total tax revenue at 2,728.5 billion was 3.7 per cent below the original estimates of 2,834 billion cedis.

Taxes on income yielded 760.7 billion as against the original estimate, recording a shortfall of 24 billion cedis. The shortfall is mainly due to a drop in corporate taxes occasioned by the energy crisis.

The out-turn for 1998 was, however, 25.4 per cent higher than the collections in 1997.

Giving the breakdown, Mr Peprah said taxes on domestic goods and services yielded 823.6 billion cedis as against the 851 billion cedis estimated, owing to a shortfall in excise and sales taxes.

The collections were, however, 3.2 per cent higher than the out-turn for 1997.

Receipts from taxes on imports were at 743.7 billion cedis, slightly below forecast but above the collections for 1997.

He said export duty on cocoa yielded 400.5 billion cedis, representing 2.7 per cent above the budget estimates, but 51 per cent higher than the collection in 1997. The favourable performance was attributed to increased volume and price.

Mr Peprah said total expenditure comprising recurrent, domestically financed and foreign financed capital outlays amounted to 4,383.5 billion cedis compared with the original estimate of 5,005 billion cedis.

Non-interest recurrent outlays were at 1,808.7 billion cedis, down 1.3 per cent because of the "tightening of certain expenditure heads to align outlays with the emerging revenue prospects in the wake of the energy crisis."

He said the District Assemblies Common Fund component of the domestically-financed capital outlays amounted to 136.4 billion cedis compared with 105.8 billion in 1997.

Total interest payments amounted to 1,076.4 billion cedis compared with 1,002 billion cedis in the original estimates.

This over-expenditure, he explained, was mainly because interest payments on treasury bills fell at a much slower pace than envisaged.

Mr Peprah put domestically financed capital expenditure including the Common Fund at 760 billion, 21 billion cedis above target.

The Minister described monetary developments in 1998 as favourable.

"Monetary growth slowed down considerably and for the first time in several years money supply recorded a growth of 17.3 per cent year-on-year, compared with 42 per cent and 41.6 per cent in the corresponding periods of 1997 and 1996 respectively."

He said the success achieved in monetary policy management in the year is attributable to the effective monetary policy measures adopted by the government and the closer co-ordination of monetary and fiscal policies.

Government to rake in 4,112 billion cedis this year

Accra (Greater Accra), 5 Feb.

The government projects total revenue and grants of 4,112 billion cedis for this year, the Minister of Finance, Mr Kwame Peprah, said in Accra today.

Presenting the government's budget to Parliament, he said the amount comprises tax revenue of 3,294 billion cedis, non-tax revenue of 475 billion cedis and foreign grants of 343 billion cedis.

Domestic revenue is estimated at 19.3 per cent of Gross Domestic Product (GDP).

Mr Peprah said total expenditure has been programmed at 6,744 billion cedis.

"In line with the new budget approach, the distinction between recurrent and capital expenditures is de-emphasised...the new approach rather emphasises total outlays needed per head to attain specific objectives that are in line with policy directions and priorities of government."

Mr Peprah said targets for 1999 are:

- a real GDP growth rate of 5.5 per cent

- an end-of-year period rate of inflation of 9.5 per cent

- an overall broad budget deficit equivalent to 5.2 per cent of GDP

- a primary budget surplus equivalent to 3.8 per cent of GDP

- an overall balance of payments surplus of 60 million dollars.

Mr Peprah said the 5.5 per cent growth for 1999 is based on a projected growth rate of 5.6 per cent in agriculture, 6.3 per cent in industry, following the availability of energy, and 5.3 per cent for the services sector.

"The energy sector is expected to respond positively to the declining interest rates and the stable exchange rate of the cedi. The projected further slow-down in domestic inflation is in line with continued tightening of fiscal and monetary policies."

The Minister said programmed payment for interest on domestic budget is 737 billion cedis compared with 861.4 billion cedis in 1998.

Interest on external debt is projected to rise from 215 billion cedis last year to 271 billion cedis this year.

He said 165 billion cedis has been projected for pensions and gratuities while non-interest expenditures, comprising personal emoluments,

administration and services under the new Medium Term Expenditure Framework (MTEF) classification, have been programmed at 1,958 billion cedis.

Investment expenditure, comprising the domestically-financed direct Government development outlays, District Assemblies Common Fund and net lending has been programmed at 945 billion cedis.

Additionally, 1,121 billion cedis has been earmarked for donor-funded investment outlays.

Mr Peprah said 165 billion cedis has been provided for transfer to the District Assemblies Common Fund while net recoveries of government lending is estimated at 10 billion cedis.

Mr Peprah said the monetary outlook for the year will be geared towards enforcing the declining trend in inflation with a view to achieving rates below 10 per cent by the end of the year.

The achievement of this objective requires that the growth in money supply will not exceed 15 per cent for 1999.

"Adequate domestic credit to support and expand private sector activity will be encouraged and government recourse to domestic bank financing will be limited during the year."

Mr Peprah said Open Market Operations (OMO) will be intensified to mop up excess liquidity and reduce inflationary pressures.

He said the Bank of Ghana will implement policies to deepen secondary market activity in the money market by reinforcing the role of primary dealers in money market operations.

The Central Bank will also use interest rate policy to reinforce its monetary policy objectives.

The Minister said the treasury bills rates will reflect market developments, adding that this will ensure the maintenance of real positive rates for money market instruments and thereby provide appropriate signals to financial institutions on interest rates.

Mr Peprah said the Central Bank will ensure that the positive trend of decline in interest rates continues.

This will allow banks to improve on their credit and loan assessment conditions, particularly public-sector borrowing requirements as they re-orient their portfolios in favour of the private sector.

The Minister said in 1999, and also in the medium term, external sector policy will aim at continuing to build reserves to more comfortable levels, adding that incentives would continue to be provided for increased production of both traditional and non-traditional exports.

On balance of payment projections for 1999, he said export receipts are expected to grow by 9.7 per cent to 1,885.5 million dollars.

Cocoa is expected to contribute thirty-three one-third per cent amounting to 587.5 million dollars, gold will contribute 38 per cent amounting to 721.1 million dollars and timber receipts will be 188.6 million dollars.

Non-traditional exports, excluding processed cocoa, is expected to rise by 15 per cent to 279 million dollars. This is 14.6 per cent of total export receipts, up from 13.9 per cent in 1998 and 10.5 per cent in 1997.

Mr Peprah said with increased production for domestic consumption as well as for export, merchandise imports in 1999 are projected to revert to the 1997 level of 2,267.8 million dollars. This means there will be a trade deficit of 382.3 million dollars.

Current account balance, excluding official transfers, is projected to record a deficit of 469.3 million dollars while when it includes official net transfers, it will be reduced to 256 million dollars.

Net capital inflows are projected at 316 million dollars. Out of this, net official capital is expected to be 259.5 million dollars and net private capital 56.5 million dollars.

Mr Peprah said recourse to short-term and foreign borrowing will continue to be limited during the year and non-concessionary borrowing avoided.

"It is expected that the surplus on the capital amount will be enough to finance the projected deficit on the current account and generate an overall balance of payments surplus of 60 million dollars in 1999."

Mr Peprah said total outstanding debt is expected to increase to about 5.95 billion dollars. This will fall to 5.83 billion dollars in the year 2000 and fall further to 5.68 billion dollars in 2001.

"Government will continue to contract loans on very concessional terms and seek grants and maximum debt relief from all bilateral creditors."

This year, government will continue to pursue a flexible exchange rate policy with the aim of providing incentives for increased production of exportable goods as well as enhancing the country's competitiveness on the international market, Mr Peprah said.

Accra (Greater Accra), 5 Feb.

The Minister of Finance, Mr Kwame Peprah, today unveiled the government's first medium-term budget from 1999-2001 which projects an average real Gross Domestic Product (GDP) growth rate of 5.8 per cent and an end-of-period inflation of five per cent.

Presenting the financial statement to Parliament in Accra, the Finance Minister said the government projects an average overall broad budget deficit equivalent to 2.6 per cent of GDP, an average primary budget surplus of 3.4 per cent of GDP and an average overall balance of payment surplus of 70 million dollars.

Mr Peprah said building on the macro-economic outcome of 1998, it is further projected that the GDP growth rate in both 2000 and 2001 will be six per cent.

"Government's fiscal operations are targeted to reach the balanced budget by 2001 as recommended by the National Economic Forum. The end-of-period inflation for the medium term is projected at five per cent."

Mr Peprah said the macro-economic programme for the medium term outlines key

aggregates entailed in the strategy to accelerate overall growth of

the economy, lower inflation and improve the external payments position.

"The central objective of the macro-economic policy for 1999 and the medium term is to consolidate the gains made in 1997-98 and set the stage for more ambitious targets that could lead to the attainment of the objectives of Vision 2020."

GDP growth rises by 4.6 per cent

Accra (Greater Accra), 5 Feb

Mr Kwame Peprah, Minister of Finance, today said the nation recorded 4.6 per cent GDP growth, down by one per cent, from the projected 5.6 per cent rate for last year which was later revised to 4.8 per cent on account of the energy crisis.

The out-turn though lower than the target rate of 1998 was still higher than the rate of 4.2 per cent recorded in 1997, Mr Peprah said this when presenting the 1999 budget and financial statement policy in Parliament.

He said the impact of the energy crisis on the economy was not as severe as anticipated because the agricultural sector which constitutes the largest sectoral weight in national output was largely unaffected by the crisis.

In addition, timely measures taken to insulate the bulk of industry and service sectors from the power outages also helped to mitigate the impact of the crisis on the economy.

In terms of aggregate demand, Mr Peprah said the growth of the economy was export-led. "There was strong performance in the exports of cocoa, gold and non-traditional goods."

Besides, the external source gap declined slightly in relation to GDP, as the expansion in total exports more than offset a significant increase in imports.

On the performance of the other sectors, Mr Peprah said agriculture grew by 5.3 per cent in 1998, "considerably higher than the 4.3 per cent growth rate recorded in 1997."

He estimated that the cocoa sub-sector have grown by 11 per cent while the crops and livestock sub-sector grew by 3.2 per cent.

The fisheries sub-sector also grew by 1.8 per cent and the sub-sector of forestry and logging grew by 22.1 per cent.

The industrial sector was adversely impacted upon by the energy crisis. Figures indicate that growth in the sector was 2.5 per cent in 1998 compared with 6.4 per cent in 1997.

The growth rate of the mining and quarrying sub-sector also declined to four per cent from the 5.6 per cent level achieved in 1997 while output of electricity and the water sub-sector is estimated to have declined by 10 per cent for the year as a whole.

He said, however, that resumption of activity in the manufacturing sub-sector in the second half of the year ensured a growth rate of three per cent while there was an improved growth in construction activity to 5.5 per cent from 4.4 per cent in 1997.

Output of the services sector rose by six per cent, increasing its share in real GDP to 29.3 per cent.

Mr Peprah said although the energy crisis affected adversely some of the services sub-sectors, others including finance, insurance, real estates, business services, private non-profit services and government services grew higher than in1997.

A major development in the computation of consumer price indices in 1998 was the rebasing of the country's consumer price index numbers by the statistical service.

He said the downward trend in inflation, which characterised the whole of 1997, continued in 1998. However, the deceleration in 1998 was less pronounced than the trend in 1997.

From a rate of 20.8 per cent in December 1997, inflation on a 12-month end period basis fell to 15.7 per cent in December last year.

A tourism development fund to speed-up growth in the sector is being considered by the government, Mr Kwame Peprah, Minister of Finance, announced.

Mr Peprah said government will continue to create a favourable climate for the sustainable development, marketing and promotion of tourism and has earmarked 17.6 billion cedis for its development under the three-year model budget he tabled in Parliament .

The focus for the medium-term will be the implementation of the 15-year National Tourism Development Plan during which investments in both infrastructure and superstructure will be undertaken with concentration on heritage, cultural, ecological, recreational and conference tourism.

The minister said the government will source funding to implement the Slave Route Project which is an important theme in developing cultural heritage tourism.

Another target this year will be for private sector investment in scuba diving along the coast and pre-feasibility studies on the use of tourism facilities to generate employment and reduce poverty in selected communities.

Mr Peprah said government will collaborate with other institutions to host the joint 34th World Tourism Organisation (WTO) Commission for Africa (CAF) meeting and the 24th African Travel Association (ATA) congress, trade show and convocation of African Ministers of Tourism.

The other activities are the second Emancipation Day celebration and the second Inter-Tourism Fair.

On Trade and Industry, the Minister said government will promote and facilitate enterprise development, internal and export trade diversification and value-addition.

He said 47.6 billion cedis have been voted for the period 1999-2001 during which the ministry will formulate and harmonise policies that will ensure inter-sectoral collaboration in the implementation of trade and industrial policies.

It will also improve entrepreneurial skills, technological capabilities and accessibility to credit and markets by the informal sector.

Mr Peprah said local manafacturers will be encouraged to gear their efforts towards meeting local and international market requirements.

Accra (Greater Accra) 5 Feb.

The Free, Compulsory and Universal Basic Education (FCUBE) programme initiated in 1996 will be the focus of government's attention during the period 1999-2001.

Mr Kwame Peprah, Minister of Finance, who made this known in Accra in his 1999 budget statement to parliament, said an amount of 97 billion cedis out of the budget has, therefore, been programmed for basic education.

''In order to increase access to basic education under the FCUBE, on-going work on the construction of 150 classroom blocks, 300 four-unit teachers residential accommodation, 150 KVIP toilets and rehabilitation of 2,000 classrooms distributed throughout the 110 districts will be completed during the year.''

''This year, 6,000 head teachers and about 200 circuit supervisors will be trained in school management and supervision.''

Mr Peprah said the functional literacy programme will be continued, adding that, in this connection, about 200,000 learners will be trained annually in basic literacy.

The computerisation of the Passport Office will be completed this year to ensure the provision of efficient consular services within and outside the country, The Minister of Finance, Mr Kwame Peprah, said in Accra, today.

This will give that office the capacity of issuing about 1,000 passports a day, he said in his Budget to Parliament.

The Ministry will also design new personal data forms for distribution to all Ghanaians overseas for completion to enable the government update records of Ghanaians overseas and

facilitate the provision of prompt consular service to Ghanaians abroad, especially during emergencies.

Mr Peprah said 207.2 billion cedis has been made available to the Ministry of Foreign Affairs to achieve its objectives in the medium term.

For 1999, the amount will be 85 billion, while 85.3 billion has been programmed for 2000 and 86.9 billion cedis for 2001.

The Minister said government will continue to pursue a foreign policy that will foster good neighbourliness and closer relations with other countries.In the light of this, the foreign ministry proposes to hold a meeting in Accra involving Ghana's heads of missions to exchange views on the direction of the country's foreign policy in the next millennium.

Mr Peprah said to upgrade the Ministry's human and institutional capacity for the efficient execution of the country's foreign policy objectives,

government has authorised the training of 200 officers from the Ministry in diplomatic skills.

The government also intends to re-stock the Ministry's library and install modern information facilities.

The Minister said one billion cedis has been allocated this year towards the provision of permanent accommodation for the Legon Centre for International Affairs.

He said the ministry will collaborate with relevant Ministries, Departments and Agencies to expand its data base on trade, investment and tourism.

It intends to provide data on export, investment and technological opportunities abroad to private sector organisations on a quarterly basis.

Accra (Greater Accra) 5 Feb

The Ministry of Justice has been allocated 11.6 billion cedis to be used in strengthening institutions under it and to provide logistic support.

Presenting this year's budget in Parliament today, Mr Richard Kwame Peprah, Minister of Finance, said projects earmarked include construction of office and residential accommodation at Kumasi, Koforidua, Sefwi-Wiawso, Tarkwa, Dunkwa-on-Offin, Swedru, Obuasi, Goaso, Nkawkaw and five other district capitals for the Attorney-General's Department.

A library complex will be built for the Law School in Accra, an office block for the Council for Law Reporting, head office block for the Legal Aid Board and a new head office complex for the Serious Fraud Office.

Mr Peprah said five commercial courts and 10 tax courts as well as additional community tribunals will be established.

The programme for computerisation of courts will be pursued as well as the renovation of court buildings and residential houses.

Mr Peprah said 21.4 billion cedis has been provided for the JudicialService and that projects earmarked include construction of a High Court Complex at Tema, renovation of Supreme Court buildings in Accra and the renovation of Ho High Court Complex.

The others are rehabilitation of Kumasi high Court Complex and Judicial Service building, construction of Sunyani and Cape Coast High Court buildings, construction of a new administrative block for Accra and construction of bungalows at Tamale.

He said 6.2 billion cedis has been allocated to the Commission on Human

Rights and Administrative Justice to extend its presence and services to all regions and districts.

This amount will be used in strengthening it as well as to recruit and train additional staff and provide logistics.

Other projects earmarked are completion of two residential accommodation, rehabilitation of its Accra offices, purchase of vehicles, 40 motor bikes, furniture, fittings and office equipment.

Accra (Greater Accra) 5 Feb 99

Expenditure during the government's Medium Term programme (1999-2001) is estimated at 20,670 billion cedis, Mr Kwame Peprah, Minister of Finance said today.

Presenting the government's budget to Parliament in Accra, he said "total discretionary envelope" is projected at 3,859 billion cedis for 1999, 4,280 billion cedis for 2000 and 4,431 billion cedis for 2001.

Mr Peprah said these budgetary allocations are broad-based in that they include funds locally generated by the government and external sources.

The new budgetary process closely aligns the prospective activities of Ministries, Departments and Agencies (MDAs) to policy directions that have been spelt out by government.

The Minister said a breakdown of allocations to individual MDAs are based on a strategic planning process that assesses an MDA's mission, objectives or goals for the period, activities that would be required and outputs that would be delivered to achieve the stated goals.

For the purpose of the Medium Term Expenditure Framework (MTEF), five broad sectors have been developed under which specific MDAs are classified, Mr Peprah said.

These are General Administration, Economic Services, Infrastructure, Social Services and Public Safety.

The Minister said the share of government's discretionary funding over the medium term is: Social Services (31.06 per cent), Infrastructure (24.01 per cent), General Administration (22.96 per cent), Economic Services (10.09 per cent), Public Safety (10.81 per cent) and Contingency (1.1 per cent).

For this year, the breakdown of expenditure is Social Services 30.4 per

cent, Infrastructure 21.1 per cent, General Administration 26.89 per cent, Economic Services 10.3 per cent, Public Safety 10.1 per cent and Contingency 1.1 per cent.

"The relatively high share given to the social services reflects Government's commitment to health, education and other initiatives aimed at poverty reduction."

Accra (Greater Accra) 5 Feb

A Local Government Service would be established, while decentralised departments would be integrated into district assemblies and regional co-ordinating councils.

Preparatory work towards the establishment of a community population register system in 16,000 units throughout the country would also be undertaken.

For this and others, the government is to spend an amount of 85.8 billion cedis this year on the Ministry of Local Government and Rural Development, Mr Kwame Peprah, Minister of Finance said in a budget statement he read in Parliament today.

Mr Peprah said indicative amounts of 143.4 billion and 151.2 billion cedis have also been allocated for years 2000 and 2001 respectively.The amounts are part of an overall 380.4 billion cedis that have been programmed for the achievement of certain inputs over the next three years

The Finance Minister explained that under the programme, the government will speed up the implementation of the decentralisation programme, and build upon the human resource and institutional capacity of local government institutions.

The government also intends to increase the coverage of births and deaths registration and continue with interventions to promote human development and sustain the orderly and healthy growth of rural and urban settlements.

Giving the highlights on other major initiatives and interventions that would be undertaken, Mr Peprah said an institute of local government studies would be set-up to support human resource development within the sector, while women's groups would be organised and trained to enhance their economic opportunities.

Mr Peprah said the expanded sanitary inspection (ESI) would be re-launched to promote enforcement and compliance with sanitation regulations.

Young girls and women would also be trained in the women's training institutes to arm them with vocational skills, he added.

The implementation of certain programmes including the urban infrastructure upgrading projects in 11 urban areas, namely Bawku, Bolgatanga, Wa, Techiman, Sunyani, Koforidua, Ho, Keta/Anloga, Agona Swedru, Cape Coast and Elmina will continue.

Preparatory work towards expanding similar interventions to 25 additional urban settlements throughout the country would also be implemented, the Minster said.

Other projects are: waste management sanitation improvement and drainage works in Accra, Tema, Kumasi, Sekondi-Takoradi and Tamale;the improvement of water supply in Ejura, Kintampo and Nkoranza and rehabilitation of the market and lorry park in Atebubu.

Accra (Greater Accra) 5 Feb.

The Minister of Finance, Mr Kwame Peprah, said today that over the medium term, the government will maintain its drive to ensure transparency, good governance and political stability.

This will be done through the established institutions of parliamentary democracy to facilitate foreign and domestic participation in the economy.

Presenting the government's budget to Parliament in Accra, he said the General Administration sector under the Medium Term Expenditure Framework, comprises Local Government and Rural Development, Foreign Affairs, Finance, Parliamentary Affairs and Office of Parliament.

The rest are Public Services Commission, National Electoral Commission, Office of the Administrator of District Assemblies Common Fund, General Government Services, Office of Government Machinery and Audit Service.

Mr Peprah said economic management will be strengthened and focus will continue to be placed on the formulation and implementation of sound fiscal and monetary policies.

There will also be efficient mobilisation, allocation and management of financial resources.

"Good public financial management and continued promotion of an investor friendly environment for both domestic and foreign investment will also be pursued."

Mr Peprah said to achieve these broad-based objectives, a total of 2,887 billion cedis has been allocated to the Administration Sector over the medium term. The amount for 1999 is 1,038 billion cedis.

Indicative provisions for 2000 are 949 billion cedis while those for 2001 are 900 billion cedis.

The Minister said the allocations to the General Administration sector are expected to decline gradually over the years, from 26.89 per cent to about 20.31 per cent of total discretionary expenditures.

"The decline in budgetary allocations in 2000 and 2001 will reflect the increased efficiency in public service administration as a result of the reform programmes which are currently in various phases of implementation."

Mr Peprah said 313.8 billion cedis has been programmed for the Ministry of Finance and its departments and agencies.

For 1999, the amount is 120.8 billion cedis while indicative amounts for 2000 are 128 billion cedis and for 2001, 144.9 billion cedis.

The Minister said government will be enforcing the regulation that the Controller and Accountant-general's Department is the sole authority for the issuance of value books.

To this end, budgetary allocations hitherto made to the revenue collection agencies for printing of value books have now been allocated to the Controller and Accountant General's Department. For this year, 10 billion cedis has been allocated.

Mr Peprah said to ensure a smooth take-off of the National Population and Housing Census, 30.2 billion cedis has been provided this year for on-going preparatory work for the Statistical Service.

Accra (Greater Accra), 5 Feb.

A transitional power system development plan to ensure that last year's power outages do not occur again was today presented to Parliament by Mr Kwame Peprah, Minister of Finance, while delivering this year=92s budget statement.

The plan involves consolidating the achievements made to eliminate the power outages under last year's emergency power supply expansion plan, and to develop and present a programme for private investment in the power sector.

Mr Peprah said the government will facilitate the granting of the necessary consent, permits and licences in line with the appropriate laws and regulations, to enable prospective power supply projects to proceed.

A major project earmarked for 1999 is a joint venture involving VRA to add 330 MW to the Takoradi Thermal Power complex which will be completed between 2000 and 2001.

The second is the GNPC project to fully commission and operate by the end of the year, a 125 MW power barge facility and associated transmission lines under construction with funding from the Japanese government.

The minister said two other projects are a joint venture involving the ECG to restore 80 MW generation capacity and to upgrade the distribution network within the Tema industrial estate before 2000 ends and the 220 MW independent power project being sponsored by the mining companies to assure themselves of long-term reliable power supply.

Mr Peprah said govgernment is also placing a high priority on the development of the West African gas pipeline project which will ensure that by 2002, the country will have access to the long-term supplies of natural gas from Nigeria and to other sources of supply in the sub-region.

''This project has a great potential to demonstrate how we in the sub-region can benefit from regional energy integration within ECOWAS and also form investment partnerships between the public and the private sectors to mobilise investment, expertise and know-how to add value to our economies.

"An initial benefit to Ghana will be through the reduction in the costs of thermal generation at Takoradi and other major value added projects envisaged under Vision 2020 to process industrial minerals such as bauxite, manganese and limestone," he added.

Mr Peprah said other activities to be undertaken this year include the electrification of 120 towns and villages to be connected to the national grid under the National Electrification Project and an additional 400 towns and villages under the Self-Help Electrification Project.

He said five villages in the Central, Eastern, Volta and Upper West regions will be provided with power under the solar energy programme.

" At the end of this programme, about 1,600 solar home systems would be installed in all the 10 villages originally identified under the project.

On mining Mr Peprah said government will pursue policies for efficient development and management of mineral and other geological resources while at the same time strengthening its supervisory capacity on mining companies to ensure minimum degradation of the environment.

For the realisation of the outputs of the mines and energy sectors, 418.5 billion cedis has been allocated out of which 133.3 billion cedis will be spent in 1999 under the model three-year budget .

For year 2000, 140 billion cedis has been allocated and 145.3 billion cedis for 2001, he said.

Budget - Agriculture

Agricultural sector to get 410.8 billion cedis in three years

Accra (Greater Accra), 5 Feb

The government is to spend 410.8 billion cedis for the medium term 1999 to 2001 to improve agriculture.

For 1999, an amount of 133. 7 billion cedis has been allocated with indicative provisions of 136 billion cedis for 2000 and 141.6 billion cedis for 2001, Mr Kwame Peprah Minister of Finance announced when he presented this year's budget statement to Parliament today.

During the next three years the main objectives of the Ministry of Food and Agriculture will be to formulate policies that will promote increased agricultural productivity, diversification, as well as facilitate farmers' and fishermen's access to credit and market.

"Government will facilitate access to improved local technologies in the food crop and livestock sub-sectors, particularly, in respect of Root and Tuber Improvement Programme, Food Crop Development Project and the Coconut Sector Development Project."

For the livestock sector, 28 watering facilities will be developed in the Upper West, Northern, Greater Accra and Volta regions.

3,000hectares of improved grazing land will be developed by assisting forage seed producers in deficient areas to produce 6,000 tons of forage seed for cultivation.

As part of its Breeding Improvement Programme the Ministry will embark on accelerated livestock development scheme for the provision of improved breeds to farmers.

Under the Agricultural Sector Investment Project (ASIP), it is envisaged that additional 159 projects will begin and completed by the end of 1999, when the project officially comes to an end. 282 projects, made up 161 markets, 34 roads, seven agro-equipment/structures and 80 dugout wells that are at various stages of construction will be completed.

The government and the Agriculture Development Bank will continue to fund the Nucleus Outgrower and Youth in Agriculture Programmes as well as programmes to encourage the production and marketing of cotton, inventories of maize and fish.

Government to establish land banks

Accra (Greater Accra), 5 Feb

The Ministry of Lands and Forestry is to start work on establishing and operating land banks to facilitate access to land for investment.

For this and other activities the government is to provide the Ministrywith 147.3 billion cedis over the medium term from 1999 to 2001, Mr Kwame Peprah, Minister of Finance said in a budget statement he read in Parliament today.

For 1999 an amount of 43.6 billion cedis has been provided, while indicative amounts of 48.4 billion cedis and 55.4 billion cedis have been made for 2000 and 2001 respectively.

Other activities for 1999 include the preparation and updating of a profile of government lands by the Lands Commission and streamlining and

publicising the procedures for granting concurrence to land.

The Timber Resources Management Act and the regulations, which will increase the stumpage values of timber resources and ensure appropriate economic returns to land-owning communities would be implemented.

Timber royalties will be increased to reflect stumpage values as far as possible and with the sustainability levels of various species.

A Savannah Resource Management Centre will be established at Tamale to provide technical guidance to communities that will develop and implement their own programmes to promote sustainable savannahresource management.

The Ministry will encourage collaboration between Forestry and Wildlife Departments to initiate programmes to strengthen biodiversity and conservation in some selected forest reserves.

The Wildlife Department will be strengthened to promote community involvement in the management of wildlife resources and also ensure that laws are enacted to regulate the development of inland and coastal wetlands.

c227 billion for environment Ministry

Accra (Greater Accra) 5 Feb.

A provision of 227 billion cedis has been programmed in the medium term for the Ministry of Environment, Science and Technology (MEST) to achieve its programmes.

A budget statement read by Mr Kwame Peprah, Minister of Finance,in Parliament today, said 67 billion cedis would be spentthis year while "indicative amounts of 75 billion cedis and 85 billion cedishave been allocated for the year 2000 and 2001 respectively".

It said over the period 1999 to 2001, MEST will intensify work on theapplication of safe and sound environmental practices, and to commercialise research findings.

The ministry will also promote a more efficient and effective partnership between the agencies under it and its clients, especially the private sector and ensure the intensification and determination of various appropriate technologies in rural areas.

Programmes to be undertaken include the completion and commissioning of a second radiotherapy centre in Kumasi and establishment of a National Radioactive Waste Management Centre.

Other programmes the MEST will undertake are the development of action plans for the implementation of National Science and Technology Policy.

It will ensure the continuation of training, technology transfer, clientand customer services to about 15,000 people nation-wide by GRATIS.

The rest are Extension of Rural Enterprises project to five moreDistricts which was not mentioned;

-Appointment of Environmental Inspectors to ensure effective compliance with national environmental regulations; Intensification of technologies for water harvesting for irrigation purposes;

-Undertaking of active adaptive research to develop indigenous farm machinery to gradually replace the hoe and cutlass;

- Production of seedlings of Odum and Wawa species for general afforestation and establishment of woodlots as well as improved Teak seeds for establishment of plantations; and, -Promotion of the commercial efforts of the agencies under the Ministry tomake them less dependent on government subvention and also moreresponsive to their customer needs.

The statement mentioned also investment activities the MEST will undertake which include the construction of Administration Block for the Council for Scientific and Industrial Research (CSIR).

Others are completion of intermediate technology transfer unit projectslocated in Bolgatanga, Wa, Tamale, Sunyani, Takoradi, Cape Coast, Koforidua, Ho and Tema;

- Rehabilitation of guest houses, offices and bungalows of CSIR);

- Rehabilitation of the Mathematics and Seminar Halls as well as bungalows and offices of the Atomic Energy Commission as well as the rehabilitation of offices and bungalows of the Savannah Agriculture Research Institute.

It said MEST will ensure the supply of research and scientific equipment to various research institutes under it.

The institutions are the Forest Research Institute, Atomic Energy Commission Secretariat, National Nuclear Research Centre, Bio-Nuclear Agricultural research Institute and Crop Research Institute, among others.