BUDGET FOR THE NEXT 50 YEARS LAUNCHED

THE country's budget for the next 50 years, which predicts, among other things, a five per cent growth rate by 2057, was launched in Accra yesterday.

The budget, dubbed the 2057 Budget, also predicts a $60,000 per capita, two per cent inflation, three per cent interest rate and two years' import cover for the country's international reserves.

Presently, inflation stands at 10.4 per cent, interest rate is between 17 and 22 per cent and per capita at less than $500.

On fiscal policy, the budget foresees a dramatic increase in the country's reserves from the present $2 billion to $800 billion, which is one-tenth of Africa's total reserves.

Recognising the importance of hydro' power to the economy, the budget also forecasts a continuous implementation of what it describes as the "Power Afforestation Programme" to protect the vegetative cover of the country's rivers and lakes.

The Vice-President, Alhaji Aliu Mahama, who launched the budget, called for a more disciplined approach towards project planning and implementation to ensure its success.

The ceremony coincided with the celebration of 50 years of partnership between Ghana and the World Bank.

The Vice-President observed that planning must be more meticulous, while the co-ordination of progrmmes must be enhanced and implemented.

Alhaji Mahama said the enforcement of rules and regulations needed to be strengthened in order to entrench the role of law and respect for civil contractual rights.

On the relationship between Ghana and the Breton Woods institutions, the Vice�President noted that some of the policies of those institutions had been so tough that ideological debates raged over whether they could be carried out in a democratic environment.

However, he said "today we have an economy that is moving in the right direction", adding that policies that would have been thought of as impossible in an environment of almost absolute liberty like the deregulation of the utilities and petroleum pricing had been conceived and implemented with success. '

"TOday, the government has successfully insulated the economy from so-called external, shocks, to the point where inflation; interest rate and exchange rate are stable enough for the private sector to be able to predict and plan with certainty," he noted.

He also outlined the positive credit ratings from reputable international rating agencies and said "we are better integrated into the international financial system with the commencement of offshore financial services and the move to issue cedi denominated sovereign bonds on the international market".

The Minister of Finance and Economic Planning, Mr Kwadwo Baah- Wiredu, said Ghana's relationship with the international financial institutions had gone ,through different phases in its evolution.

He said with the onset of the structural adjustment programme in the 1980s, Ghana, like many African and developing countries, evolved an economic recovery programme which was aimed at achieving higher growth, improving living standards through the attainment of macro-economic stability and implementing ambitious structural reforms.

He pointed out that achievements in programme implementation over the years had been mixed, since the upward trend in per capita income was usually interrupted by setbacks such as coups d'etat and unfavourable global conditions.

Mr Baah-Wiredu, however, said since 2001, the government had pursued a strategy that focused on macro stability and poverty reduction.

"These we have pursued by focusing on human resource development, private sector-led growth and good governance and civic responsibility," he stressed.

In a statement, the Senior Country Programme Manager of the World Bank, Ms Kathy Baines, said the bank had so far supported about 150 projects to the tune of about $5 billioh, adding that Ghana received about $300 million in loans and grants each year for projects.

She said in spite of the fact that the World Bank was willing to support the country's efforts to move from a third ,world country to a middle-income country, "the solution lies in the hands of the people of Ghana".

The Country Programme Manager of the International Finance Corporation (IEC); Ms Imoni Akpofuri, said the corporation, which was the private sector wing of the World Bank, was presently supporting Ghana in the area of housing, adding that it had so far supported 47 projects to the tune of $792 million.

The International Monetary Fund (IMF) Resident Representative in Ghana, Mr Arnold Mcintyre, said the international community had recognised Ghana as Africa's success story and, therefore, it was prepared to share in that glory by supporting the country's efforts.

The Chairman of the National Development Planning Commission, Mr J. H. Mensah, who presided, recounted the early days when Ghana made plans to join the Breton Woods financial institutions and said the country had gone far from that period.

Mr Mensah pointed out that the institutions had been aware of the country's ambition at that time and agreed to support it, adding that "as we celebrate 50 years, let us redefine our vision and look for new prospect and possibilities in order to achieve our aim".
Source Daily Graphic