2012 Budget: Finance Minister Delivers Govt's Fiscal Policy In Parliament

Minister of Finance and Economic Planning, Dr. Kwabena Duffuor, has finished presenting the 2012-13 budget Statement and Economic Policy in Parliament.

Earlier members of both sides of the house haggled over parliamentary procedures when the Speaker of Parliament, Justice Joyce Bamford-Addo, invited Dr. Duffuor to the floor to deliver his much-awaited statement.

Dr Duffuor was asked to withdraw his earlier motion that sparked a lot of debate for close to 45 minutes with both the Minority and Majority wrangling over a motion paper that was wrongly laid.

Delivering the budget statement, the Finance Minister said Ghana lifted 2,980,720 barrels of oil at the end of October. Proceeds from the first three liftings amounted to US$337.3m and that of the fourth will be recorded at the end of November. An amount of US$112m has been transferred into the Consolidated Fund while US$54.8m transferred into the Stabilisation Fund.

He revealed that the Ministry of Finance has set up a fiscal decentralization unit.

Amidst shouts of approval from members of the Majority, the Finance Minister disclosed that the hedging of oil has contributed significantly to the maintenance of the economy, whiles interest and policy rates has kept decreasing as well as rates of treasury bills.

"Government will hedge interest rates to mitigate risks," he added.

He gave the assurance that the NDC would maintain the fiscal consolidation achieved so far despite the fact that 2012 is an election year.



2012 TAXATION MEASURES:

Dr. Duffour revealed that Taxation of professional and other members in the informal sectors especially the self-employed, will take effect in 2012, adding that government is targetting 8% of that sector from the present 4%.

He further disclosed that Government is offering amnesty to all companies who have evaded tax.

"The tax amnesty will start from January 2012," he stressed.

The Finance Minister indicated that to help with effective revenue mobilisation, following bills: (i) Tax Administration Bill (ii) Internal Revenue Bill (iii) Customs Bill (iv) VAT Amendment Bill, will be presented to Parliament in 2012.

The Finance Minister added that 1,258, 690 school uniforms and 39,536, 119 exercise books were distributed to pupils in deprived areas throughout the country.


WATER RESOURCES, WORKS AND HOUSING

Government will provide 4,000 new boreholes countrywide in fulfillment of its promise of providing 20,000 boreholes over the next 5 years.

Government, in addition, will provide 670 new boreholes in collaboration with development partners, rehabilitate 400 existing boreholes, construct 20 new hand dug wells, 4 small community pipe systems and 18 small town pipe systems, as well as rehabilitate 13 existing small town pipe systems.

Government will continue with the Esakyire, Konongo-Kumawu-Kwahu Ridge Water project and Kumasi water expansion project. It will also start the rehabilitation/construction of water treatment plants, reservoirs and pipelines at Nsawam, Sunyani, Damango and Kpong.

Government will source funding to complete the 4,720
Government Affordable Housing Projects at Borteyman, Kpone, Koforidua, Asokore-Mampong, Tamale and Wa.

For the implementation of these programmes and activities, the Water Resources, Works and Housing Ministry has been allocated an amount of GH�283,176,014. 00


TRANSPORT, ROADS AND HIGHWAYS

The Accra-Nsawam and Kumasi-Ejisu railway lines will be rehabilitated to increase sub-urban rail service. In addition, the reconstruction of the Western Corridor Railway Line will commence under the China Development Bank (CDB) Facility.

The Takoradi Port Expansion Project and the Multi-Modal Transport Project that links the Tema Port by rail to the Volta Lake and coastal fishing harbours and landing sites will be undertaken.

A total of 54,084km of routine and periodic maintenance works will be undertaken while 250km of spot improvement works will be done.

in fulfilment of its pledge to complete key road infrastructure around the country, Government will in 2012 complete the construction of the following major highways commonly referred to as the �Gang of Six�: Achimota-Ofankor, Dansoman highway, La-Teshie expansion project, Tetteh-Quarshie-Pantang and Nsawam By-pass (Accra bound). Construction works on Sunyani Road (Komfo-Anokye to Abuakwa) and Kwafokrom to Apedwa Roads will continue.

Government will continue to collaborate with private sector on the Public Private Partnership (PPP) arrangement for the financing, construction and management of road infrastructure. Projects to be considered include: Motorway Overpass at Teshie Link Junction, concrete overlay of Accra-Tema Motorway and expansion, dualization of Accra-Kumasi and the Accra-Cape Coast- Takoradi Roads.


Construction of Eastern Corridor Roads Project

As part of measures to open up the country through efficient and effective road network, Government has secured donor funding amounting to US$1. 5 billion for the construction of the Eastern Corridor Roads. The project has been packaged into seven (7) sections, namely:

Section 1: Tema roundabout � Kpong � Atimpoku � Asikuma junction
(91 km);

Section 2: Asikuma Junction � Hohoe � Jasikan � Poase Cement (147. 2 km)

Section 3: Poase Cement � Dodo � Pepesu � Nkwanta (78. 2 km);

Section 4: Nkwanta � OtiDamanko (70. 0 km);
Section 5: Tuwuo � Gushiegu � Nakpanduri (83. 2 km);

Section 6: Nakpanduri � Bawku � Kulunguru (100 km); and

Section 7: Atebubu � Kwame Danso

Government has made a budgetary provision of GH�100. 0 million to begin the construction and development of the project in 2012.

The Ministry of Roads and Highways, has been allocated GH�907,794,236. 00 for the implementation of their programmes and activities in 2012. In addition, GH�250,000,000 will be spent on the �gang of six� projects.

The Ministry of Transport will receive and amount of GH�99,463,777. 00 for the implementation of their programmes and activities in 2012.


EDUCATION

Government will complete ongoing school infrastructural projects especially in the basic and senior high schools, including:

Construction of 172 emergency six-unit classroom blocks at a cost of
GHc49, 718,664.

construction of 100 emergency blocks for 200 schools at a cost of GHc164, 872,400.

Construction of 55 dormitory blocks, 380 six-unit classroom blocks and the rehabilitation of 100 Science Resource Centres in selected SHS throughout the country to be completed at a cost of GHc25. 0 million.

The Council for Technical and Vocational Education and Training (COTVET) will continue to receive support to coordinate skills development in both the formal and informal sectors. In the light of this, Competency Based Training will be rolled out to additional 50 institutions and
10 trade areas.

Government will intensify the implementation of intervention programmes such as the capitation grant, free school uniforms, free exercise books and subsidies to basic and senior high schools as indicated below;

 capitation grant - GH�25,368,008
 free school uniforms - GH�28,800,000
 free exercise books - GH�28,967,500
 BECE subsidy - GH�6,718,332
 SHS subsidy - GH�48,197,652

Government will also take measures to ensure that rehabilitated and newly constructed infrastructure facilities are user friendly to students with disabilities whilst action plans would be developed to implement provisions of the Disability Act.

In 2012, the total amount of resources that would be utilized by the Ministry of Education to fund their programmes and activities is GH�2,871,680,218. 00


HEALTH

Government will continue to implement programmes to bridge equity gaps in access to health care and nutrition services and also ensure sustainable financing arrangements that protect the poor.

In connection with the above, the following programmes and activities will be undertaken in the health sector:

Completion of maternity and children‟s block at Komfo Anokye
Teaching Hospital;

Construction of children‟s block at Korle-Bu;

Construction of Maternity hospital at Tema;

Provision of additional ICT equipment support to 86 district level diseases surveillance units;

Completion of 5 Polyclinics at Babile/Brefo, Wechau, Ko, Lambuise and Hain and offices for the Nurses‟ and Midwives Council at Okponglo, Accra;

23 Digital X-ray in selected District Hospitals nationwide to enhance diagnosis are far advanced for implementation;

Expansion of 6 Health Training Institutions and major Rehabilitation and upgrading of the Phase 3 Bolgatanga Regional Hospital;

Supply and Install medical equipment under OPIC funding in 8 regional hospitals, 30 health centres, 3 Teaching hospitals and 90 District hospitals nationwide;

Improve access to quality maternal, neonatal, child and adolescent services and intensify prevention and control of communicable and non-communicable diseases ;

other infrastructure projects earmarked for execution to increase access to health care will include the completion of 50 CHPS Compound.
An amount of GH�1,799,434,809. 00 has been allocated to fund interventions in the Health sector.


POVERTY REDUCTION PROGRAMMES

poverty reduction is the core pillar of the Better Ghana Agenda of the NDC Government, and indeed of the GSGDA. Government spending on poverty reduction programmes and projects therefore continues to reflect our commitment to this important cause. During the fiscal year
2011, a total of GH₵2. 9 billion was spent on poverty reduction programmes and projects. The efficiency of the resource use was also improved significantly.

Madam Speaker, permit me to highlight some of the critical poverty reduction programmes and projects undertaken in the first 9 months of the fiscal year 2011.

GH₵783. 61 million was spent on basic education;
GH₵455. 13 million was spent on primary health care programmes;

GH₵6. 71 million was spent on rural water provision;
GH₵30. 03 million was spent to provide electricity for our rural
dwellers;

GH₵66. 4 million was used to fund the Fertilizer Subsidy Programme to support rural agriculture and the establishment of Agricultural Mechanization Services Centers;

GH₵36. 33 million was used to provide rural roads; and
GH₵897. 22 million was spent on other poverty related activities, including social welfare, public safety, drainage systems, environmental protection, rural housing, and decentralization.
Other social intervention programmes implemented to support poverty reduction include the following:

In the education sector, GH�138 million was spent in fiscal year
2011 on capitation grants, BECE and senior high school subsidies, supply of free exercise books and school uniforms in deprived
communities, rebuilding of schools under trees, rehabilitation/construction of science resource centers, and
scholarships for further studies.

This figure will increase to GH₵179. 28 million in fiscal year 2012. In addition, GH₵60. 00 million was spent in 2011 on the School Feeding Programme. The programme will receive GH₵60. 00 million in 2012.

 Some GH₵12. 00 million was spent on the Local Enterprises and Skills Development Programme (LESDEP), aimed at empowering the youth through the acquisition of technical and entrepreneurial skills and supporting job creation at the local level. Given the impact of this programme on job creation, particularly jobs for the youth, an allocation of GH₵63. 00 million has been made for this programme in fiscal year 2012.

Government has released an amount of GH�30. 0 million to the Savanna Accelerated Development Authority

With the completion of feasibility studies, Government will commence the construction of infrastructure facilities and installation of equipment in the University of Energy and Natural Resources in Sunyani and The University of Health and Allied Sciences in Ho with a campus at Hohoe. Government has identified several structures for use by the two universities as start- up in anticipation that the first batch of students will be enrolled in the 2012/2013 academic year. An amount of GH�20million has been provided in the 2012 Budget for these projects.

A total of GH₵33. 3 million was spent in 2011 on sanitation and waste management projects undertaken by the MMDAs. For the
2012 fiscal year, the figure will rise to GH₵60 million.

In addition, Government will support Public Private Partnership to
construct/install compost plants around the country to treat waste
and produce fertilizer for farming.

1:36(SADA) for the implementation of its work programme in 2011. Government has allocated an amount of GH₵30 million to SADA for its operational and start up programmes in 2012.

In addition Government will create an investment fund window for long term investment in the SADA zone in accordance with Act 805, 2010. To this end Government, will raise an additional amount of GH₵200 million as seed money for the SADA Investment Fund. A donor conference is scheduled to be held on 21st November 2011 to review SADA‟s long term investments needs and seek to align current and future donor funding to these needs.

The Central Regional Development Commission (CEDECOM) will receive GH�10. 9 million in 2012, while the Livelihood Empowerment against Poverty (LEAP) will be supported with GH�10. 0 million.


HOUSING

since 2009, Government has embarked on a number of initiatives in conjunction with the private sector to provide affordable houses for Ghanaians.

Government will continue to pursue the objectives of the National Housing Policy, to support the private sector to increase housing delivery. Government will source funding to complete the 4,720
Government Affordable Housing Projects at the following 6 project sites; Borteyman, Kpone, Koforidua, Asokore-Mampong, Tamale and Wa.

Disaster Management

total of GH₵25. 0 million was spent on disaster management to support victims of disaster and repair destroyed infrastructure and facilities caused by acts of nature. Adequate provision would be made to fund disaster management in 2012.

1:40to sustain the achievements made in reducing poverty, planned government spending on poverty reduction programmes in 2012 is increased to GH₵3. 2 billion, representing 22. 1 percent of the planned total government expenditure for the year. This amount is intended to support basic education, primary health care, poverty-focused agriculture, rural water, feeder roads, and rural electrification.

Microfinance and Small Loans Centre (MASLOC)

as part of MASLOC‟s mandate to provide, manage and regulate approved funds for microfinance and small scale credit loan schemes and programmes, new loans to benefit 31,793 customers amounting to GH�15. 2million had been disbursed by the end of July 2011. In 2012, an amount of GH�35million will be provided to fund the programmes and activities of MASLOC.

with close monitoring, the Centre successfully recovered
95 percent of the loans disbursed as at June 2011.

in 2012 the Centre will continue to support the value chain processes through the provision of loans and, in collaboration with Ghana Export Promotion Council, find markets for Agro-processed products and the fishing sector.

Progress towards the Millennium Development Goals (MDGs)

Ghana has made significant progress in achieving the Millennium Development Goals (MDGs) of reducing poverty, improving access to education, reducing gender disparities in education in primary education, and providing access to improved water sources. These achievements have been lauded internationally.

progress in the other goals has been slower and meeting the 2015 target date will require accelerated efforts. The MDGs for child and maternal mortality and that for sanitation are lagging behind. Though we continue to make progress in them, the rate of improvement may not be sufficient to put it on track to achieving them by 2015.

Recognizing the significant challenges to achieving these goals government continues to prioritize maternal and child health interventions as well as programs for improving sanitation.


INFORMATION

Government is setting aside GH�1 million for the establishment of the Media Development Fund. The Fund would be administered by a Board of Trustees and is aimed at improving the profession output and competence of media organizations and personnel in Ghana.

Donors and Corporate organizations would be invited to contribute to the Fund.

PUBLIC FINANCIAL MANAGEMENT REFORMS

The Government of Ghana has been undertaking reforms in its public financial management (PFM) systems for the past fifteen years. While these reforms have yielded some results, some weaknesses still remain.

These include the lack of comprehensiveness in the MTEF and the inability to fully control expenditures at the point of commitment.

In the fiscal year 2012, government will continue with the reforms to strengthen the current public financial management systems. Notable among the reforms are the Ghana Integrated Financial Management Information System (GIFMIS), Programme Based Budgeting (PBB), and Wage and Payroll Management.

The overall objective of the GIFMIS project is to improve the allocation of scarce resources to enhance the effectiveness of service delivery. Significant progress has been achieved in the GIFMIS implementation. In the fiscal year 2012, the remaining modules of the system will be rolled out to all the 23 ministries in Accra and the 10 regional capitals, while the piloting of the fixed assets module will take place. Auditing, upgrading and integrating the payroll with the financials will also be completed during the year.

In 2011, the PBB was piloted in the ministries of Tourism and Communication.

In 2012, five additional institutions, namely, Education, Health, Food and Agriculture, Commission for Human Rights and Administrative Justice, and Roads and Highways will participate in the piloting project.


Full rollout of the PBB to all MDAs is scheduled in the 2013 fiscal year.

In line with the principle of equal pay for equal work enshrined in Article 24(1) of the 1992 Constitution of Ghana, Government will implement fully the Single Spine Pay Policy (SSPP) to address and eventually remove the remaining distortions and inequities in the public service remuneration.

As at October 2011, the Fair Wages and Salaries Commission had migrated 55 major public service institutions, representing 97% of the public service employees, onto the single spine salary structure. Even though the migration exercise has resulted in a significant increase in the public sector wage bill, posing serious risks to fiscal sustainability, Government is fully committed to the full implementation of the SSPP to demonstrate our commitment to improving the welfare of public service workers in the country.

In 2012, the Fair Wages and Salaries Commission will collaborate with the Management Development and Productivity Institute to undertake a productivity survey that will assist in promoting and enhancing efficiency and equity in the management of public service pay and also establish the linkage of public sector pay to productivity.

Government will accelerate IPPD migration and target its completion by mid-2012 once the single spine migration exercise is completed.

Already, the migration of 103 out of 137 subvented agencies onto the Integrated Personnel and Payroll Database has been completed.

Madam Speaker, we are scaling up maternal health services, increasing investments in hospital infrastructure, community health planning systems, supply equipment etc.

With respect to sanitation, Madam Speaker, we have significantly increased investments in those areas. Sanitation and waste management programmes continue to be priorities of government.

As part of the fiscal consolidation policy, government is undertaking a biometric registration of all pensioners and active employees on government payroll. The resulting database would be used for all future payments of wages, salaries and pensions in the public sector.

The exercise which has been completed in the Eastern, Volta, Central,Western, and Greater Accra regions indicate that some 29,563 representing 41 per cent of all pensioners could not be accounted for, and can be described as ghost or non-existing pensioners.

the second stage of the exercise would cover the biometric registration of the payroll of active employees in sub-vented Agencies followed by the third phase which would cover 450,662 active employees on the Mechanized Payroll.

as we all are aware, the NDC Government was saddled with huge payment arrears from contracts awarded during the pre-2009 period. Through diligence and proper planning, substantial progress has been made in the clearing these arrears.

In the last three years, a total cash payment of GH₵3. 1 billion has been made to reduce arrears owed to road contractors, statutory funds and state-owned enterprises, leaving a balance of GHC1. 5 billion.


FISCAL DECENTRALISATION

Governments are elected into office to perform three key fiscal functions which are stabilisation, redistribution and resource allocation. Over the years, these three functions have been controlled and executed at the center.

In 2012, government will transfer the resource allocation function to the local authorities as a way of deepening fiscal decentralization and democratic governance at the grassroot in response to demand for local participation in decision making in resource allocation.

Over the last two decades, significant progress has been made in political decentralization and decentralized planning.

However, progress made in the administrative and fiscal decentralization up to 2008 was slow.

In 2009, the LI 1961 was enacted to facilitate the implementation of the administrative and fiscal decentralization.

The LI enabled the transfer of 30,000 civil servants to the Local Government Service and also acted as a trigger for the implementation of the Composite Budget system, the implementation of which has eluded us as a country for 18 long years.

The introduction of the composite budget in 2012 is one major innovation in our budget presentation, which we should all be justifiably proud of.

This indeed is in fulfillment of our pledge to implement a Fiscal Decentralisation Programme to deepen democracy and improve public financial management at the local level.

Over the medium term, the main policy objective of our fiscal decentralization agenda is to establish a predictable and transparent fiscal framework that will facilitate smooth flow of resources to MMDAs as well as ensuring that the utilization of such resources takes place in an efficient, effective, transparent and accountable manner.

Beginning 2012, the budgets of the Category 1
Departments specified in L. I. 1961 will be contained in the budgets of their parent Ministries. The District Composite Budgets will be rolled out for the existing 170 MMDAs.

POLICY INITIATIVES Infrastructure Provision

it is estimated that meeting Ghana‟s infrastructure needs
in the next ten years would cost the country US$ 1. 6 billion per year. To sustain the medium term growth targets set for the country, will require a significant scaling up of investment spending.

even though Ghana‟s fledgling oil and gas industry presents new opportunities for mobilizing additional revenues to finance critical infrastructure yet these revenues are inadequate to meet our financing requirements to close the infrastructural gap. In the immediate to the medium term, therefore, external resources (loans and grants) will continue to be an important complement to the country‟s own resources in closing the infrastructural funding gap.

Public Investment Programme (PIP)

To ensure a systematic, coordinated and comprehensively, planned public infrastructure investment for the next five years, Government will in 2012 prepare a Public Investment Programme (PIP).

The PIP will also assist the Government to establish synergy and complementarity between the various infrastructure types, introduce prioritization into infrastructure provision, and provide the basis for a comprehensive funding plan.


China Development Bank Facility for Infrastructure Projects

His Excellency the President embarked on a high profile visit to China in September 2010 to source US$3. 0 billion facility from the China Development Bank. The facility is to be utilized to reduce the country‟s infrastructure deficit by undertaking a number of critical infrastructure projects consistent with the GSGDA priorities.

Specific projects identified to be funded by the CDB loan include the following:

Western Corridor Gas Infrastructure Project incorporating the
Helicopter Surveillance Fleet for Western Corridor �Oil Enclave�;

Western Corridor Infrastructure Renewal Project (Western Railway
Line Modernization and Takoradi Port Rehabilitation/Retrofit Project);

Accra Plains Irrigation Project;

Coastal Fishing Harbours and Landing Sites Project; v. Eastern Corridor Multi-Modal Transportation Project; vi. Western Corridor Petroleum Terminal Project;
Western Corridor Oil Enclave Toll Road Project;

Development of ICT Enhanced Surveillance Platform for Western
Corridor �Oil Enclave�;

Sekondi Free Zone Project;
SME Projects Incubation Facility; and

Accra Metropolitan Area Intelligent Management Project

These projects have the potential to significantly transform the Ghanaian economy.

For example, the Accra Plains Irrigation Project will irrigate 11,000 hectares of land for a mixed cultivation regime, targeting approximately 60 percent of irrigated area for agribusiness; 20 percent for large scale farmers; and 20 percent for small scale farmers.

Developing the Eastern corridor multi-modal transportation infrastructure will enhance the cost-effectiveness of freight handling corridors linking the Tema Port via the Volta River to the Savannah Accelerated Development Zone, and the land-locked countries of Burkina Faso, Niger, and Mali.

It will also facilitate access to the Afram Plains, Accra Plains and areas of the Volta region that have great potential for developing agro-industrial and fishing businesses.

Government will ensure that each project is supported by robust project execution strategies and project implementation agreements. The disbursement of funds for the projects will be scheduled for consistency with the agreed medium term fiscal sustainability plan.

Public-Private Partnership (PPP)

In line with Government‟s policy to accelerate the delivery of infrastructure and public services, a National PPP Policy has been launched. Government will use the following instruments to support the implementation of the PPP projects:

A Project Development Facility to finance upstream investment appraisal, value-for-money assessment and other feasibility and safeguard studies;

Viability Gap Schemes to provide financial support for PPP projects that are economically essential but not commercially viable; and
Infrastructure Finance Facility to raise the requisite long-term local currency financing for on-lending at commercial rates to private sector partners for PPP projects.

Local Content Enhancement

Huge opportunities exist in pprocurement for the growth and development of local companies and businesses. Recognizing this potential, Government will develop a local content policy for the whole economy.

This policy will significantly enhance the level of participation of Ghanaians in the economic activities of the country.

Government will also ensure that certain goods and services as well as labor expertise which are readily available in the country are not imported.

Labour Market Information System

Labor market information is very critical in designing responses to the problem of unemployment.

In the 2010 Budget Statement, it was indicated that Government was developing and will install a functioning Labor Market Information System (LMIS).

The LMIS has now been put in place, and from fiscal year 2012, Government will incorporate measurable employment targets in its economic and social programmes.

Deepening the Bond Market

A notable weakness in our fledgling capital market is the lack of a meaningful market for debt instruments.

The bond market is currently dominated by government bonds with a visible lack of corporate bonds. The scaling up of both public and private investment in support of accelerated growth will depend critically on the availability of long-term debt in the domestic capital market.

Government has identified the need to deepen the bond market to facilitate the mobilization of long-term sources of funding for both the public and the private sectors. In this regard, Government will set up a National Bond Market Committee in 2012 to undertake the following tasks.

Identify the constraints in the development of corporate bond market;

Study and recommend legal, institutional and process changes needed to accelerate the development of a corporate bond market;
Monitor the performance of the government bond market and to improve its effectiveness as an anchor for the corporate bond market; and

Assist parastatals and the private sector to access the bond market by proposing appropriate financial/technical assistance mechanisms.

Increasing Transparency in the Extractive Industry
I have already made reference to the harmful effects of transfer pricing on the economy.

Ghana will also benefit from greater transparency in information sharing with the rest of the world regarding the activities of multinational companies. Accordingly, Government will enter into Exchange of Information (EOI) agreements with other countries. To this effect, Government in conjunction with our development partners is initiating a project to build the capacities of our revenue agencies. This project will enable Ghana improve its domestic resource mobilization and tax compliance.

In addition, Ghana‟s legal and regulatory framework on resource taxation will be aligned with the Global Forum on Transparency and Exchange of Information.

Improving Competitiveness of the Private Sector
It has been noted that import regime and the cost of domestic inputs including high and unpredictable cost of utilities significantly hampers the competiveness of the private sector.

During the 2012 fiscal year, Government will review the import regime in consultation with the Tariff Advisory Board (TAB) and intensify on-going infrastructure development in the energy and water sectors to facilitate the operations of the private sector.

SME Development

The 2011 Budget Statement outlined a number of measures to strengthen SMEs to enhance economic growth and generate employment.

In 2012 and under the Financial Sector Strategic Plan (FINSSP II), Government will support the Ghana Stock Exchange to create an alternative market where simplified rules of entry will allow SMEs to list.

It is hoped that with less stringent rules, many SMEs will improve their access to finance.

Road congestion has become an economic and social menace.

The long hours spent in traffic undermine labor productivity and increase the cost of doing business and environmental pollution.

The negative impact of road congestion over the next few years will be profound without a dramatic improvement in the public transport system.

To mitigate this situation, Government has initiated the Rapid Transport System that will reduce the time for commuting.

The Rapid Transport System will become functional in the Accra Metropolitan area in early 2012 and will be extended to the Kumasi Metropolitan and Sekondi-Takoradi Metropolitan areas during the year. The Motor Traffic Unit of the Ghana Police Service will also be equipped with modern devices to track and remove broken down and unattended vehicles.

Membership of Shelter Afrique
Government is committed to providing safe, decent and affordable accommodation for its population.

The issue of long term financing that has militated against the housing delivery is being addressed by Ghana‟s decision to join Shelter Afrique (SA), a unique regional housing financial institution.

As a full member of Shelter Afrique, Ghana will have the
opportunity of leveraging financing that will facilitate development in the housing sector.

In addition, the country will benefit from Shelter Afrique‟s experience and expertise in housing policy design and implementation, and build capacity for financial institutions dealing with housing finance.

Ghana‟s subscription of US$10 million has already been paid.

Boosting the Creative Arts Industry

Ghana has a vibrant creative arts industry that can be nurtured to create jobs and provide increase income to all stakeholders.

The industry covers creative sectors such as music, film video and photography, visual and performing arts, publishing, etc.

Global trade in creative goods and services remained very robust during the financial and economic meltdown, with the value of global export of creative goods and services reaching nearly US$600 billion between 2002 and 2008.

Ghana can benefit immensely if it begins to tap the creative sector of the economy, particularly those of the music and film industry.

But this will require an evaluation of the potential of the creative industry to contribute to the growth of the economy.

Beginning in 2012, therefore, Government will collaborate with the music industry to identify the potential of the industry through an impact assessment study.

The study will be used to support the preparation of a medium term strategic framework that will guide the development of the industry. Government will also support the organisation of the 2012 Ghana Music Fair.

An amount of GH�2. 0 million has been allocated to support the creative arts industry in 2012.

Young Graduate Entrepreneurship and Innovation Initiative
In our bid to support unemployed graduates and other youths to start their own businesses, Government will in 2012 establish the Centre for Entrepreneurship, Employment and Innovation Initiative (CEEII) as a one stop shop to facilitate business startups, finance, business ideas, evaluation, monitoring and business development.

Ghana Border Towns Economic Zones
There is the urgent need to optimize the economic potential of the border towns especially the major ones such as the Aflao, Elubo and Paga borders as they are currently largely untapped.

Accordingly, Government will redesign the border towns of Aflao, Elubo and Paga as economic zones for purposes of accelerating growth and development as part of the �Better Ghana Agenda�. Madam Speaker, to this end Government

Will set up the Border Development Agency (BDA) under the Ministry of Local Government to expedite the setting up of land banks and to attract the necessary local and foreign investments to these areas.

The development of the border zones will be driven largely by the private sector whilst the Agency ensures that the development is integrated and consistent with the GSGDA.

It is our firm belief that the opening up of the roads of the eastern corridor coupled with the vision to develop the border areas of this country would facilitate the accelerated growth and development in the programme areas.

Source: Peacefmonline.com