2007 Budget Highlights

The following are the highlights for the 2007 budget statement presented on Thursday to Parliament by Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning.

* Headline inflation declined to 10.5 per cent at the end of the October 2006 from 14.8 per cent at the end of December 2005.* Gross Domestic Product (GDP) growth rate projected at 6.2 per cent based on data through September 2006.*

Interest rates generally declined over the ninth month period to September 2006 but the main policy rate, the Bank of Ghana Prime Rate remained unchanged at 14.5 per cent since January 2006 when it was reduced by 1.0 percentage point to the current level.

* The Cedi depreciated by 9.5 per cent against the British pound and 7.8 percent against the Euro, while a moderate depreciation of 09 per cent was recorded against the US dollar.

* Provisional estimates of the Balance of Payments (BOP) recorded a modest surplus of 77.7 million dollars compared to a deficit of 195.8 million dollars in the same period of 2005.

* Overall fiscal deficit reduced from 6.7 per cent of GDP in 2003 to 2.3 percent of GDP in 2005.* Provisional fiscal out-turn for January to September 2006 shows total receipts of 31,292.7 billion cedis as against the out-turn of 23,723.7 billion cedis registered for the same period during 2005.

* Provisional out-turn for total payments for the first three quarters of 2006, comprising statutory and discretionary payments was 31,929.7 billion cedis as against 23,723.7 billion cedis for the corresponding period 2005.

* Ghana's total medium debt and long term external debt at the end of 2005 stood at 6,347.9 million dollars. This amount had been reduced significantly to 2,143.79 million dollars by the end of September 2006 as a result of a 66 per cent debt reduction under the Multi-lateral Debts relief initiative (MDRI).

* The BoG accumulated a net international reserve of 263.5 million dollars compared with 7.5 million dollars during the same year in 2005.* The agricultural sector is projected at 5.7 per cent indicating a 0.9 percentage shortfall against the target of 6.6 per cent.

* Industrial growth is projected at 7.3 per cent with electricity and water as the major contributing sub-sectors. *In the mining sector, gold is projected to register a growth of about 9.0 per cent.* The manufacturing sector growth is projected at 4.2 showing a slowdown from the 5.0 per cent recorded in 2005.

* The construction sector projected to grow at 8.2 per cent. * Credit to the private sector went up from 77.4 per cent a year ago to 81.6 per cent for the year.* Employment went up by 12.5 per cent.

* The establishment of a Fair Wage Commission to administer the new Comprehensive Pay Structure.
Source:GNA

Government unveils Golden Jubilee Budget

Government on Thursday unveiled the 2007 Budget and Financial Statement dubbed Golden Jubilee Budget saying it was to promote growth and stability for all.

In a foreword to the Budget presented by the Minister of Finance and Economic Planning, Hon. Kwadwo Baah-Wiredu to Parliament, President John Agyekum Kufuor said it would be used as the beginning of the solution to problems of salaries in the public sector.

He said to ensure order and equity all round, the Government was setting up a Fair Wages Commission to oversee the implementation of this new programme.

President Kufuor noted that despite gains made by the Government, there were problems at the labour front, resulting partly from a distorted public sector salary structure, which was also poorly administered.

The Government was, therefore, using the Dudget to begin the implementation of a new comprehensive public sector pay reform that emphasises equal pay for work of equal worth.

"The broad objective is to aim for wage increases in line with productivity gains, cost effectiveness and efficiency."President Kufuor quoted an adage which says that "Rome was not built in a day, and said: "Today, we are laying the first block for a more rational salary structure and administration.

"He said the Government had realised, however, that this new system would have to be phased in, 93but we will continue to implement the social policies and programmes that will accelerate the growth we need to achieve our target.

President Kufuor said the public sector reforms that were being pursued would be sustained to boost private sector development through an enhanced public services delivery, in order to deepen the public-private sector partnership for accelerated growth.

"I am, therefore, appealing to the nation and all its sectors to hold fast and rally together so that we pursue a collective vision in the belief and confidence that Ghana will succeed in becoming a middle income country by 2015.

"President Kufuor said the sacrifices the nation had made over the past couple of years had yielded the desired positive results, such that the economy was resilient, even in the face of rising crude oil prices, adding that Government remained committed to those polices that have brought the nation this far.

"On the eve of our 50th anniversary as a nation, I am happy that our economy is vibrant and the aspiration of attaining the status of a middle-income country in the next decade is within our reach.

"With vigorous infrastructural development, the introduction of the National Health Insurance Scheme, Capitation Grant, Free Bussing and the School Feeding Programme for children and the establishment of financial schemes for micro, small and medium sized enterprises, we have made significant gains towards the Millennium Development Goals (MDGs).

Indeed, we are likely to attain some of these goals before the UN deadline."President Kufuor said economic growth had exceeded targets for three consecutive years and this year, the recorded growth of 6.2 per cent exceeded the target of 6.0 per cent, and for next year, 6.5 per cent was the confident forecast.

Progress made is recognized by the international community: Ghana has been rated the most peaceful nation in Africa, given a B+ sovereign credit rating, ranked the fastest reforming nation on the Continent and ninth in the world in doing business.

Source :GNA

Platinum group Lonmin launches bid for AfriOre of South Africa

The British group Lonmin, the world's third leading platinum producer, said Wednesday it had launched a friendly takeover bid worth 441 million dollars (344 million euros) for its South African rival AfriOre.

The deal, already approved by AfriOre management, needs approval from regulatory authorities and should be completed by the end of January, Lonmin said in a statement.

AfriOre holds a 74 percent stake in the Akanani field in the Bushveld region of northwest South Africa, which has reserves of 33.7 million ounces of platinum group metals.

Dakar customs seize 42,000 fake Nigerian DVDs, CDs

Some 42,000 counterfeit DVDs and CDs transported from Nigeria by three Senegalese traders were seized at Dakar international airport, Senegalese customs officials said Wednesday.

"42,000 counterfeit DVDs and CDs were seized on Saturday at the Dakar airport. They were concealed in wrapped cartons," said Mamadou Ba, spokesman for the Senegalese customs office.

According to Ba, the fake DVDs and CDs, coming from Nigeria and valued at some 60 million CFA francs (around 92,000 euros, 120,000 US dollars), were seized from three Senegalese people and were bound for the Senegalese market.

Some of the seized DVDs included pornographic films, Ba said.

This latest incident comes five days after a conference in Dakar on fighting counterfeit crime, organized by the Senegalese government and the World Customs Organization.

Armand Jean-Jacques Nanga, director general of Senegal's customs office, made a forecast at the seminar that 2006 is set to become a record year for counterfeit products.

Ghana proposes to host headquarters of ICCO

Mr Jan Vingerhoets, Executive Director of International Cocoa Organisation (ICCO) has held discussions with officials of Ministry of Finance and Economic Planning on Ghana’s proposal to host headquarters of the organisation.


A statement issued in Accra on Wednesday and signed by Mrs Pauline Adobea Dadzawa, Public Affairs Manager of Ghana Cocoa Board (COCOBOD) said Mr Vingerhoets also held discussions with management of the company.


It said discussions with the management centred on activities and projects of mutual interests including the final Cocoa By-products report, a Round Table on Sustainability, the planned International Conference on the health and nutritional aspects of cocoa and chocolate.


The statement said Mr Isaac Osei, Chief Executive of COCOBOD expressed appreciation for Mr Vingerhoets’ visit and reiterated Ghana’s support for ICCO’s interest in the cocoa industry and gave the assurance that Ghana would participate in ICCO’s programme for growth in the industry.


It said Mr Vingerhoets on a week’s visit to Ghana also held discussions with the President of Licensed Cocoa Buying Agencies and Haulers.


He would visit some cocoa processing factories in Ghana, Cocoa Research Institute of Ghana (CRIG) at New Tafo in the Eastern Region and meet some cocoa farmers.
GNA

Geographic Information System Day launched

An international Geographic Information System (GIS) day was launched on Wednesday in Accra with a call on government agencies to use GIS tools effectively to solve the numerous problems facing the country.

GIS is a technology capable of integrating, storing, editing, analyzing and displaying geographically referenced information, which is useful to society.
The day, which was under the theme "Towards the Creation of National Knowledge GIS Database", was organized by GIS stakeholders in collaboration with Ghana-India Kofi Annan Centre of Excellence in Information Communication and Technology.


Ms Joyce Aryee, Chief Executive Officer of the Ghana Chamber of Mines, made the call when she chaired the launch of the day and said GIS as a system for creating and managing spatial data and associated attributes when properly used would change the face of the country from poor to rich.


She said Ghana abounded in rich natural and human resources and "I do not see why we should be experiencing poverty and all the problems associated with it".


The existence of a reliable information system is the key to planning resource mobilization and distribution; management of a country and its resources, its security, border control, banking, construction, mining, housing, communication, health etc.

Ms Aryee called on GIS practitioners to collaborate with other institutions to use the available resources to maximize the socio-economic development of the nation as well as the West Africa Sub-Region.


"Collaboration is very essential for better management of information and knowledge to help each and every one of us to know what role to play", she explained.
She urged practitioners to develop a map that would translate planning in the areas of agriculture, mining, real estate development and forest resources for better management to avoid conflicts.


The panellists, who spoke on how GIS could be used in the areas of mineral exploration; health; human resource development; surveying and mapping, and harvesting of underwater trees in the Volta basin called for the need for all institutions to use GIS for development and creation of wealth.
GNA

Leaders of religions to preach peace on Thursday

Representatives from the Catholic, Protestants, Jewish and Islamic faiths would proclaim messages of peace at various centres in the country simultaneously on Thursday, November 16, 2006.

The group started speaking in 120 cities in America and Japan as part of what has become known as a world tour, where leaders of various religions go round demonstrating love for all humanity and calling on people to come together to bring peace.

Evangelist Eselecha Bill Forcha, Representative of Universal Peace Federation, a non-governmental organization that recognized the importance of faith in God as a central component for peacemaking, announced this at a press conference on Wednesday.


He said the group would speak at Amasaman; La; Abokobi; Ofankor; Sukura and Weija, all in the Greater Accra Region as well as Juapong and Koforidua in the Eastern Region.


He explained that the world tour was initiated by Dr Sun Myung Moon, a servant of God, who went round over 120 cities with his family proclaiming peace.


Dr Moon, who founded the Universal Peace Federation in New York City on September 12 2005 always prayed sincerely that the United Nations would be an institution of peace and would uphold God's will for the realization of eternal peace, Evangelist Forcha said.


"Today heavenly fortune has visited us. Let us welcome and hear from these ambassadors of peace, clergies and apostles of our time sent to all the corners of the world," he said.


Evangelist Forcha said the group went through Europe and were now in Africa but would finally end their tour in South America. Bishop Abraham Annor, member of Universal Peace Federation, noted that peace should start from the family explaining that if there was peace in the families it would affect the society.


He advised that marriages should also be God centred to enable parents to train their children in a way that would yield peace in the society in the future.
GNA