fiscal management to deliver on the aspirations of the Ghanaian people. Inefficiencies and waste in government spending will not be tolerated and there will be strict enforcement of all relevant laws and regulations, especially the new Public Financial Management Act, 2016 (Act 921).
Government will pursue an effective debt management strategy to ensure debt sustainability. We will also adopt global standards of risk and treasury management to ensure accountability in the use of state resources. In addition, we will work to reduce the amount of government borrowing and the resulting crowding out of the private sector. Mr. Speaker, as an example, In the 2016 budget statement, the entire allocation for the Ministries of Roads and Highways, Trade and Industry, Food and Agriculture, Water Resources, Works and Housing, Youth and Sports and Ministry of Transport amounted to a total of GHC2.2 billion. Interest payments in 2016 (GHC10.8 billion) would be nearly 5 times what was allocated to the six key ministries combined. This is how pernicious our debt stranglehold is.
Mr. Speaker, the Budget will set the pace for job creation and accelerated growth by empowering the private sector. To accomplish this, we will shift the focus of economic management from taxation to production. This will reduce the cost of doing business and create a conducive climate for investment and job creation. In this regard, a number of taxes that impede growth will be reviewed, and if necessary, abolished. Government will reverse the recent low growth trend by boosting agriculture and industrial productivity.
Mr. Speaker, the 2017 Budget will set in motion the following key policy priorities and flagship projects:
• establishment of the Infrastructure for Poverty Eradication Project (IPEP). Under this project, every constituency will be allocated the cedi equivalent of US$1 million to combat poverty and improve the lives of rural dwellers and deprived communities;
• implementation of the “One District One Factory” programme;
• establishment of the Zongo Development Fund to support the provision of critical infrastructure and services;
• roll-out of the National Identification Scheme to facilitate the efficient delivery of public and private services and help formalise the economy;
• roll-out free SHS to ensure equal opportunities for all and enhancement of human capital for the country;
• roll-out of a national digital addressing system to provide unique addresses for all properties in Ghana; and
• restoration of teachers and nurses training allowances.
Mr. Speaker, despite significantly missing the 2016 the set targets, I want to assure my fellow Ghanaians, investors and external stakeholders that we are committed to continue with the Extended Credit Facility (ECF) Programme with the IMF. We will, however, review some of the targets and structural reform benchmarks to accommodate our priorities of tax reliefs and other positive measures to boost the private sector.
Mr. Speaker, Government will implement measures that will unleash the creative abilities of Ghanaians, and facilitate increased economic activity which will lead to the improvement in people’s lives.
Mr. Speaker, there are exciting times ahead and there is every good reason to be optimistic that our country is ready to work again. Our government looks forward to a partnership of progress with our honourable colleagues across the aisle.
Mr. Speaker we must as a nation come together to confront our reality. The President did mention nine days ago that he was in a hurry… Mr. Speaker, we must all be in a hurry, we must trigger a national sense of urgency to deal with our deficit. It’s continual presence curtails our capacity to leverage our many opportunities and resources that we have as a nation. Let me stress, Mr. Speaker, we cannot borrow our way out of these challenges. This will be tantamount to creating and sharing poverty, which only leads to a loss of our fiscal sovereignty; so like the President, we must all be in a hurry to grow our way into Prosperity. This budget, Mr. Speaker, seeks to do this.
Mr. Speaker, my presentation today will follow this outline:
• I will present a short brief on how the Global economy performed in 2016, the medium-term outlook and the expected impact on the Ghanaian economy;
• This will be followed by the Macroeconomic Performance for 2016 against the target sets;
• I will then present the President’s Macroeconomic Targets for 2017 and the Medium-Term Targets;
• In addition, I will briefly talk about some key sector deliverables for 2017;
• And then provide you with the key policy initiatives for 2017; and
• I will finally conclude with highlights of the key messages in the Budget.
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