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I Table of Contents Price Developments A Brighter Future Table of contents SECTION ONE: INTRODUCTION........................................................................ 1 SECTION TWO: WORLD ECONOMIC DEVELOPMENTS AND OUTLOOK............. 12 The World Economy........................................................................................12 SECTION THREE: DEVELOPMENTS AND OUTLOOK IN THE WEST AFRICA SUB- REGION 19 The West African Economy.........................................................................19 The West African Monetary Zone (WAMZ)...............................................22 SECTION FOUR: MACROECONOMIC PERFORMANCE ........................................ 24 Overview of Economic Performance .......................................................24 Receipts........................................................................................................27 Payments .....................................................................................................28 Real Sector Developments ..........................................................................33 Fiscal Developments and Outlook for 2007 ...............................................39 Receipts........................................................................................................39 Payments .....................................................................................................42 Developments in Public Debt ......................................................................48 Monetary Developments .............................................................................56 Price Developments........................................................................... 58 Producer Price Index (PPI)............................................................... 59 Exchange Rate Developments ......................................................... 60 External Sector Developments...................................................................61 SECTION FIVE: MACROECONOMIC FRAMEWORK FOR THE MEDIUM-TERM ... 64 Medium-Term Macroeconomic Framework ...........................................65 Structural Policies ........................................................................................68 SECTION SIX: SECTORAL PERFORMANCE AND OUTLOOK............................. 79 Private Sector Competitiveness ......................................................................79 Ministry of Food and Agriculture.................................................................80 i A Brighter Future Cocoa Industry ............................................................................... 97 MINISTRY OF LANDS, FORESTRY AND MINES........................................108 MINISTRY OF ENERGY..............................................................................121 MINISTRY OF TRADE, INDUSTRY, PSD & PSI.........................................139 MINISTRY OF TOURISM AND DIASPORAN RELATIONS .........................146 MINISTRY OF FISHERIES..........................................................................150 MINISTRY OF WATER RESOURCES, WORKS AND HOUSING .................155 MINISTRY OF TRANSPORTATION ............................................................169 MINISTRY OF COMMUNICATIONS ...........................................................185 MINISTRY OF HARBOURS AND RAILWAYS .............................................194 MINISTRY OF AVIATION...........................................................................197 HUMAN RESOURCE DEVELOPMENT.............................................................204 MINISTRY OF EDUCATION, SCIENCE AND SPORTS ...............................205 MINISTRY OF MANPOWER, YOUTH & EMPLOYMENT ..............................227 MINISTRY OF HEALTH...................................................................................236 MINISTRY OF WOMEN AND CHILDRENS AFFAIRS....................................250 GOOD GOVERNANCE AND CIVIC RESPONSIBILITY................................................ 255 MINISTRY OF LOCAL GOVERNMENT, RURAL DEVELOPMENT AND ENVIRONMENT.............................................................................................257 MINISTRY OF PARLIAMENTARY AFFAIRS................................................281 OFFICE OF PARLIAMENT ..........................................................................283 MINISTRY OF THE INTERIOR...................................................................286 JUDICIAL SERVICE ....................................................................................300 PUBLIC SERVICES COMMISSION .............................................................302 THE MINISTRY OF FOREIGN AFFAIRS, REGIONAL COOPERATION AND NEPAD........................................................................................................305 ii A Brighter Future GHANA AUDIT SERVICE............................................................................311 MINISTRY OF JUSTICE AND ATTORNEY GENERAL’S DEPARTMENT......314 MINISTRY OF DEFENCE ............................................................................319 MINISTRY OF PUBLIC SECTOR REFORM .................................................324 THE ELECTORAL COMMISSION................................................................328 COMMISSION ON HUMAN RIGHTS AND ADMINISTRATIVE JUSTICE....332 MINISTRY OF CHIEFTAINCY AND CULTURE ...........................................335 MINISTRY OF INFORMATION AND NATIONAL ORIENTATION ..............337 NATIONAL COMMISSION FOR CIVIC EDUCATION..................................340 NATIONAL DEVELOPMENT PLANNING COMMISSION.............................342 NATIONAL LABOUR COMMISSION...........................................................347 NATIONAL MEDIA COMMISSION..............................................................349 Ministry of Finance and Economic Planning.............................................351 OFFICE OF GOVERNMENT MACHINERY...................................................376 DISTRICT ASSEMBLIES COMMON FUND (DACF) ADMINISTRATOR ......397 SECTION SEVEN: POVERTY REDUCTION EXPENDITURES AND PROGRESS TOWARDS ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS ......................... 398 Government Spending on Poverty Reduction Expenditures in 2007 399 Progress Towards the Millennium Development Goals........................400 Utilisation of Multilateral Debt Relief (MDRI) Funds ...............................411 Spending on Poverty Reduction..............................................................412 SECTION EIGHT: POLICY INITIATIVES............................................................ 413 Private Sector Development ....................................................................413 Improving Regulatory Structures for Doing Business..............................413 Energy Sector ............................................................................................414 National Transportation Policy ..................................................................415 Financial Sector .........................................................................................416 iii A Brighter Future Development of the Bond Market.............................................................418 Enhancing Access to Agricultural Finance ................................................418 National Switch and Biometric Smartcard Project ...................................419 Promoting Financial Literacy.....................................................................421 Promoting Long Term Investment by Insurance Companies..................421 Fiscal Responsibility Act ............................................................................422 Special Initiative on Sustainable Development of Northern Ghana ........424 Managing Future Oil Resources ................................................................424 Establishment of a Stabilisation Fund.......................................................425 Excise Tax on Phone Airtime ....................................................................426 Easing the Burden of Importing Vehicles.................................................427 Tax on Stated Capital for Companies .......................................................427 Climate Change and Preservation of Environment ..................................428 SECTION NINE: IMPLEMENTATION CHALLENGES.......................................... 429 SECTION 10: CONCLUSION ........................................................................ 432 LIST OF CONTRIBUTORS INTO THE 2008-2010 BUDGET STATEMENT AND ECONOMIC POLICY 435 LIST OF TABLES iv A Brighter Future Table 1: Percentage Growth in Agriculture........................................................... 34 Table 2: Share of Agriculture in GDP and Contribution to overall growth ( in per cent) ....................................................................................................................... 35 Table 3: Growth in Industry ( in per cent) ........................................................... 36 Table 4: Industry’s Share of GDP and Contribution to Overall Growth..................... 36 Table 5: Growth in Services ( in per cent)............................................................ 37 Table 6: Share of Services in GDP and Contribution to Overall Growth ( in per cent) 37 Table 7: Currency Composition in Percent of Total External Debt Stock (2000-2007) 50 Table 8: Cocoa Output (2000-2006).................................................................... 97 Table 9: Cocoa Main Crop Purchases..................................................................
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