BUDGET: Private sector made key vehicle for accelerated growth

Accra, Nov. 16, GNA - Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning said government's strategy is to make the private sector the key vehicle for accelerated growth and development as outlined in the Ghana Poverty Reduction Strategy (GPRS II).

"The strategic direction of the GPRS II is to ensure accelerated growth of the economy through continued macroeconomic stability, a vibrant private sector, and vigorous human resource development underpinned by deepening good governance and civic responsibility." Presenting the government's fiscal policy for 2007 in Parliament on Thursday, Mr Baah-Wiredu said sustained environmental protection through re-forestation and the Millennium Development Goals (MDGs) would continue to lead the drive towards the achievement of a competitive private sector.

In this regard, he said, government's policy would continue to focus on the development of the rural economy through the modernization of agriculture led by a vibrant and competitive private sector and enhanced infrastructure development.

He said the programmes and policies of the various Ministries, Departments and Agencies (MDAs), which constituted the implementation arm of all government policies, have been guided by the government's development agenda as outlined in the GPRS II.

Mr Baah-Wiredu said the GPRS II identified three thematic areas including the private sector competitiveness; human resource development; and good governance and civic responsibility. He said the main goal of the private sector competitiveness was to remove a number of bottlenecks that hamper the agricultural sector in the medium term and the industrial and other sectors over the long term.

"The aim of the human resource development is to ensure the development of a knowledgeable, well-trained and disciplined labour force with the capacity to drive and sustain private sector-led growth." Mr Baah-Wiredu said good governance and civic responsibility aimed at empowering state and non-state actors to participate in the development process and to collaborate effectively in promoting peace and stability.

He said the selected policies; programmes and activities of the MDAs were all geared towards addressing the structural constraints at the policy and institutional levels that impede increased productivity, the adoption of new technology and competitiveness of the private sector in relation to agriculture, industry and the services sectors. The Minister said the focus of the MDAs activities in 2007 would be on infrastructure development, especially in energy, roads, telecommunication, water supply and housing, implementation of right incentive framework for the public sector employees, as well as effective decentralization for enhanced service delivery.