Kumasi, July 29, GNA - Mr Yaw Osafo-Maafo, Minister of Finance and Economic Planning, has said the government has made significant inroads in the fiscal, monetary and macroeconomic performance of economy in the first half of the year.
He said robust revenue growth surpassing target levels and moderately paced government spending relative to budgeted levels, have resulted in significant reduction of public sector domestic borrowing from 3.50 percent of Gross Domestic Product (GDP) in June 2002, to the equivalent of 1.1 percent GDP.
Mr Osafo-Maafo announced this at the mid-year review meeting of Regional Ministers in Kumasi on Tuesday.
He said total government revenue, including grants amounted to 7,601.3 billion cedis, exceeding the budgetary target of 7,045.5 billion cedis for the first half of the year and 63.5 percent higher than its level for the same period last year.
Total expenditure was 7,716.0 billion cedis below the targeted level of 8,249 billion cedis for the first half of 2003.
Mr Osafo-Maafo said fiscal accounts registered a domestic primary surplus of 213.0 billion cedis and an overall deficit of 114.6 billion cedis compared with projected deficit levels of 1,204.2 billion cedis. He said exports of the country's major commodities such as cocoa, gold and other minerals had recorded significant increases beyond their projected levels for the half year.
The Minister said the improved external payments position in the first half of the year had resulted in significant increases in the Gross International Reserves position of the country to over 2.5 months of import cover, compared with the projected 2.3 months of import cover at the end of 2003.
Mr Osafo-Maafo indicated that foreign inward remittances through the deposited money banks amounted to some 953.4 million dollars in the first half of the year, representing a 50 percent increase over the levels in 2001.
He, however, said while government finances improved significantly by the end of the first half of 2003, continued execution of the budget framework and the full disbursement and steady application of donor inflows would be important to achieve the zero net domestic financing targets.
Mr Osafo-Maafo announced that the second round disbursement of the HIPC resources would be made to the Metropolitan, Municipal and District Assemblies (MMDAs) in August this year.
Mr Kwadwo Agyei-Darko, Minister of Local Government and rural Development, said the financial memoranda for Local and Urban Councils, which had been in existence since 1961 (Act 54) had been reviewed and updated.
He said the new financial memoranda for MMDAs provided a general framework for the conduct of the financial business and control mechanisms for income and expenditure in all the local government units. Mr Sampson Kwaku Boafo, Ashanti Regional Minister, appealed to his colleagues to evolve better mechanisms to ensure speedy implementation and completion of development projects in their respective regions. He also appealed to them to take the issue of the environment, especially water resources, very seriously since the survival of mankind depended on it.
Kumasi, July 29, GNA - Mr Yaw Osafo-Maafo, Minister of Finance and Economic Planning, has said the government has made significant inroads in the fiscal, monetary and macroeconomic performance of economy in the first half of the year.
He said robust revenue growth surpassing target levels and moderately paced government spending relative to budgeted levels, have resulted in significant reduction of public sector domestic borrowing from 3.50 percent of Gross Domestic Product (GDP) in June 2002, to the equivalent of 1.1 percent GDP.
Mr Osafo-Maafo announced this at the mid-year review meeting of Regional Ministers in Kumasi on Tuesday.
He said total government revenue, including grants amounted to 7,601.3 billion cedis, exceeding the budgetary target of 7,045.5 billion cedis for the first half of the year and 63.5 percent higher than its level for the same period last year.
Total expenditure was 7,716.0 billion cedis below the targeted level of 8,249 billion cedis for the first half of 2003.
Mr Osafo-Maafo said fiscal accounts registered a domestic primary surplus of 213.0 billion cedis and an overall deficit of 114.6 billion cedis compared with projected deficit levels of 1,204.2 billion cedis. He said exports of the country's major commodities such as cocoa, gold and other minerals had recorded significant increases beyond their projected levels for the half year.
The Minister said the improved external payments position in the first half of the year had resulted in significant increases in the Gross International Reserves position of the country to over 2.5 months of import cover, compared with the projected 2.3 months of import cover at the end of 2003.
Mr Osafo-Maafo indicated that foreign inward remittances through the deposited money banks amounted to some 953.4 million dollars in the first half of the year, representing a 50 percent increase over the levels in 2001.
He, however, said while government finances improved significantly by the end of the first half of 2003, continued execution of the budget framework and the full disbursement and steady application of donor inflows would be important to achieve the zero net domestic financing targets.
Mr Osafo-Maafo announced that the second round disbursement of the HIPC resources would be made to the Metropolitan, Municipal and District Assemblies (MMDAs) in August this year.
Mr Kwadwo Agyei-Darko, Minister of Local Government and rural Development, said the financial memoranda for Local and Urban Councils, which had been in existence since 1961 (Act 54) had been reviewed and updated.
He said the new financial memoranda for MMDAs provided a general framework for the conduct of the financial business and control mechanisms for income and expenditure in all the local government units. Mr Sampson Kwaku Boafo, Ashanti Regional Minister, appealed to his colleagues to evolve better mechanisms to ensure speedy implementation and completion of development projects in their respective regions. He also appealed to them to take the issue of the environment, especially water resources, very seriously since the survival of mankind depended on it.
