Thank you, Mr. Speaker, for giving me the opportunity to contribute to the debate. Mr. Speaker, whether a budget is one of hope or not, to me, I think that may depend on policy initiatives, interventions and measures that are likely to improve the quality of life of the majority of the people in a country.
In our circumstance, what we find is that policy intervention measures should reflect in addressing rural problems. This is because in this country, about two- thirds of the people find themselves in the
rural sector, so if you have a budget that is likely to address rural problems, in effect, you are saying that the budget is good.
In this Budget, we can find that a number of new measures or additions have been made which of course are likely to address the problems in the rural sector.
Mr. Speaker, with your indulgence, I would first want to take on social infrastructure and income-generating measures that are contained in this Budget. And in this Budget, apart from the usual things about feeder roads, about 26,400 kilometres of road would be covered. Apart from health delivery measures and those things, this Budget contains additional things which are rural biased. First of all, you would find that District Assemblies are going to be assisted with ICT in order to improve on ways of finding solutions.
If you look at our District Assemblies for instance, most of them do not have computers and are not actually prone to using database and decision support systems. As a result, data management is very unreliable so in this Budget, if Government is going to assist District Assemblies to actually come of age with ICT, it is in the right direction. We are aware that unreliable data management affects planning both at the district level and at the national level.
Secondly, if you look at this Budget, you will see that though in the 2004 Financial Year, the Government actually, looking at the plight of the people, decided to assist fifty-three deprived districts by asking them not to pay school fees and other levies, we are told that this has been actually extended to cover all the districts in the country. And this is an indication that the Government is committed to the plight of the people.
Another addition that I think is good for people in the rural sector is the school feeding programme. The Government, in the Budget, has told us that it has introduced the school feeding programme on pilot basis and this is going to cover five hundred thousand people, and over the next five years this would be extended to cover one million and seven hundred people. I think that this measure is also rural-biased and it is going to help increase enrolment in the rural schools.
Then if you come to income-generating activities, this Budget Statement contains all the usual things that we see in every Budget Statement that has been presented in this country. But in addition, what is very important here is that it says agriculture is going to be modernized, based on rural development. I just want to repeat this one. It says agriculture is going to be modernized, based on rural development. And we know that whenever agriculture is modernized, based on rural development, it means we in a country like Ghana, where we have a large agricultural sector, are on the path to development.
Mr. Speaker, all of us know that in this country, about 60 per cent of the people are actually engaged in agriculture; and agriculture also contributes about 36 per cent of the Gross Domestic Product (GDP). So if the Government is going to modernize agriculture based on rural development, then I think that we are on the way to development.
Honestly, in countries where a large sector of the economy is agriculture- based, the sure way to develop is agricultural growth; and since this Budget is going to modernize on that basis, I feel that this Government is on the right track.
Again, it is very refreshing if you look at the amount of money that the Government is going to spend on the Ghana Poverty Reduction Strategy (GPRS) - a handsome sum of ¢7,694.4 billion. This money represents 31 per cent of the total amount that the Government is going to spend. All this money is going into poverty reduction. You will find that if the Government is spending so much money on poverty reduction, it is an indication that, indeed, the Government is prepared to reduce poverty in this country. And you find that it is a good measure, because rural poverty is very, very high in this country.
Having said this, I would say that looking at these measures, all that we can say is that, indeed, the New Patriotic Party (NPP) Government is bent on reducing poverty. So I find this Budget more rural-biased than the urban-biased budgets, which have characterized development projects in this country and have impoverished the rural sector.
Having said that, Mr. Speaker, I just want to make some comments. I think that under the Ghana Poverty Reduction Strategy, it is important for us to actually know that the District Assemblies have been asked to use a percentage of their Common Fund to be given as loans to individuals - the vulnerable and the poor. All of us here are aware that most of the beneficiaries have not been able to repay this money, either because they were not able to apply the monies that they were given economically, or when they applied those monies, they could not have returns.
I am inclined to think that we must find some ways of coming out with regulations in order to improve these kinds of loans. Indeed, we need to support the poor and the vulnerable but we have to help them
in such a way that they would see the need to repay. As a result of high rates of default, most of the District Assemblies have even stopped giving loans; and I think that it is not good enough. What I would suggest is to try and introduce a kind of monetary system that would make sure that beneficiaries of these loans would be able to pay.
If you look at the way that we actually come out with income-generating activities and social infrastructure in the rural sector, it looks as if it does not have any kind of balance. Yet if we are fighting poverty, we need to have a kind of balance between social infrastructure and income- generating activities. We know that social infrastructure would serve as linkages for further development whilst income- generating activities would empower beneficiaries to be able to acquire the goods and services that they need. But we need to have a kind of balance so that one would not rise above the other; and I would think that District Assemblies should develop a kind of knowledge system that would help them to do some of these activities and other operations.
In order to develop some kind of knowledge system to come up with some of these things, I would suggest that District Assemblies or the Ministry of Local Government and Rural Development should revisit the idea of modern strategy of development where lessons gained from selected Assemblies or areas can be used as a knowledge system to develop others.
I believe that if we are able to select some of the deprived districts and the Municipal Assemblies and give them a special package of development based on their potential, or improvements, we can then come out with the kind of knowledge system that would help us to actually replicate some of these things in other districts.