Ghana parliament approves $10.7bn 2012 budget

ACCRA: Ghana parliament approved a 17.5 billion cedis ($10.7 billion) budget for 2012 on Tuesday, aimed at developing the West African nation's infrastructure in order to fuel economic growth and job creation.

The government of President John Atta Mills has said the budget, which saw a 12.5 percent increase from the previous year, will tackle poverty in a 2012 election year but will keep public finances in check with higher state revenues.

The budget, which was presented to parliament last month, titled the 'Infrastructure Development for Accelerated Growth and Job Creation' focused on key areas such as road and infrastructure development and agriculture.

Spending next year will rise to 17.5 billion cedis, slightly outpacing an increase in government revenues to 15.6 billion cedis, according to the detailed 2012 budget statement.

Ghana's minority in parliament remained silent during the vote that was won, with few amendments made to the initial statement.

Finance Minister Duffuor said the approval of the budget was a positive step for Africa's newest oil producing nation.

"It is a budget that will improve on the infrastructure and development of our country. Over the year we have consulted economists and have realised that we need a strong infrastructure base to help our economy grow," Duffuor said.

Minority leader Osei Kyei Mensah Bonsu Deputy said they approved of the budget but thought the government had failed to provide accurate cost assessments for particular projects.

"If you are looking at the budget, any good budget is underpinned by characteristics it should be comprehensive and accurate," said Bonsu. "The government is keeping single digit inflation but it is failing to tell us why."

Ghana's inflation, which stood at 8.56 percent in October, is seen averaging 8.7 percent next year to finish at 8.5 percent by next December.

Oil cash from the country's Jubilee offshore field and disbursements from a Chinese Development Bank loan will allow the West African state, which is also the world's second-largest cocoa producer, to embark on major infrastructure improvements.