The Swiss Government on Monday signed an agreement with the Ministry of Finance for the release of nine million Swiss Francs (about 7.95 million dollars) in a form of a Multi-donor budget support to help Ghana reduce poverty and enhance economic growth.
The amount is part of a 27 million-Swiss Francs (about 24 million dollars) Multi-donor budget support, from the Swiss government to be released yearly between 2009 and 2011.
Mr Nicolas Lang, Swiss Ambassador to Ghana, who announced this during the signing of the agreement, said the amount was a non-refundable grant based on economic performance.
The support is expected to contribute directly to government's budget with the aim to help increase spending in areas that will reduce poverty.
He said Switzerland would support Ghana in areas of enhancing private sector development, energy sector infrastructure, trade sector development as well as macroeconomic stability and public financial management reforms.
Mr Lang announced that Switzerland was co-chairing the Multi-donor budget support development partners group from June 2009 to June 2010 and said his country will promote more partnership.
The Multi-donor budget support is an official development assistance arrangement under which development partners collectively provide support to government's budget to help implement the Ghana Poverty Reduction Strategy II.
He said Ghana still had many challenges, especially with the global financial crisis and the agreement signed was part of measures by the Swiss government to help Ghana deal with the financial crisis.
"Ghana is already a very important focus of Switzerland's development assistance and is considered one of its seven worldwide priority countries in terms of economic development cooperation which is assisted through the Swiss State Secretariat for Economic Affairs," the Ambassador said.
Mr Lang urged Government to address internal challenges to help to achieve poverty reduction and economic growth.
Dr Kwabena Duffuor, Minister of Finance, who signed the agreement on behalf of government, lauded the Swiss government's appreciation of the Multi-donor budget support system as an efficient channel for offering donor assistance.
He expressed gratitude to the Swiss government for their continual support and pointed out that Ghana was currently receiving an annual grant of 2.5 million dollars, covering the period 2006 to 2009 from the Swiss government for use by the Electricity Cooperation of Ghana for management support services and extension of electricity to poor people in small towns in the Central Region.
Dr Duffuor said the Swiss Secretariat for Economic Cooperation was also considering a proposal for funding the Public Procurement Authority to the tune of 2.2 million dollars to cover the assessment of procurement entities and sustainable public procurement programmes.
"Government is committed to the judicious use of all resources mobilized under the Multi-donor budget support programme to finance the budget," he said, adding that the Public Finance Management System, the Controller and Accountant General's Department and Ghana Audit Service had been improved to ensure efficient and timely budget reporting.
The Finance Minister said the tax agencies were also being strengthened to mobilize local resources for development.