Finance Minister Seth Terkper has clarified that the 700 million Dollar loan being secured by the Ghana National Petroleum Corporation (GNPC) is to fund infrastructure activities of the GNPC.

The GNPC has come under public fire for attempting to secure the loan without Parliamentary approval.

Aside of that, many Ghanaians have questioned GNPC’s ability to manage the fund prudently while some have accused the Corporation of attempting to secure the money for government’s use.

But delivering the 2015 budget and economic statement to Parliament on Wednesday, Terkper stated that the loan is not a government of Ghana loan.

He added that the loan will help develop gas infrastructure which will in the final analysis reduce gas prices in Ghana.

The Finance Minister added that for the year under review, the GDP was 6.9 percent down from the projected 7.1 percent.

He added that the Agricultural sector had the highest growth rate of 5.3% followed by the services sector with a growth rate of 4.6%. Mr. Terkper also stated that GDP growth without contribution from oil for 2015 will be 4.4 percent.

Inflation was 16% in September 2014. The rise in inflation reflects the sharp increase in fuel prices as well as utility prices.

Terkper also in the 2015 budget presentation stated that Government is ready to address short-term challenges facing the economy.

He stated that the medium-term objective is to reduce fiscal deficit to 3 per cent of GDP by increasing revenue through taxes.  According to the Finance Minister, Government intends to complete its implementation of the policy on VAT.