In his 2003 National Budget speech to the National Assembly Friday, he said this projection takes account of the positive developments expected in sugar and rice, and the outlook for growth in the world economy.

Sugar production is projected to grow by 2.9 per cent to 340,552 tonnes, continuing the upward trend that has been observed over the last three years, he said.

"The improvements and expansion that have been undertaken under the Agricultural Improvement Plan will continue to redound to the benefit of the industry. Rice output is expected to increase by three per cent to 296,388 tonnes, reversing the almost 11 per cent decline in 2002", the minister said.

The ongoing reorganisation and restructuring of the industry, increased acreage under cultivation and favourable weather conditions would have a positive impact on production and productivity, he added.

He reported that based on the additional capacity and the increased demand for poultry meat, the livestock sector is expected to grow by five per cent. Other agriculture is projected to increase by three per cent.

Kowlessar said the mining and quarrying sector is programmed to fall by 7.1 per cent, reflecting declining gold production at Omai Gold Mines Limited and the delayed recovery in the bauxite industry.

Declaration of raw gold is projected to decline by 9.3 per cent to 414,105 ounces, with the output of Omai and the small miners declining by 11.1 per cent and 4.3 per cent respectively, he said.

Output of diamonds is expected to remain flat and bauxite production is budgeted at 1,613,000 tonnes, a reduction of 1.1 per cent, he said.

According to the Finance Minister, robust growth of 4.7 per cent is expected in the engineering and construction sector, led by the implementation of major projects in the Public Sector Investment Programme and the growth in private construction, especially in housing, where the Government has distributed thousands of house lots.

The manufacturing sector is projected to grow by 3.0 per cent, continuing the positive growth of 2002, he said.

Under an Italian Line of Credit, "we will commence procurement of over $900 million worth of heavy earth moving equipment to accelerate the drainage and irrigation (D&I) programme", he said.

He reported that under the $1 billion Agricultural Sector Support Project financed by the Inter-American Development Bank, the Government will conduct design and feasibility studies of existing and new D&I areas, reorganise the land management and administration systems, and undertake aerial, mapping, geodetic and cadastral surveys.

The Poor Rural Support Project also provides resources for the rehabilitation of D&I infrastructure in the project's catchment area as well as the upgrade of support services and facilities, he said.

Other D&I works programmed for this year are:

* the installation of 2 diesel pumps at Mibicuri and Dawa;

* the construction of sluices at Belfield, Westbury and Leguan;

* the rehabilitation of a sluice at Golden Fleece and canals at Manarabisi; and