The nation’s journey for 2008 and beyond has been set on solid ground for onward economic growth and human development, following the prudent economic and monetary policies put in place by The Gambia government over the recent years.

The 2008 budget estimates, read at the National Assembly, on Friday, by the Secretary of State for Finance and Economic Affairs, Mousa Bala-Gaye, outlined the revenues, recurrent and development expenditures projections of the government.

Revenues

The Budget projects total domestic revenue at D3,771 million for 2008. Revenues to keep pace with, or even surpass, this estimate will be generated mainly from direct and indirect tax, and non-tax revenues and grants. There is also projected capital revenue of D406 million.

"The 2008 Budget projects total domestic revenue at D3,771 million, which represents a 14 per cent increase over the 2007 budget figure of D3,322 million. Total domestic revenues are made up of a direct tax of about 27 per cent, or D1,017 million, and indirect tax of about 62 per cent, or D2,345 million, and the remaining D408 million, or 11 per cent, is from non-tax revenues and grants. Capital revenue is estimated at D406 million," SoS Gaye stated.

Expenditure

Total expenditure and net lending for 2008 is projected at D5,205 million, which represents a 15 per cent increase over the D4,512 million in 2007.

According to the budget presented by the Finance and Economic Affairs SoS, the expected availability of both HIPC (Heavily Indebted Poor countries) and MDRI (Multilateral Debt Relief Initiative) debt relief resources, and also privatisation proceeds from the sale of 50 per cent shares in GAMTEL and GAMCEL, have provided the opportunity to finance additional expenditures in both capital expenditure and current expenditure of 21 per cent and 11 per cent respectively.

"Consequently, recurrent expenditure is projected to increase from D2531 million in 2007 to D2812 million in 2008, while capital expenditure is estimated to rise from D1425 million in 2007 to D1643 million in 2008," Hon. Bala-Gaye said.

He continued: "The total recurrent expenditure figure of D2812 million comprises of personnel emoluments of about D918 million, or 32 per cent of the recurrent budget. Other charges of D1143 million, or 40.6 per cent, interest payments on the external and domestic debts account for D622 million, or 22 per cent.

Capital expenditure and net lending amount to D2,333 million, of which D1024 million is from loans, D669 million from grants, D336 million from Government Local Funds (GLF), and D110 million from Net Lending."

The budget also states that for 2008, poverty reducing expenditures are projected at D1480 million, or 46 per cent.

"The budget is projected to have a deficit of D730 million or 4.2 per cent of GDP," he said, but added that this deficit "is fully financed by net external borrowing of D826 million, and a net domestic debt repayment position of D96 million".

In his concluding remarks while presenting the budget, SoS Bala-Gaye said: "Behind the words and numbers in this budget speech are policies and also decisions that reflect the directions government has set for itself, and for the country, and also commitments made to reduce poverty and attain the Millennium Development Goals. Taken together, these will help shape the nation’s journey for 2008, and beyond."

After recounting the "brilliant successes" of the Gambian economy in 2007, which registered an impressive 7 per cent growth rate, domestic-revenue-to-GDP ratio of 22.1 per cent, a budget surplus of 2.6 per cent of GDP, an inflation rate of 5%, international reserves of 5.5 months of import cover, and a strong and stable Dalasi, the Secretary of State for Finance and Economic Affairs said the aim of President Yahya Jammeh’s government is "to use the fruits" of the present economic successes to sow the seeds of future achievements.

"Government’s goal is to use the fruits of our present successes to sow the seeds of future achievements – to employ the dividends of fiscal, monetary and economic strength to keep on building an outstanding vibrant economy and society, with an enviable life for all Gambians. Government’s goal to reduce poverty significantly, and to meet all the Millennium Development Goals depends on maintaining macroeconomic stability, and sustaining economic growth," Hon. Bala-Gaye said.

He added: "Achieving this ultimate goal can be made much easier by all Gambians, by merely changing attitudes, and the ways we do and view things, by going back to the land, by working harder with much commitment and devotion, and for all Gambians to take a dedicated, committed and proactive role in nation building. Government has now set the stage, and it is up to all Gambians to take advantage of the myriad of opportunities that sustained economic growth has brought to this nation."