Govt. Projects Expenditure at 15%, Revenue 14%

The Gambia has projected its estimates for total expenditure and net lending for the fiscal year 2008 to D5205 million. If met, this will mean marginally higher economic growth of 15% compared to D4512 million in the previous year, 2007.

This estimates are based on the fact the expected availability of both Highly Indebted Poor Countries (HIPC) and the Multilateral Debt Relief Initiative (MDRI) resources, and also privitisation proceeds from the sale of 50% shares in Gamtel and Gamcel. This has provided the opportunity to finance additional expenditures in both capital and current expenditures of 21% and 11% respectively.
 
The said statement by the Secretary of State for Finance and Economic Affairs Hon. Mousa Gibril Bala Gaye, while delivering the Appropriation Bill 2008  (Budget Speech) before the members of the National Assembly last Friday, indicated a projected increase of recurrent expenditure 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.

The projected increase in total recurrent expenditure figure of D2812 million for the year 2008, according to the Finance and Economic Affairs Secy, comprises personal emoluments of about D918 million, or 32% of recurrent budget; other charges of D1143 million, or 40.6%, interest payments on the external and domestic debt accounts for D622 million, or 22%.

Capital expenditure and net lending, Secy Gaye Continued, amounts to D2333 million, of which D1024 million is from loans, D669 million from grants, D336 million from Government Local Funds, and D110 million from net lending.

“For 2008, poverty reducing expenditures are projected at D1480 million, or 46%. The budget is projected to have a deficit of D730 million, or 4.2% of Gross Domestic Product (GDP). However, the deficit is fully financed by net external borrowing of D826 million, and a net domestic debt repayment position of D96 million”, he added.

For the country’s revenues for 2008 Secy. Gaye noted that the 2008 budget projects total domestic revenue at D3771 million representing a 14% increase over the 2007 budget figure of D3322 million, which he added, are made up of a direct tax of about 27%, or D1017 million, and indirect tax of about 62 percent, or D2345 million, and the remaining D408 million, or 11 percent, is from non-tax revenues and grants.

He added that the capital revenue is estimated at D406 million.

In conclusion, Secy. Gaye reaffirmed that government’s goal is to use the fruits of its 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.

Achieving government’s ultimate goal of poverty reduction and meeting the Millennium Development Goals (MDGs) Secy. Gaye went on, can be made much easier by all Gambians, by merely changing attitudes, and the way they 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.