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Gambia News : Unplanned expenditures delay economic development in Gambia
Gambian Minister of Finance and Economic Affairs, Abdou Kolley, said here on Wednesday that the fiscal position of the country witnessed some drawback largely because of unplanned expenditures in the second quarter of 2009.
He said the slip resulted in a negative basic balance of 61 million Dallasis at end of September 2009.
Kolley, presenting the estimates of Revenues, Recurrent and Development Expenditures for the Fiscal Year 2010 to lawmakers, said "the higher than expected revenue performance, particularly for international trade taxes, could not match the huge expenditure overruns in the second quarter of 2009.
â?The Ministry of Finance and Economic Affairs is committed to improving on fiscal management so that the position of the basic balance does not exceed D190.5 million in negative by end December 2009."
Kolley said it had become important to restrain government spending within available resources so as to reduce domestic debts and the attendant interest rates.
According to him, the domestic debt-to-GDP ratio currently stands at 25 per cent while interests on debts gulp about 20 per cent of the domestic resources.
He also said that there were plans to restructure the terms of the treasury bills instruments in order to generate greater fiscal space for spending on investments.
Kolley said that structural reforms such as the establishment of a credit reference bureau, the publication of quarterly balance of payments statistics and the presentation of a national debt sustainability strategy to cabinet had also been carried out.
The minister said total revenue and grants were estimated to increase from an approved level of D4.582 billion in 2009 to D5.439 billion in 2010, representing 25.32 per cent of the GDP.
The increase, he said, was attributable to both increases in domestic revenues and external grants, adding that Domestic tax revenues were estimated to increase from the approved figure of D3.391 billion in 2009 to D3.991 billion in 2010.
He also said project grants were estimated to increase from D513.1 million in 2009 to D636.2 million in 2010. In addition, the budget support, including that from the European Union (EU), is also projected to increase from D290 million in 2009 to D424.8 million in 2010.
Total expenditure and Net-lending are also estimated to increase from D5.363 billion in 2009 to D6.039 billion in 2010, representing 28.12 per cent of the GDP, the minister said, adding that the increase was mainly caused by increases in personnel emoluments, other charges and externally-financed expenditures.
Other non-interest expenditures are projected to increase because of the increases in grants and domestic revenues.
"Personnel expenditures are estimated to increase from an approved level of D1.035 billion in 2009 to D1.497 billion in 2010. The share of personnel expenditures to GDP increases from 5.16 per cent in 2009 to 6.97 per cent in 2010â?, he noted
Kolley said the fiscal deficit was, however, projected to fall from D781 million or 3.89 per cent of the GDP in 2009 to D599.9 million, or 2.79 per cent of GDP in 2010.
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- are country will never grow untill mandinkas rule like it yous two be out with the jammeh in with the mandinkers jammeh is a tirant like mugarbe
(Posted on March 26, 2010, 12:19 PM SEIKO DEMBA)
- If our culture is to be mute and subservient while an idiotic and clueless minority ruins our country then it has no place in the 20th century and my generation refuses to bow to that...we have our opinion and we will voice it forcefully!!
(Posted on December 6, 2009, 12:58 PM John)
- Think twice before insulting, your dad, mum, brother or what ever amy be part of the ones you refer to as idots. Our grievance and hatered for the party will never generate anything meaningful. Is not our culture to be rude. Loosers are always angry.
(Posted on December 5, 2009, 3:18 PM Lamin)
- ''...had become important to restrain govt spending within available resources''.There is no restraining the APRC idiots in Banjul,it is just one big party and spending spree for them whenever Jammeh calls for it.... clueless fools in suits
(Posted on December 4, 2009, 10:35 AM moses jatta)
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