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Momodou
Denmark
11823 Posts |
 Posted - 04 Dec 2009 : 16:21:57
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FINANCE MINISTER PRESENTS 2010 ESTIMATES TO NAMS
By Amie Sanneh
Estimated Revenue for 2010 - 5439Million
Estimated Expenditure for 2010 - 6039Million
Tax revenue -3991Million
The Minister of Finance Abdou Colley, on Tuesday presented the estimates of Revenues, Recurrent and Development expenditures for the 2010 fiscal year to the National Assembly for consideration and approval.
He said that the total revenue and grants is estimated to increase from an approved level of D4.582 Billion in 2009 to D5439 Billion in 2010 representing 25.32% of GDP.
This increment, he explained, is attributed to both increases in domestic revenues and external grants. Domestic tax revenue is estimated to increase from the approved figure of D3.391 billion in 2009 to D3.991 billion in 2010 he said.
Minister Colley stated that “project grants is estimated to increase from D513.1 million in 2009 to D636.2 million in 2010. He added that the budget support from EU and HIPC is also projected to increase from D290 million in 2009 to D424.8 million in 2010.
He added that “total Expenditure and Net-Lending is also estimated to increase from D5.363 billion in 2009 to D6.039 billion in 2010, representing 28.12% of GDP, he remarked. Minister Colley explained that this increase is mainly caused by increases in personnel emoluments, other charges and externally financed expenditure. Debt interest he added is projected to drop from D845.2 million in 2009 to D762.4 million. The share of debt interest to GDP also continues to fall, he said. He further stated that the decline in interest payments is attributed to the projected fall in the yield on interest and the restructuring of the terms of the T-bills instruments. The attainment of this is premised mainly on prudent fiscal management”.
The finance Minister pointed out that “other non-interest expenditures are projected to increase because of the increases in grants and domestic revenues. Personnel expenditures is estimated to increase from its approved level of D1.035 billion in 2009 to D1.497 billion in 2010. He noted that the share of personnel expenditures to GDP increases from 5.16% in 2009 to 6.97% in 2010.
The Finance Minister further stated that the fiscal deficit is projected to fall from D781 or 3.89% of GDP in 2009 to D599.9 million or 2.79% of GDP in 2010.
Minister Colley said that despite the recent economic and financial crises that hit the global economy, the Gambian economy still remains strong. Real GDP is projected at around 5% by end of December 2009 higher than initially expected at the end of the first quarter of 2009. This he said is due mainly to the growth in agricultural sector which more than offset the decline in economic activities that hit the tourism and the residential construction industries. He said that the stability of the dalasi against major international currencies has also helped to keep inflation rate stable. Both food and non food components of inflation declined during the said period. “The fiscal position,” he went on, “witnessed some slippages largely caused by unplanned expenditures in the second quarter of 2009 resulting to a negative basic balance of D61 million at the end of September 2009.” He said that the higher than expected revenue performance, particularly for international trade taxes could not match the huge expenditure in the second quarter of 2009. He noted that the Ministry of Finance is committed to improving on fiscal management so that the position of the basic balance does not exceed negative D190.5 million by end December 2009.
He stressed the need for government to restrain spending within its available resources so as to reduce the stock of domestic debt and the interest rate of the debt. “The domestic debt-to-GDP ratio currently stands at 255 and this is worrying if government’s appetite for spending is not contained.” “Overall debt interest consumes around 20% of our domestic resources and for that matter limits government’s efforts to increase resources for spending on social programs and projects,” he said. Minister Colley explained that there are plans to restructure the terms of our treasury bills instruments in order to generate greater fiscal space for spending on investments.
He said that if this budget is approved, it will be a useful tool to achieve and sustain macroeconomic stability and the government’s primary objective of reducing poverty consistent with the Gambia’s long-term growth path and 2020 vision.
Source: Foroyaa Online
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