Gambia’s debt interest to hit D5.9B in 2024
The minister for Finance and Economic Affairs, Seedy Keita, has hinted that the country’s debt interest is projected to increase from D2.9 billion in 2023 to D5.9 billion in 2024.
The total expenditure and net-lending is also expected to increase by 6% rising from D37.15 billion in 2023 to D39.38 billion in 2024.
“Personnel Emolument expenditures are also projected to increase from D6.10 billion (revised to D6.7 billion) in 2023 to D7.43 billion in 2024,” Mr. Keita said, while laying the estimates of revenues and expenditure for the fiscal year 2024 before National Assembly Members (NAMs) on Friday.
In addition, he also said Personnel Emoluments have been revised in 2023 to take into account adequate adjustments relating to unplanned recruitments.
Meanwhile, Hon Keita alluded that the “goods and services from the use of both donor and government resources is projected to be D9.84 billion in 2024, representing a one percent decrease compared to 2023.”
Similarly, capital expenditures are expected to decline by 12 percent. The decline in the budget for both Goods and Services and capital expenditures are associated with the decline in project grant disbursement from 2023 to 2024. This is mainly explained by the over-projection of project funds which has been largely corrected for 2024.”
“The largest allocation of the expenditure budget is to education and the combined allocation to the sector (both the basic and higher education) comprises more than 15 % of the expenditure budget,” he said.
“This is necessary to invest in the human capital now in the country and to take advantage of the demographic dividend our youthful population presents,” he explained.
He pointed out that the infrastructure deficit of the country is huge, and so the sector attracts the second largest share of the budget; whilst health and agriculture follow closely.
“Hence the thrust of the expenditure budget is to invest in the capital base of the economy, build resilience that is much needed in these turbulent times.”
“Meanwhile, subsidies and transfers, which include subventions, are projected to increase by D599 million to D4.96 billion in 2024, compared to D4.34 billion approved for 2023. This increase is partly due to the increases in subventions for the GRA (anticipated high revenue collections), hospitals (MoH) and schools (MoBSE), GBOS (census) and the inclusion of new subventions such as the MCC Compact Coordination office, the Victims Commission, SOE Commission.”
Input subsidies for fertilizer also increased by D100 million.
“Goods and services from domestically financed resources increased by 34 percent from D4.08 billion in 2023 to D5.48 billion in 2024. The significant increase in Goods and Services is as a result of the increased funding for land compensation for roads and NAWEC solar power project, post-OIC activities, travel expenses of National Assembly and consultancy services related to public works. Furthermore, the contribution to the Gambia River Basin Project (OMVG) of D150 million and Hospital Drugs of D240 million are also contributing factors,” the Minister explained.
He added that overall capital expenditure (including donor funds) is expected to decrease by 12 percent to D11.76 billion in 2024, mainly as a result of the projected decrease in project grant disbursements.
However, he highlighted that government funding of infrastructure and related investments is projected to increase by 30 percent, from D2.50 billion in 2023 to D3.26 billion in 2024. This includes anticipated payments for on-going infrastructure works, including relocation of services and related works.”
Source: The Point
