2012 Draft Budget is D5.77BN

(Daily Observer)--The total revenue and grants of The Gambia government budget for the fiscal year 01st January to 31st December 2012 is projected at D5.77 billion. This was disclosed by the minister of Finance and Economic Affairs, Mambury Njie before deputies at the National Assembly yesterday.

This is in accordance with Section 152 (1) of the 1997 Constitution of The Gambia for the president to instruct the Finance minister to submit to the National Assembly, at least 30 days before the end of each financial year, the estimates of revenues and expenditures of The Gambia for the following year.  According to the Finance minister, the revenue is expected to increase in nominal terms to D4.61 billion in 2012 on account of increased receipts from non-tax revenue.

Net-lending projection
Minister Njie added that the total expenditure and net-lending is expected to increase by about 10% from D61.11 billion in 2011 to D6.72 billion in 2012. The rise in total, according to him, is explained mainly by increases in other current expenditures and anticipated project grants.

Other charges and personnel expenditures
The Finance and Economic affairs minister stated further that the personnel expenditure is projected to increase to D1.73 billion in 2012, representing an increase of 3%, compared to D1.67 billion in 2011. “Other charges are estimated to stand at D2.54 billion in 2012 compared to D2.26 billion in 2011, reflecting a year-on-year growth of 12.6%. The increased provision to accommodate the new subvented institutions in the budget contributed to the increase in other charges expenditures,” said Minister Njie. According to him, the 2012 budget will see an increase in domestic borrowing and settlement of NAWEC arrears and other liabilities.

While seeking approval from lawmakers, the draft budget estimate for the coming year, the Finance and Economic Affairs minister pointed out that the budget will be a useful tool in their drive to accelerate growth and reduce poverty as well as to sustain macroeconomic stability. He said: “On the onset, allow me to state that government is steadfast and determined to continue with the fiscal and structural reforms undertaken during 2011. It will continue to consolidate the macroeconomic gains recorded for the past successive years.”

The Finance and Economic Affairs minister noted that despite the uncertainties in the global economic environment, the Gambia economy remains strong. According to him, the GDP is estimated to grow by 5.5% in 2011 underpinned by healthy performance of the agricultural and telecommunication sectors.

“Inflation continues to be subdued with end-September 2011 inflation standing at 4.1% compared to 6.2% a year earlier. The decline in inflation is explained mainly by food items, accounting for 55% of the weight of the basket of goods and services and inflation is expected to remain within the target of 6% during the year 2011,” he explained.

According to Minister Njie, government fiscal operations during the first three quarters of 2011 yielded an overall deficit (excluding grants) of D889.9 million, 2.8% of GDP, mirroring expenditures of D3.7 billion against a revenue outturn of D2.8 billion during the period under review.

The Majority leader and National Assembly member for Serekunda East, Fabakary Tombong Jatta, who seconded the motion thanked the Finance minister for the draft estimate budget including the development expenditure for the year 2012.
According to him, government’s commitment and determination for effective fiscal and structural reform in the financial sector is unprecedented despite the global financial crisis.

Like the Finance minister, Hon. Jatta also observed that despite the global financial downturn, the Gambia economy remains strong. He finally commended the government for its determination to ensure improved tax policies and tax administration and the idea of widening the tax-base.