Back and Next - Back and Next2009 budget estimates presented
Tuesday, December 2, 2008
Mousa Gibril Bala Gaye, the secretary of state for Finance and Economic Affairs, yesterday evening, submitted the estimates of revenues, recurrent and development expenditures for the fiscal year 2009 to members of the National Assembly for consideration and approval.
The 2009 budget process conforms to all constitutional and legal requirements, and it is an obligation under section 52(1a) of the 1997 Constitution for NAMs to consider and approve the estimates of revenues, recurrent and development expenditures within the maximum period of 14 days after receiving the estimates.
Presenting the estimates, SoS Gaye provided the National Assembly with useful information on the execution of the 2008 Budget to help them in assessing and evaluating the budget projections for 2009.
He recalled the impressive performance of the 2007 Budget and the budget out-turns of a substantial surplus of D416 million, equivalent to 2.6 per cent of GDP.
“Unexpectedly, the projected out-turn for 2008 will be different,” the man at the head of the country’s finance department stated, adding that “total revenues and grants, which were projected at D4,142 million in end March 2008 will now, due to the food and fuel price increases and the credit meltdown, be revised downward to D3.541 million by end December 2008.
Domestic revenues will be reduced by D436 million from D3, 779 million in end March, 2008 to D3, 345 million by end - December, 2008, due to shortfalls in oil and non-oil revenues. Capital Revenue is projected to be zero. The Grant figure of D363 million will reduce to D196 million due to the slow progress in the implementation of the European Union funded road projects.”
SoS Gaye went on to state that developments in revenues have also affected projected expenditures between end March, 2008 and end December, 2008, and that expenditure and NET Lending, which were budgeted at D4,686 million, will now reduce to D3,805 million as at end December, 2008. Current expenditures, he added, will also increase from D2, 838 million to D2,956, and capital expenditure from a revised D1,679 million to D755 million in 2008.
And he went on: “The overall fiscal position for 2008 is projected to improve from a deficit of D544 million to D265 million by end-December, 2008. The basic balance, which was projected at a surplus of D246 million, will now end at a surplus of D35 million in 2008,” he noted.
On the 2009 Budget, the Finance and Economic Affairs boss stated that the budget had been framed against the above background and also on the basis of certain key assumptions for the revised macro-economic framework that government recently agreed with the International Monetary Fund, to consolidate recent macro-economic achievements and for the attainment of The Gambia’s economic and social objectives to reduce inflation from a projected 8 per cent by end December, 2008, to below 6 per cent by 2009.
2009 revenues and grants
He said that the 2009 Budget projects total Revenues and grants at D4, 582 million. And of this amount, domestic revenues will be D3, 771 million, 12.7 per cent increase over 2008. Out of the total domestic revenues, direct taxes will be D1,210 million, and indirect taxes will be D2,181 million, with non-tax revenues remaining at D380 million”.
2009 Net lending
Expenditures and NET LENDING for 2009, according to SoS, is projected at D5, 363 million, an increase of 39.4 per cent over the revised 2008 figure. Current expenditures are estimated at D3,466 million, of which salaries and wages accounts for D1,034 million, or 30 per cent of current expenditures and other charges projected at D1,586 million, of which goods and Services will account for D1,066 million, and current transfers D520 million.
SoS Gaye then revealed that government’s principal goals would continue to reduce poverty and achieve all the Millennium Development Goals through strong sustained growth and macro-economic stability, underpinned by fiscal policy which seeks to promote fiscal discipline, efficiency and effectiveness in spending, and complementary strong monetary policies.
He added that the share of Government Local Funds (GLF) on poverty-reducing expenditures has been increased from 46.61 per cent to 55.01 per cent in the 2009 Budget.
He finally informed parliamentarians that the formulation of the 2009 Budget went, as usual, through a consultative process with the issue of the Budget Call Circular, setting the Budget Ceilings for all the departments of state and government institutions, the departmental consultations/or hearings with the participation of the National Planning Commission, consultations with the International Monetary Fund, as required under the Current PRGF Programme before submission of the draft 2009 estimates for consideration and approval by Cabinet.
He further confirmed that the 2009 Budget process conformed to all constitutional and legal requirements as well. Seconding the motion, Hon. Borry Colley, National Assembly Member for Foni Jarrol commended the secretary of state and team for job well done. He urged members to thoroughly read the estimates as it is of national interest.
Speaker Fatoumatta Jhumpa-Ceesay in adjourning the debate, also saluted the Secreatry of state for Finance and Economic Affairs and team of experts for a job well done. The Assembly resumes sittings on Monday 8th December, 2008 for proper debate for the consideration and approval of the budget estimates
The 2009 budget process conforms to all constitutional and legal requirements, and it is an obligation under section 52(1a) of the 1997 Constitution for NAMs to consider and approve the estimates of revenues, recurrent and development expenditures within the maximum period of 14 days after receiving the estimates.
Presenting the estimates, SoS Gaye provided the National Assembly with useful information on the execution of the 2008 Budget to help them in assessing and evaluating the budget projections for 2009.
He recalled the impressive performance of the 2007 Budget and the budget out-turns of a substantial surplus of D416 million, equivalent to 2.6 per cent of GDP.
“Unexpectedly, the projected out-turn for 2008 will be different,” the man at the head of the country’s finance department stated, adding that “total revenues and grants, which were projected at D4,142 million in end March 2008 will now, due to the food and fuel price increases and the credit meltdown, be revised downward to D3.541 million by end December 2008.
Domestic revenues will be reduced by D436 million from D3, 779 million in end March, 2008 to D3, 345 million by end - December, 2008, due to shortfalls in oil and non-oil revenues. Capital Revenue is projected to be zero. The Grant figure of D363 million will reduce to D196 million due to the slow progress in the implementation of the European Union funded road projects.”
SoS Gaye went on to state that developments in revenues have also affected projected expenditures between end March, 2008 and end December, 2008, and that expenditure and NET Lending, which were budgeted at D4,686 million, will now reduce to D3,805 million as at end December, 2008. Current expenditures, he added, will also increase from D2, 838 million to D2,956, and capital expenditure from a revised D1,679 million to D755 million in 2008.
And he went on: “The overall fiscal position for 2008 is projected to improve from a deficit of D544 million to D265 million by end-December, 2008. The basic balance, which was projected at a surplus of D246 million, will now end at a surplus of D35 million in 2008,” he noted.
On the 2009 Budget, the Finance and Economic Affairs boss stated that the budget had been framed against the above background and also on the basis of certain key assumptions for the revised macro-economic framework that government recently agreed with the International Monetary Fund, to consolidate recent macro-economic achievements and for the attainment of The Gambia’s economic and social objectives to reduce inflation from a projected 8 per cent by end December, 2008, to below 6 per cent by 2009.
2009 revenues and grants
He said that the 2009 Budget projects total Revenues and grants at D4, 582 million. And of this amount, domestic revenues will be D3, 771 million, 12.7 per cent increase over 2008. Out of the total domestic revenues, direct taxes will be D1,210 million, and indirect taxes will be D2,181 million, with non-tax revenues remaining at D380 million”.
2009 Net lending
Expenditures and NET LENDING for 2009, according to SoS, is projected at D5, 363 million, an increase of 39.4 per cent over the revised 2008 figure. Current expenditures are estimated at D3,466 million, of which salaries and wages accounts for D1,034 million, or 30 per cent of current expenditures and other charges projected at D1,586 million, of which goods and Services will account for D1,066 million, and current transfers D520 million.
SoS Gaye then revealed that government’s principal goals would continue to reduce poverty and achieve all the Millennium Development Goals through strong sustained growth and macro-economic stability, underpinned by fiscal policy which seeks to promote fiscal discipline, efficiency and effectiveness in spending, and complementary strong monetary policies.
He added that the share of Government Local Funds (GLF) on poverty-reducing expenditures has been increased from 46.61 per cent to 55.01 per cent in the 2009 Budget.
He finally informed parliamentarians that the formulation of the 2009 Budget went, as usual, through a consultative process with the issue of the Budget Call Circular, setting the Budget Ceilings for all the departments of state and government institutions, the departmental consultations/or hearings with the participation of the National Planning Commission, consultations with the International Monetary Fund, as required under the Current PRGF Programme before submission of the draft 2009 estimates for consideration and approval by Cabinet.
He further confirmed that the 2009 Budget process conformed to all constitutional and legal requirements as well. Seconding the motion, Hon. Borry Colley, National Assembly Member for Foni Jarrol commended the secretary of state and team for job well done. He urged members to thoroughly read the estimates as it is of national interest.
Speaker Fatoumatta Jhumpa-Ceesay in adjourning the debate, also saluted the Secreatry of state for Finance and Economic Affairs and team of experts for a job well done. The Assembly resumes sittings on Monday 8th December, 2008 for proper debate for the consideration and approval of the budget estimates
Author: by Alhagie Jobe
See Also - See Also