Draft Budget Estimates for 2009 Presented to NA

The Secretary of State for Finance and Economic Affairs, Musa Bala Gaye yesterday presented before the National Assembly the draft estimates of Revenues, Recurrent and Development Expenditures of the government of The Gambia for the fiscal year 2009.

The draft, to be considered and approved within the maximum period of 14 days after its presentation, highlights issues relating to government’s expenditures for the coming year 2009.

In his presentation, the Finance and Economic Affairs Secretary gave an overview of the budget, of the performance of the 2007 budget, which registered a budget out-turn of a substantial surplus of D41 million, equivalent to 2.6 Percent of GDP. He however added that the projected out-turn for 2008 will be different.

According to Secy Gaye, the 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 credit meltdown, be revised downwards to D3.41 million by end December 2008.

“Domestic revenues will be reduced by D436 million from D3, 779 million in end March, 2008 to D3, 34 million by end-December, 2008 due to shortfalls in oil and non-oil revenues,”he said.

He added that the developments in revenues have also affected projected expenditures between end-March, 2008 and end-December 2008.

The 2009 budget, he went on, has been framed against this background, and also on the basis of certain key assumptions for the revised macro-economic framework that government recently agreed with the IMF to consolidate recent macro-economic achievements, and for the attainment of The Gambia’s economic and social objectives.

“The 2009 budget projects total revenue and grants at D4, 582. Of this amount, Domestic Revenue will be D3, 771, a 1.2 percent increase over the 2008 budget. Out of the total domestic revenues, direct taxes will be D1, 210 million, and indirect taxes will be D2, 181 million, and non-tax revenues D380 million”, he explained.