LAYING OF ESTIMATES OF REVENUE AND EXPENDITURE
Gambia Participates observed the tabling of the estimates of revenue and expenditure for the fiscal year 2022. Per the 1997 Constitution and the public Finance Act of the Gambia, the Minister of Finance and Economic Affairs lays the estimates of revenue and expenditure for the upcoming fiscal year 30 days before the end of the fiscal year but this, has however taken a paradigm shift as the Presidential elections draws closer in the face of numerous political activities, the budget was tabled earlier than expected.
On October 18th 2021, the Minister of Finance and Economic Affairs tabled the revenue of estimates and expenditure detailing the expected revenue, the budget allocations for each government entity and other government expenses. This marked the conclusion of the laying of the estimates, following this process allows time for the various committees to scrutinize the estimates upon which a report is submitted to the Finance and Public Accounts Committee for a consolidation before the final discussion at plenary which opens up the floor for discussion and debate at the general assembly in conformity with Standing Order 81 of the National Assembly. As per 2022 the Gambia estimate revenue for the 2022 fiscal year is projected to reach 17bn which forms 15.27% with tax and non-tax revenue amounting to 12bn and 13bn respectively.
BUDGET DEBATE AND FPAC CONSOLIDATED REPORT
The plenary on October 25th 2021 convened to discuss the findings of the consolidated report accompanied by a motion for debate as a result of which the Finance and Public Accounts Committee engaged relevant institutions under its purview to scrutinize their respective budgets estimates of revenue and expenditure for the 2022 fiscal year.
Other standing and select committees engaged different Ministries, Departments and Agencies within their limit and submitted findings and recommendations which formed part of the consolidated report The Finance and Public Accounts Committee considered the reduction of the budget deficit to a sum of 2.2bn, the allocation for MDAs was maintained to as presented in the original estimates or reduced and reallocated as and when necessary. The Finance and Public Accounts Committee had encounters with the Ministry of Finance, the National Audit Office, the Independent Electoral Commission, the Office of the Ombudsman, the National Assembly Service, Office of the President and Vice President and the Judiciary. After a rigorous review and scrutiny, bearing in mind the 2.2bn deficit, the FPAC resolved to recommend that the estimates of revenue be amended.
At the debate in parliament, the Finance and public Accounts Committee raised the issue of the rising percentage of the tax revenue scale which seemingly outweighs the tax revenue and this poses a rise in taxes levied on public servants which must be countered through an increment of government social services to the able to sustain the economy. the Gambia stands to loose over 2.2bn dalasis worth of revenue in 2022 with a GDP of 115m.
After a rigorous review and scrutiny, the committee of supplies sat over the budget to hear and accommodate observations and joint recommendations from the Finance and Public Accounts committee of the parliament.
On October 25th 2021, the National Assembly Members converged to present to the plenary the recommendations of the Finance and Public Accounts Committee which saw a systematic review of every budget head starting with the office of the president with a deduction of 5 million dalasis which was reallocated to the Office of the Vice President under a Social Safety Net as a government contribution. The upkeep of State Guards was reduced by a sum of 500 thousand dalasis, upkeep of the State House was reduced by a sum of 1 million dalasis rents and rates of the Office of the Vice President was reduced by a sum of 3m dalasis which totaled to an entire sum of 8 million to be diverted to underfunded sectors.
BUDGET SPEECH OCTOBER 28TH 2021
Following the budgetary debates in parliament and all necessary amendments before plenary, the National Assembly approves the tabled Estimates of Revenue and Expenditure pursuant to the 1997 Constitution 152 (1) (a) and Clause 2 of Standing Orders 86. Similarly, in accordance with section 152 (3) of the 1997 Constitution and Standing Order 87 clause (2) the Minister of Finance and Economic Affairs delivered the final revised, amended and approved estimates of revenue and expenditure setting out government policies and programs for the fiscal year 2022 which will undergo and approval process by the President. As per the revised budget the various budget entities were allocated.
The Minister of Finance and Economic Affairs gave brief overview of the appreciation and depreciation in the Gambian currency against other foreign currencies as it affects our economy, the successes registered in the sectors of health, the elimination of gender based violence, education, agriculture, sports, legislations to regulate public finance management in institutions and all other relevant areas of development which is being targeted and featured in the 2022 Estimates of Revenue and Expenditure.
Mirroring the current state of the country’s economy as it battling to attain a multi-dimensional recovery process, despite the implementation progresses registered in the previous year, the country’s economy was hit by a total 2.2bn deficit in 2021 which is hoping to be remedied in the 2022 budget for the fiscal year.
Personnel emolument escalated by 11% to 3.3bn dalasis interest payment increased by 6% to 2.6bn dalasis, and all other charges declined by 6 percent due to a decline in Covid 19 related expenditures.