Dr. Ousman Gajigo an economist, has described the 50% increase in the salary of government workers by Minister of Finance, Mambury Njie as an irresponsible pronouncement by an entity that should have demonstrated and be the steward of restraint and responsibility.
“Some of us saw this unfortunate development coming. If we had any hope of fiscal responsibility under Mambury Njie as a Minister of Finance, it can now be put to rest”, said Gajigo’s who has held positions with the African Development Bank, the UN, the World Bank and Columbia University.
He added: “Make no mistake about it: Gambian government workers deserve a salary increase. Adjusted for inflation, public sector salaries have actually been declining in real terms. Without attractive compensation that ensures quality living standards, we will forever be stuck with a low-quality public sector.”
The development economics expert pointed out that there are better ways to solve this problem.
According to him, it does not involve taking in more debt or over-taxing the citizens, pointing that before embarking on any solution, “we must do a stock-taking of our current circumstances.”
“The Gambia is currently highly indebted. In fact, our debt level remains at 120% of GDP. By any definition, the Gambia is a debt distressed country. So, any extra expenditure that involves taking on further debt is a non-starter”, he pointed out.
He further recalled that during the last regime, of which Mambury Njie was a senior official, the government took on a lot of debt, a big part of which was domestic.
“This was achieved through excessive issuing of treasury bills. This raised the domestic interest rate to a level in excess of 20%, which resulted in chasing private businesses from any access to credit. Without any access to credit, businesses almost ceased to expand or being created, with predictable consequences for the economy”, he noted.