By Binta Jaiteh
Honourable Seedy Keita, Minister of Finance and Economic Affairs has revealed that external financing remains broadly unchanged however domestic borrowing has increased to D4.2 billion in the revised budget from D2.5 billion in the approved budget.
Speaking during the tabling of the revised 2022 Budget in the National Assembly Complex, Banjul said this is mainly a result of cuts in goods and services and transfers on the budget balances of MDAs. Similarly, capital expenditure GLF and externally financed is also expected to fall from D12.1 billion to D12.0 billion. A D116.3 million (1%) decline compared to the approved 2022 budget.
According to him, he said the expenditure is estimated to decline from D11.3 billion to D10.6 billion by the end of the fiscal year representing a decline of 6.7 % (D761.3 million).
He said debt interest payments are also revised downwards to D3.04 billion falling by D415.2 million in the revised budget compared to 2022 approved budget amount of D3.5billion this is mostly due to the cover projection of domestic debt interest payment by D450 million.
Furthermore, the downward revision of total Revenue amounting to a total of 3.3 billion (11% reduction of the approved 2022 budget) and the reduction of expenditures of 1.2 billion from domestic debt service and cuts from MDAs (3.4% of the approved budget) and the funding of the salary increment amounting to D575 million.
The creation of the two ministries (Ministry of Communication and Digital Economy and the Ministry of Public Service, Administrative Reforms, Policy Coordination, and Delivery). This proposed budget is reflective of the current economic realities and consistent with a stable macroeconomic framework. As both the domestic in 2022, the Russia -Ukraine war brought a dramatic shift in the global economic conditions characterized by heightened supply side constraints higher food and energy. He said
As a result, in 2022, the agriculture sector is estimated to only grow marginally to 4.8% from 4.7% in 2021 whilst the industry and services sectors are projected to record a decline in growth and inflation the global increase in both energy and food commodity prices to fueling inflation reaching an 11.6 % in June 2022 meanwhile as supply side constraints continue amid a sustained increase in demand.
However, I rise to submit before this august Assembly a revised budget for 2022 as per the provisions of Section 30 (1) of the public financed act of 2014 states that “The Minister may submit a revised budget to the National Assembly with any changes on revenues and expenditures that may be required within the limit of total appropriation amount of expenditures in any particular financial year,” the Minister said.
