BUDGET 2022: Borrowing from commercial banks to finance the budget deficit is a recipe for disaster in an economy trapped by liquidity


BUDGET 2022: Take loans Of Commercial banks to finance the budget deficit is a recipe Disaster in an economy trapped in money

LOAN D2.46 BILLION IN THE COUNTRY FINANCING THE DEFICIT WILL HAVE Catastrophic consequences for our fragile economy

The approved draft estimate of revenues, recurring expenses and projected development expenses from January 1 to December 31 2022 will be presented Thursday, October 28, 2022.

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With presidential elections imminent in a period of two months, Gambians continue to be concerned about the huge challengecities reported each year by the government of Adama Wheelbarrow who is without a doubt taking us to one ofbt hole for years to come.Borrow more money to repay existing debts or take out loans from commercial banks to pay cicivil servant salaries to givesan indication of the government’s disastrous management of the economy.

The amount of resources we devote to education, agriculture, youth and sports, and gender-related services is insignificant compared to the billions of Dalasi spent annually on interest payments. debt. The overall debt service is expected to be 5.74 billion dinars in 2022. Expenses more than 20% of government revenue for debt service could have the consequences of widening the budget deficit making it difficult to maintain the sustainability of public finances and debt thanks to fiscal consolidation.

The economy should naturally be a huge factor in the next election. Will the Minister of Finance deal with the depressing economic and social problems facing the people? we’ll see. I take pleasure in presenting some Relevant questions to look for in the 2022 budget speech: –

1. He is observed that ccapital expenditure is expected to register a significant growth of nearly 160%, from 4.69 billion dinars spent in 2021 to a whopping 12.16 billion dinars for the modernization of vital road, energy and hydraulic infrastructures across the country . following the hosting of the Summit of OIC Heads of State and Government in 2022. One question that needs clarity is hoh much were assigned to the Banjul Road Project to the handpicked service provider given that 500 million dinars had been paid in 2021?

2. Will there be a salary proposal increase at all levels depending on the recent review of the government’s compensation structure and policy what was ordered and completed this year. What impact will this have on thebudget deficit given the increase in the budget amount of salaries, wages and allowances for government employees?Also, have the salaries offered for chefs and alkalisreads included in budgeted personnel costs?

3. Our country is becoming a dumping ground for used vehicles, some imported cars may be up to twenty years old. Athe spaces available on our main roads are now transformed into parking lots or garages for the sale of used cars and used trucks despite recent increases in car duties. It will be interesting to note if the government has taken further action in the 2022 budget.t to protect our environment from ACcarbon emission through restricting import of unworthy vehicles that are over a decade old.

4. The National Health Insurance Policy (NHIP) was included in the 2021 budget and is expected to have started since January 2021. What steps have been taken to ensure that the average Gambian has access to affordable health care in 2022? Paying cash for health services is becoming a nightmare for many who cannot afford the high cost of medical services in the country. Ensure health health care system rather than for people to make money locally will ensure equitable access to health services and help save many lives.

5. The $ 40 airport tax charged to inbound and outbound travelers harms our tourism industry. There is evidence that other destinations in the sub-region are expected to gain significantly due to the charges on tourists. Has the government been true to its promises toremove airport tax in 2022?

6. Last year the government unexpectedly transferred the collection of revenue from the Senegambia toll bridge to the general accountant. It will be to be interesting to know how much income wasfr collected so far and the amount entered in the 2022 budget like non-tax revenue?

7. Public enterprises play an important role in the economy and no review of government revenue estimates and expenses will be complete without an assessment of the financial performance of State enterprises and its impact in tthe national budget. A government that does not have a dividend policy on public enterprises risks losing billion in non-tax revenue public enterprises in particularofficially when huge taxpayers money be familiar subsidiaryze public enterprises in difficulty and under-ventilated establishments. How many were taken into account in the 2022 budget for dividends received from public enterprises?

The reality of the harsh economic difficulties facing the country and the long, sustainable budget deficits reported throughout the current four years of government present a formidable challenge to any presidential aspirant. Already in the 2022 budget, the the government is planning a payment of 3.45 billion dinars for debt service. That constitutess 20 percent tax revenue should be collected during the year.

Citizens relied on the National Assembly to demonstrate greater rigor in reviewing and approving the budgets ofI am the executive. Approval of quotes without insisting on details, responsibility and caution, is a blatant failures essential constitutional role.

The frequency of supplements Appropriation that this government hass done to lawmakers every six mmonth of budget execution is a testirony lack of public accountability and transparency in the annual budget review.

MORRO GAYE

About Ruben V. Albin

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