The National Assembly was informed by Finance Minister Seedy Keita on Wednesday that the government has significant difficulties in carrying out the national budget for 2024 “because there is no substantial budget support from development partners up to this hour.”
During the discussion of the Finance and Public Accounts Committee’s report on the D52.9 billion budget estimates for 2025, the minister revealed this information in response to members.
It also followed complaints from a number of parliamentarians who blamed the Ministry of Finance for the inadequate distribution of funds allocated to certain sectors in this year’s budget, such as the education sector, which hindered the functioning of the School’s Improvement Grant SIG, among other programs. The government “cannot give what it did not have,” Minister Keita responded, acknowledging that sectors are complaining about not receiving their expenditures.
“When it comes to carrying out the budget, this year is particularly difficult. The minister stated, “We had shocks on both the revenue and expenditure sides of the budget, and the combination of that was a very difficult balancing act to play.”
Additionally, he clarified that although the budget assistance on the revenue side exceeds D3 billion, “we have executed the budget up to this hour without receiving any substantial budget support yet.”
The partners are in advanced stages of discussing the budget supports, and I believe the World Bank will present to the board on December 6. Meanwhile, we are following up on continuing conversations in Brussels regarding the EU. All of them have prevented us from materially realising any budget support thus far.
The Ministry of Agriculture’s REWARD program was given priority over even the funding help that was thought to have been from the African Development Bank. As a result, this year has been entirely up to us as a government. When resources are available to be spent, the National Assembly and the sectors should realise that neither the Minister nor the Ministry of Finance wishes to refuse them. However, Minister Keita clarified, “We couldn’t give what we don’t have.”
The finance minister also revealed that the government has now surpassed its D2 billion net domestic borrowing objective, rising to D7 billion, about D4 billion above the target.
“How to bring that down is our challenge. We are therefore performing a very challenging balancing act. We want to do a broad review of government spending starting next year, and we have explicitly asked the International Monetary Fund to conduct a public expenditure review exercise to make sure that we are implementing our budget with value for money,” Keita revealed.
Sainey Jawara, a member from Lower Saloum, used his contribution to attack the administration for what he describes as its “over reliance” on grants and loans from donors to finance national development.
The Minister’s response that the budget estimates were just presented to the parliament as a result of negotiations between the government and its development partners regarding pay increases caused him to scowl.
“We should concentrate on finding efficient ways to activate our nation’s resources without the need for outside assistance. The minister should inform me where the World Bank and IMF operate in Africa and assist in the development of those nations. The minister should still tabulate the budget estimates at the appropriate time despite negotiating with these partners. We must improve ourselves. The eggs must be broken. Hon. Jawara stated, “No one can stop me from speaking the truth because I am among those who made this change possible when some of you are not in this country.”
Minister Keita retorted, however, that he was not “unaware” of the constitutional provision requiring the budget projections to be tabulated sixty days prior to the end of the year, but that it was done so in the “supreme national interest.”
“This Assembly was consulted. Here, the local authorities were consulted. It was not unknown to us. It was not that we did not know the time table and as such we mistakenly slipped it through our hands. The authority of this National Assembly and the executive agree that, while there is a constitutional requirement, the salary increase for the entire Gambian civil service is more beneficial. Keita said, “I apologise to this Assembly on Friday out of humility, but that does not imply that I was unaware of it.
