The Minister of Finance of Economic and Affairs, Hon. Mambury Njie revealed that the total revenue and grants for 2021 is projected at D25.76 billion (USD 498.3 million), representing a minimal growth of 5 per cent over the 2020 figure of D24.3 billion (USD471.9).
He said that the increment is mainly attributed to project grants to come from their development partners.
Hon. Njie made these disclosed in Chambers while laying the Estimates of Revenues, Recurrent and Development Expenditures for the fiscal year 2021 before the National Assembly Members for consideration and approval.
According to him, the project grants is expected to reach D8.8 billion (USD 170.2) compared to D8.1 billion (USD 156.7) in 2020. Meanwhile, total tax revenue is projected to marginally increase by 5 percent to D12.2 billion (USD 235.9) compared to D11.6 billion (USD 224.3) in 2020, whilst Non-Tax Revenue is projected to decrease by 23 percent to D1.53 billion (USD 29.59 million) compared to D2 billion (38,6million) in 2020.
Hon. Njie stated that he 2021 budget would factor Budget Support amounting to D3.2 billion (USD 61.9 million) from their development partners, compared to D2.7 billion (USD 52.2 million) in 2020. “The total Budget Support expect from the European Union in 2021 is 13.5 million euros (812.0 million), whereas an additional $7 million (D361.9 million) is expected to come from African Development Bank, and $20 (D1.03 billion) from the World Bank. Additional grant of D300 million (USD 5.81 million) is expected from the Catastrophe Containment and Relief trust (CCRT) of the IMF in addition to a top-up of Extended Credit Facility of D700m (US$13.56 million) from the same institution”, he noted.
Expenditure & Financing
He said that total expenditure and net-lending is project to increase from D28.3 billion (USD 547.4 million) in 2020 to D31.90 billion (USD 617 million) in 2021, representing a growth of 12 percent, the bulk of this is related to capital expenditure, more specifically, the funding of various road projects across the country.
He alluded that the Personal Emolument (PE) expenditures are projected to also increase from D4.4 billion (USD 85.1 million) in 2020 to D4.9 billion (USD 94.7 million) in 2021. The Increase in PE is as a result of an additional 2,000 teachers being recruited from the Ministry of Basic and Secondary Education, payment of Allowances to Election officers, as well as factoring yearly increments based on promotions.
Finance Minister Njie averred to invite reflection on the truism that the crafting of this 2021Budget is being done under very unusual and difficult social and economic circumstances, premised on their current challenges, they expect that 2021 would require a lot of sacrifices.
However in a paradox, he added that 2021 provides opportunities for innovation in all aspects of their national economy and leveraging the potentials of digitalization to transform their businesses, create an IT savvy populace, and restructure sectors worst hit by COVID-19 to make them more resilient. “Our intention now is to place our energies in the pursuit of local solutions to our economic challenges, achieve greater value addition, establish sustainable domestic value chains, and diversify production and expand our export base”.
He told NAMs that 2021 promises to be transformational, it would be revolutionary and despite the gloomy clouds associated with COVID-19, their 2021 national budget can place us on the path to becoming a highly productive nation.
Story By: Aji Fatou Faal