Debt Noose Chokes Gov't


The Independent (Banjul)

December 22, 2003
Posted to the web December 22, 2003

Banjul

The Gambia's burden of mounting debt, which is expected to reach the
neighbourhood of D17.85 billion by the end of 2003 is not sustainable and is
thwarting the government's campaign to alleviate poverty and other social
problems, according to Musa Bala Gaye the Secretary of State for Finance and
Economic Affairs.

In parts of his four-hour budget speech delivered in the National Assembly
Friday, SOS Gaye conveyed the government's seeming resignation to the
crippling dimension of our debt burden, by obliquely implying that the
burden has become so overbearing and overwhelming that it is seriously
hampering the government's valiant efforts towards addressing the
intractable issue of poverty in all its ramifications. He revealed that the
country's domestic debt stands at $666.06 million (D20.3 billion) while the
external debt is expected to reach about $576 million or D17.85 billion by
the close of the year.


According to Bala Gaye the galloping rise in Gambia's external debt has
increased by 15 percent from $490 million (D11.27 billion) in 2002.

He explained to the august Assembly that this is as a consequence of an
increase in development funds to finance new vital projects being
implemented by the government. He further explained that total servicing
costs of domestic debt has increased from D266.90 million at the end of 2002
and is projected to reach D436.2 million at the close of this year.

He outlined that this situation has not been complimented by a series of
internal and external economic shocks, which threatened to destabilise the
economy and disrupt the social fabric.

"The easy way out of this dilemma would have been by increasing spending or
injecting more purchasing power into the economy. But this approach is
irresponsible, and militates against the very fundamentals of prudent
economic management Macroeconomic stability is the centrepiece of the
government's economic policies. We have therefore despite rapidly rising
debt service payments maintained tight fiscal policies to support the
macroeconomic objectives essential for stable growth and for poverty
alleviation" SOS Gaye pointed out.

On foreign exchange development, the Secretary of State disclosed that,
between the end of December 2002 and September 2003, the local currency
depreciated in nominal terms by about 43, 50 and 58 percent against the US
Dollar, Pound Sterling and Euro respectively, in the Inter-Bank Market. In
the parallel market the dalasi depreciated by about 51, 48, and 64 percent
against the US Dollar, Pound Sterling and Euro, respectively.

On revenue and budgetary measures for 2004, Members of the National Assembly
were somewhat disappointed when the Secretary of State announced that there
are no startling or controversial proposals, but sensible and practical
measures that would focus essentially on an outcome of better revenue
enforcement. He reaffirmed that government is not contemplating an
adjustment of tax rates, be they direct or indirect, but rather, on an
improved enforcement of the existing taxes, to ensure equity among taxpayers
and to ensure that all monies due to government are fully and quickly
brought to account.

Among the fees and charges raised, as at 1st January 2004, include firearms
and game licenses, driving licenses and ordinary number plates and general
dealers licenses. Also others affected are road tax on commercial and
passenger vehicles, land rate and survey fees of different categories of
property, registration fees and charges for foreign and local fishing
vessels and an adjustment in the processing fees and charges on Customs
documents. He asserted that a gazette notification, detailing the fees and
charges would be issued in the course of this week. SOS Gaye was quick to
announce that price of super fuel will be increased by D3 effective 1st
January 2004 while the price of Kerosene and diesel fuel will remain
unchanged for the moment.

On measures for 2004, the SoS said he was proud to announce that, effective
January 2004, there will be a 10 percent increase in the salaries, wages and
pensions of all civil servants and institutions receiving government
subvention.

Malaria Control

On health and population, Secretary of State Bala Gaye pointed out that the
government's goal in the health sector continues to be the provision of
improved access to the essential Health Care Package for the population with
emphasis on wider coverage and affordability.

In this connection, SoS Gaye disclosed that the Gambia was certified by WHO
as achieving eradication status for neonatal tetanus and leprosy, and
presented with the challenge to maintain the status and work towards
elimination of these health hazards. During the year 2003 the incidence of
malaria has reduced remarkably as indicated in the recorded cases of both
outpatients and in-patients. There has been a reduction in the number of
complicated malaria cases and malaria related deaths also. WHO has ranked
The Gambia as a foremost success story in Africa, for her initiative and
impressive records registered in malaria control.

Relevant Links

West Africa
Gambia
Debt



On the financial performance of public enterprises, the Secretary of State
confirmed that the Gambia Telecommunication Company, Gamtel's total revenue
for 2002, showed a significant improvement over the previous year. He said
the audited accounts show total revenue of D594.4 million whilst expenditure
totaled D593.9 million, resulting in an after tax profit of D50 million. The
Social Security and Housing Finance Corporation (SSHFC) has recorded a
consolidated net surplus of D66.87 million.

For the National Water and Electricity Company (Nawec) it has been a
different story. SOS Gaye admitted that the year has been another difficult
period for Nawec, which incurred a loss of D191 million.

_________________________________________________________________
Enjoy the holiday season with great tips from MSN.
http://special.msn.com/network/happyholidays.armx

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
To Search in the Gambia-L archives, go to: http://maelstrom.stjohns.edu/CGI/wa.exe?S1=gambia-l
To contact the List Management, please send an e-mail to:
[log in to unmask]

To unsubscribe/subscribe or view archives of postings, go to the Gambia-L Web interface
at: http://maelstrom.stjohns.edu/archives/gambia-l.html

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~