By Almamo Kamaso
The Gambia is running a deficit budget and that it budget deficit is filled with loans and taxes which loans are always on the increase year by year, and so the interest accrued on the debts also go up. This year the 2021 budget presented by the Minister of Finance has its debts interest standing at D3, 08 billion.
The country borrow D4.22 billion equivalents to (USD81.6 million) in 2021 to finance development projects, compared to the D4.04 billion, equivalent to (USD78.1million) borrowed in 2020.
In the Minister’s speech whiles presenting the 2021 draft estimates to members, he said that Debt interest payment will reach D3.08 billion equivalent to (USAD59.6 million), and will consume around 22 per cent of Government domestic revenues (tax and non -tax only) in 2021. Over all, the minister informed members that debt services (interest payments plus repayment) this he said is projected to reach D5.97 billion, equivalent to (USD 148.9 million) in 2020.
The minister said in terms of financing the deficit , Domestic borrowing is projected to reach D3.45 million equivalent to (USD66.7 million) , in 2021, this compared to D2.26 billion , which is equivalent to (USD43.7 million) in 2020, whereas capital revenue is expected increase to D1.7 billion, equivalent to (USD32.9million) in 2021.
Minister Mamburey told the members of the National Assembly that, on foreign borrowing, D4.22 billion equivalents to (USD81.6 million) will be borrowed in 2021 to finance development projects, compared to the D4.04 billion, equivalent to (USD78.1million) borrowed in 2020.