In his statement in laying the Estimates for the year 2025 the Minister of Finance and Economic Affairs told the National Assembly members that the country experienced expenditure shocks in 2024 which created difficulties in meeting budgetary outlays.
In fact readers would recall explanation given by the Minister of Works, Transport and Infrastructure on delays in receiving funding from the Ministry of Finance for the completion of some of the road projects due to difficulties in receiving expenditure outlays on time. The Minister cited two causes of the expenditure shocks:
“The expenditure budget execution has been particularly difficult this year to unanticipated expenditure shocks. These include the intervention of the Government to the tune of $20 million to pay Nawec arrears with the independent power suppliers. These payments served as tariff compensation to cushion the population from tariff increase which would have put toll economic challenges to the citizens.
“Other expenditure pressures came from the hosting of a very successful OIC Summit. The anticipated financial support for hosting of the summit was not realized and the Government was obliged to bankroll expenditures related to the Summit.”
It is important for the reader to note that the Minister did not indicate how much was spent on what he termed as a very successful OIC Summit. He also did not qualify the $20 dollar or 1.5 billion dalasi debt paid on behalf of Nawec.
The Public Finance Act provides regulations that should prevent expenditure shocks especially those that may arise from public enterprises. The fact that the Minister is acknowledging that the OIC Summit did result to expenditure shocks confirms the need to do cost benefit analysis of the summit to determine whether it served The Gambia or not.
Foroyaa will focus on the debt burden of the country and the expenditure shocks that the Minister has mentioned with a view to determining the economic health of the country and further emphasise the need for financial discipline in managing the affairs of the country.
