WHAT DISEASES OF THE ECONOMY DID THE MPC REVEAL IN THEIR PRESS BRIEFING?

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Two illnesses that are linked have been revealed by the monetary policy committee. One of them is the budget deficit which stands at 6.4 billion dalasi and the other is the rise in domestic debt to 38 billion. The two are interrelated.

The rise in budget deficit must ultimately lead to a rise in domestic borrowing. The fact of the matter is that the debt of the country which has gone beyond 91 billion dalasi is not sustainable and The Gambia will be in the bad books of its creditors if it cannot increase its debt sustainability. It is important for the country to review its revenue generation budget as well as grants. Credible performance in its reform programme in order to earn the support of its development partners. If the government has not measures to wean donor grants it has to work on its promises of reform so as to earn more credibility before the eyes of its development partners.