Oct 22, 2015, 9:22 AM
The Finance Minister made this statement last Friday when delivering the 2015 budget speech at the National Assembly in Banjul.
The occasion was witnessed by the Vice President of The Gambia as well as senior government officials.
Hon. Kebba Touray told National Assembly members that the increase is principally due to elimination of fuel subsidies, increase in grants, projected increase in efficiency and compliance and to a lesser extent the effect of new measures.
He said further that total Expenditure and Net Lending for the fiscal year 2015 is projected at D 11.7 billion (30.7 per cent of GDP).
Recurrent Expenditure, which is composed of personnel emoluments, other charges and interest, is expected to consume 71.7 per cent of total expenditure in 2015, in comparison to 70 per cent in 2014.
Capital Expenditure is projected to consume almost the same share as in 2014, from 30 per cent of total expenditure in 2014 to a projected 29.3 per cent in 2015.
According to the Finance Minister, the fiscal deficit for the upcoming fiscal year is projected at D 504 million or 1.3 percent of GDP, in comparison to an expected deficit of D 3.4 billion in 2014 or 10 per cent of GDP.
Net Domestic Borrowing for the upcoming fiscal year 2015 is projected at 1 per cent of GDP, a significant decrease from 10 per cent of GDP expected at the end of 2014.
Dilating on the revenue measures, the Finance Minister noted that consistent with the policy of tax for development, the government will introduce the following tax measures from 1st January 2015:
1. Raise the GSM levy from 1.25% to 2.5% - This will generate additional revenues estimated at D33 million.
2. Fuel levy of D 1 per litre for the Road Fund. This measure will generate additional revenues estimated at D88 million.
3. Introduce 35% levy on imported poultry products. This measure will generate additional revenue estimated at D15 million
4. Increase import levies on premix oil from D4.76/L to D11.42/ L. This measure will generate additional revenues estimated at D60 million.
5. Tobacco products - Increase excise tax on cigarettes from D9 per pack to D12 per pack; increase the environment tax on cigarettes from D2/pack to D 2.20/ pack; increase excise tax on other tobacco products from D150/kg to D200/kg; increase environment tax on other tobacco products from D100/kg to D110/kg. These measures will generate additional revenues estimated at D25 million.