The
minister of Finance and Economic Affairs has said the agricultural sector is
anticipated to experience a contraction in 2019 due to poor performance from
the most important subsector crops and livestock. He added that both are
anticipated to decline to 6.2 and 10.0 percent in 2019, compared to 6.6 and 5.6
percent in the previous year.
Mambury
Njie was speaking at the 2020 Budget Speech at the National Assembly on Friday.
He
explained that in terms of sector contribution to GDP, agriculture is forecast to
account for 18 percent, with industry accounting for 20 percent. “This suggests
a structural change in the economy from the previous years as agriculture is
now overtaken by industry; the service sector is projected to maintain its lead
share to GDP of 55 percent, while the remaining 7 percent is accounted by
others,” the minister said.
According
to him, growth in the service sector is expected to decline to 3.6 percent in
2019 from 9.9 percent as recorded a year earlier. He added that the major
drivers of growth in the sector are anticipated from transport and storage,
hotels and restaurants, communication as well as finance and insurance growth
for the sector in 2020 is forecast to grow to 4.9 percent, due to wholesale and
retail trade, transport and storage hotels and restaurants, communication,
finance and insurance.
Mr.
Njie said the total revenue and grants for 2020 is estimated at D24.5 billion
(25 percent of GDP), 3.2 percent fall from 25.3 billion (29 percent of the GDP)
budgeted in 2019.
“Tax
revenue is projected to grow in nominal terms to D11.6 billion (11.8 percent of
GDP) in 2020, compared to D10.4 billion (11.9 percent of GDP) budgeted in 2019,
Non-tax revenue is anticipated to increase to a budget of D2.0 billion in
2019.”
“However,
grant inflows is expected to decline during the 2020 fiscal year to D10.8
billion (11 percent of the GDP) in 2020 compared to D13.4 billion (15.3 percent
of the GDP) in 2019, in 2020 project grants and budget support are budgeted at D8.1 billion and D2.7 billion
respectively,” he noted.
The
minister further stated that total expenditure is expected to decline by 1.7
percent from D28.8 billion in 2019 (33 percent of the GDP) to D28.3 billion
(28.8 percent of GDP) in 2020.
He
explained that this drop is due to the 9.3 percent decline in the other current
expenditure sub-component which was large enough to offset the increases in
other expenditure, which is budgeted at D18.2 billion in 2020 compared to D20.1
billion in 2019.
