Speaking before legislators Thursday, Mambury Njie said the increment is mainly attributed to protect grants projected to come from our development partners, which is expected to reach D8.8 billion ($170.2) compared to D8.1 billion ($156.7) in 2020
According to him, total tax revenue is projected to marginally increase by 5 percent to D12.2 billion, ($235.9) compared to D11.6 billion ($224.8) in 2020, whilst non-tax revenue is projected to decrease by 23 percent to D1.53 billion ($29.59 million) compared to D2 billion (38.6 million) in 2020.
Mr. Njie said the 2021 budget will factor budget support amounting to D3.2 billion ($61.9 million) from development partners, compared to D2.7 billion ($52.2 million) in 2020.
"The total budget support expected from the European Union in 2021 is 13.5 million Euros (D224.4 million), whereas an additional $7 million (D135,396) is expected to come from the African Development Bank, and $20m (D1386.8 million) from the World Bank," he said.
He added that total expenditure and net-lending is projected to increase from D28.3 billion (D547.4 million) in 2020 to D31.90 billion (D617 million in 2021, representing a growth of 12 percent. The bulk of this is related to capital expenditure, more specifically, the funding of various roads projects across the country.
“However, (non- interest expenditure) expenditure is estimated to expand by 4 percent, from D18.28 billion ($353.5 million in 2020 to D18.97 billion ($366.9 million) in 2021. This growth mainly stems from the social sectors (health and education in particular), transfers to agencies, and expenses associated with the upcoming voter registration and presidential elections.
Finance minister said capital expenditure is expected to register a growth of 88 percent to D4.9 billion ($94.7 million) in 2021, from D2.6 billion ($50.3 million) in 2020, mainly as a result of the upcoming OIC infrastructure projects and other road construction projects (rural and urban roads) under the Ministry of Works, Transport and Infrastructure.
Njie added that debt interest payment is protected to reach D3.08 billion ($59.6 million) and would consume around 22 percent of government domestic revenue (tax and non tax only) in 2021. "Overall debt service (interest payments plus amortisation) is protected to reach D5.97 billion ($115.5 million) in 2021 from D7.7 billion ($148.9 million) in 2020, thereby registering a drop of 22%. This is due to the debt deferral negotiated with some of our multilateral creditors.”
He said in terms of financing the deficit, domestic borrowing is projected to reach D3.45 billion ($66.7 million) in 2021, compared to D2.26 billion ($43.7 million) in 2020, whereas capital revenue is expected to increase to D1.7 billion ($32.9 million) in 2021.
On foreign borrowing, he explained, D4.22 billion ($81.6 million) will be borrowed in 2021 to finance development projects, compared to the D4.04 billion ($78.1 million) borrowed in 2020.