Government of The Republic of The Gambia - 2020 Citizen’s Budget 1

TABLE OF CONTENTS

List Of Abbreviations And Acronyms --------------------------------------------------- II

List Of Figures And Tables ---------------------------------------------------------------- II
Message From The Minister Of Finance And Economic Affairs ------------------- 1
Section I: Introduction ----------------------------------------------------------------- 2
1.1 What Is A Citizens Budget? ---------------------------------------------- 2
1.2 What Is A Budget? ---------------------------------------------------------- 2
Section II: How Government Plans To Raise And Spend Money In 2020 --------- 3
2.1 What Is Government Revenue? -------------------------------------------- 3
2.2 What Is Expenditure? ------------------------------------------------------ 4
2.3 Where Is The Money Coming From? ---------------------------------------- 5
2.4 How Government Plans To Spend --------------------------------------- 5
2.4.1 Expenditure ----------------------------------------------------- 5
2.4.2 How Government Will Distribute Expenditure -------------------- 6
Section III: 2020 Spending In The Critical Sectors ------------------------------------ 8
Social Sector ------------------------------------------------------------------------ 8
Education -------------------------------------------------------------------- 8
Health ------------------------------------------------------------------------ 8
Youth & Sports -------------------------------------------------------------- 9
Women, Children & Social Welfare -------------------------------------- 9
Economic Sector ------------------------------------------------------------------- 10
Agriculture ------------------------------------------------------------------ 10
Fisheries And Water Resources ------------------------------------------ 10
Infrastructure, Works And Transportation ----------------------------- 11
Information and Communication Infrastructure ---------------------- 11
Petroleum, Energy & Environment --------------------------------------- 12
Trade & Tourism ------------------------------------------------------------- 12
Section IV: Global Outlook, Gambian Economy, And Fiscal Measures --------- 13
4.1 The Global Economic Outlook And Gambian Economy ---------------------------- 13
Excise Regime On Tobacco Products -------------------------------------------- 14
4.2.3 Other Policy Actions -------------------------------------------------------- 14

Section V: Conclusion --------------------------------------------------------------------- 15

References And Glossary---------------------------------------------------------- 16
6.1 Reference ----------------------------------------------------------------------- 16
6.2 Glossary (Budget Terminology) --------------------------------------------- 16

I Government of The Republic of The Gambia - 2020 Citizen’s Budget

LIST OF ABBREVIATIONS AND ACRONYMS
BADEA - Arab Bank for Economic Development in Africa
EU - European Union
GDP - Gross Domestic Product
GLF - Government Local Fund
IEC - Independent Electoral Commission
MOA - Ministry of Agriculture
MOBSE - Ministry of Basic and Secondary Education
MOYS - Ministry of Youth and Sports
MOP&E - Ministry of Petroleum and Energy
MOD - Ministry of Defence
MOI - Ministry of Interior
MOTWI - Ministry of Transport, Works & Infrastructure
MOICI - Ministry of Information, Communication & Infrastructure
MOT&C - Ministry of Tourism and Culture
MOFA - Ministry of Foreign Affairs
MOJ - Ministry of Justice
MOFEA - Ministry of Finance and Economic Affairs
MOLRG - Ministry of Lands and Regional Government
MOH - Ministry of Health
MOECC&W - Ministry of Environment, Climate Change and Wildlife
MOFWR - Ministry of Fisheries and Water Resources
MOHERST - Ministry of Higher Education, Research, Science and Technology
MOWC&SW - Ministry of Women, Children and Social Welfare
MRC - Medical Research Council
MTEF - Medium Term Expenditure Framework

NDP - National Development Plan

PBB - Programme Based Budgeting

PSC - Public Service Commission
PFM - Public Financial Management
UNICEF - United Nations International Children’s Emergency Fund
US - United States
UTG - University of The Gambia

LIST OF FIGURES AND TABLES

Figure I - Overview of the budget process
Figure II - Tax, Non-Tax, and Donors
Figure III - Total Recurrent and Development Expenditure 2020 –Loans, Grants and GLF
Figure IV - Distribution of Budget by Ministry/Department in Dalasi (‘000)- GLF Only
Figure V - Distribution of the Budget by Ministry/Department - Loans grants and GLF in GMD

Table I - 2020 Budget Appropriation

Table II - Breakdown of Tax on Tobacco

Government of The Republic of The Gambia - 2020 Citizen’s Budget II

MESSAGE FROM THE MINISTER OF FINANCE AND ECONOMIC AFFAIRS

-
proved budget estimates aimed at communicating key Public Finance
information and development objectives of the Government of The
Gambia to its citizens, whilst adhering to budget transparency and

resources.

great need for them to know what the national budget entails and to
encourage them to play an active role in the budget process.
As at end 2019, The Government of the Gambia has made some notable gains towards the imple-
mentation of the National Development Plan (NDP) as highlighted on the Annual Progress Report
(APR). The APR offers us the opportunity to assess our performance to date and how to accelerate
inclusive growth.

-
ty and implementing institutional reforms. The Budget is also designed to implement intervention
programmes to help improve the lives and livelihoods of the most vulnerable members of the society.
Some of these intervention programmes include:

• The Social Safety Net Project

• The National Health Insurance Scheme
• Programme for Accelerated Community Development (PADC)
• School Feeding Programme and School Bus Service
• Banjul Rehabilitation Project

In addition, the Government has requested from its external creditors for debt restructuring, to
defer both interest and principal payments on loans owed by the Government for a period of 5 years.
-
ment spending.

The Government is also delivering on its promise in the areas of improved political and economic
governance as well as infrastructural development. We will continue to ensure we implement a bud-
get that truly serves the interest of the most vulnerable and that citizens are empowered through

Honorable Minister of Finance and Economic Affairs, The Republic of The Gambia

1 Government of The Republic of The Gambia - 2020 Citizen’s Budget

SECTION I: INTRODUCTION

1.1 What is a Citizens Budget?

-
standing of the budget to the level of every citizen. It summarizes and gives basic information for citi-
zens to understand how public money is being managed; starting from where Government intends to
get money from and how it intends to spend it.

The main purpose of the Citizens Budget is to increase awareness, create an open and inclusive bud-
get process required for citizens to participate in Government affairs thereby empowering them to
participate in the budget process more meaningfully so that they can hold Government accountable.

1.2 What is a Budget?

A national budget is a plan that outlines public priorities and the activities needed to fully implement
them. In detail, it sets out where the government’s money comes from and how the money is being
spent and why. The national budget is made up of tax and non-tax revenues which are spent on things
such as education, health care, and infrastructure. The GoTG national budget runs over a period of
12 months starting from 1st January to 31st December (both dates inclusive).

The budget further acts as a tool that the government uses to weigh up various needs and decide

the goals to which the Government is most committed.

The budget process goes through four main stages: the formulation, approval, execution and over-
sight functions as shown in the diagram below:

Government of The Republic of The Gambia - 2020 Citizen’s Budget 2

Figure I: overview of the budget process - Reference: International Budget Partnership (IBP)

SECTION II: HOW GOVERNMENT PLANS TO RAISE AND SPEND MONEY IN 2020

2.1 What is Government Revenue?

Revenue refers to all the money available to a government ranging from taxes, non-taxes and donor
support (loans and grants) to be spent on delivering public goods and services.

TAX: This is the amount of money citizens pay to the Government so that it can pay for public ser-
vices such as hospitals and roads. It can be in the form of a person’s income (income tax), a company’s

NON-TAX: This is the amount of money available to the Government from sources other than taxes
such as passport fees, motor vehicle licenses (registration), number plates, etc.

DONOR SUPPORT: These are funds that the Government receives from development partners in
the form of loans (money the government has to pay back) or grant (money that the government does
not have to pay back)

3 Government of The Republic of The Gambia - 2020 Citizen’s Budget

Figure II: Tax, Non-Tax and Donor Funds

2.2 What is Expenditure?

Government expenditure refers to the payment for goods and services that include public consump-
tion (for example, health care services) and public investment (for example, roads and hospitals).
Expenditure can be divided into two main groups: Recurrent and Development Expenditure.

Recurrent expenditures: these are expenses related to

the day to day spending by Ministries, Department and
Agencies for operating a programme. These are sometimes
referred to as operating cost such as salaries of public ser-
vants, purchase of fuel, etc.

Development Expenditures: these are expenses that are

longer term in nature, mostly on major infrastructure proj-
ects such as school buildings, hospitals, sewage treatment
plant, building of roads and bridges etc.

Government of The Republic of The Gambia - 2020 Citizen’s Budget 4

2.3 Where is the Money Coming From?

Total revenue and grants for 2020 is estimated at

D24.4 billion which comprises of D13.6 billion of do-
mestic revenues (tax and non-tax) and D10.8 billion
of project grants & budget support.

2.4 How Government Plans to Spend

2.4.1 Expenditure
For 2020, 28.34 billion has been allocated for spending on programmes and activities.
Some of the notable expenditures are as follows:

Figure III: Total Recurrent and Development Expenditure 2020 –Loans, Grants and GLF

5 Government of The Republic of The Gambia - 2020 Citizen’s Budget

2.4.2 How Government Will Distribute Recurrent and Development Expenditure

In 2020, the Government plans to spend the following amounts in the various ministries and depart-
ments to sustain government operations and fund development projects and programmes.

Table I: 2020 Budget Appropriation

Government of The Republic of The Gambia - 2020 Citizen’s Budget 6

Figure IV: Distribution of the Budget by Ministry/Department - GLF Only in GMD (000s’)

Figure V: Distribution of Budget by Ministry/Department in Dalasi (‘000)-Loans, grants and GLF

7 Government of The Republic of The Gambia - 2020 Citizen’s Budget

SECTION III: 2020 SPENDING IN THE CRITICAL SECTORS
SOCIAL SECTOR

Education
In order to provide access and quality education to develop the country’s human capital, the govern-
ment intends to allocate an amount of D4.6 billion to this sector.

Free Education (Government will continue

to pay for public school tuition fees and costs
of books)

Construction and rehabilitation of educa-

tional infrastructure in Madrassas, conven-
tional and tertiary institutions (GTTI, MDI,
Gambia College and UTG) to address the
issue of access and accommodation at all
levels.

Rolling out of the school feeding programme

to all the regions which is expected to help
increase enrolment and attendance.

Teaching and learning material for special

need students.

Training on inclusive practices with emphasis

on early childhood development.

Health
To ensure people’s access to quality health services; the government continues to give priority fo-
cus on health programs, especially those that cater to marginalized Gambians with a budget of D2.2
billion.
Refurbish Edward Francis Small Teaching
Hospital (EFSTH) and 10 other health facil-
ities across the country with the view of in-
creasing maternal health and immunization.

Provide a reliable referral system which will

contribute to the achievement of key health
indicators such as Maternal Mortality Rate,

Rate.

A budget of D100 million is allocated for a

National Health Insurance Scheme (NHIS)
which would offer access to affordable
medicines and vaccines to the poor and the
vulnerable.
Government of The Republic of The Gambia - 2020 Citizen’s Budget 8
Youth & Sports
The government intends to allocate an amount of D 113.4 million to this sector.

Expand the Youth Agricultural Service Cen-

ter project to two regions (URR & NBR).

Provide group leadership management and

enterprise development training to youth
groups.

Renovate facilities and recruit youths for

Apprenticeship skill training.

Provide and promote entrepreneurship and

mentoring services for differently abled
youths.

Women, Children & Social Welfare

As part of efforts to tackle extreme poverty and empower women and children, the government
intends to allocate an amount of D 79.1 million to this sector.

Strengthen information management sys-

tems for case management of children on
the move at the national and regional level.
Reinforce coordination mechanisms (in par-
ticular with neighboring countries) across
child protection systems and harmonized
cross-border/regional case management
procedures

Women Enterprise Fund totaling 200 Million

of which 5 Million is allocated from the Do-
mestic Budget which will be used to increase
the productivity potential of women entre-
preneurs especially in rural regions.

Implementation of a Social Safety Net Proj-

ect to target the most vulnerable with Cash
Transfers.

9 Government of The Republic of The Gambia - 2020 Citizen’s Budget

ECONOMIC SECTOR

Agriculture
In 2020, the government intends to allocate an amount of D2.5 billion in the agriculture sector.

Rehabilitate Mixed Farming Centers and

procure agricultural inputs (fertilizers, seeds
and chemicals).

Intensify Climate Smart Agriculture through

the introduction of new varieties (Findi,
Groundnut, Sweet Potato).

Increase livestock production and produc-

animal products.

Provision of drugs, vaccines and strengthen

disease surveillance system and control.

With the Japanese KR2 Project, MOA will

distribute 50 tractors to farmers across the
country.

D150 million for the procurement of agricul-

tural inputs.
Fisheries and Water Resources
In 2020, the government intends to allocate an amount of D80.1 million to this sector.

The EU-GAMBIA Sustainable Fisheries Part-

nership Agreement would in 2020, embark
on a program to support management mea-

Protection and Conservation of fragile eco-

systems.

Construction of Sanitation facilities for Low-

er Basic School, Upper Basic School & Senior
Secondary School in NBR, CRR, URR, LRR,
WCR & KMC

Construction and rehabilitation of Water

Supply Systems for Schools and Health Facil-
ities in NBR, CRR, URR, LRR, WCR & KMC

Government of The Republic of The Gambia - 2020 Citizen’s Budget 10

Infrastructure, Works and Transportation
As part of Government’s effort to improve the transport sector, a budget of D4.1 billion has been
budgeted for the transport sector in 2020.

The Banjul Rehabilitation Project will re-

vamp the city of Banjul. It includes rehabil-
itation of roads, sewage and drainage sys-
tems of the city.

Saudi Fund for Development (SFD) has pro-

-
struction of selected urban roads within the
Greater Banjul Area.

Road safety sensitization and awareness

creation.

Construction and maintenance of roads

across the country including Kotu Bridge
and Soma-Sankwia Road from the Road
Fund.

Construction of the Basse-Fatoto-Koina

Road/Bridge Project

Information and Communication Infrastructure

In 2020, the government intends to allocate an amount of D51.8 million to this sector.

Upgrade the electronic government Data

Centre in order to enhance its hosting ca-
pacity and capability.

Operationalize the National ICT Agency to

implement all ICT projects and programs on
behalf of the government.

11 Government of The Republic of The Gambia - 2020 Citizen’s Budget

Petroleum, Energy & Environment
In 2020, the government intends to allocate an amount of D1.94 billion to this sector.

The Green Mini-grid Project seeks to expand

energy access to homes and businesses for
about 60% of the population in the West
Coast Region.

72 MW of electricity will be available to The

Gambia as its share through the construc-
tion and operation of the OMVG project.
The project should offset a lot of our energy
dependence on heavy fuel and also reduce
CO2 emissions.

Currently the inter-connection line is under

construction and will provide electricity sup-
ply to a 100km radius which will be linked to
the national grid and the OMVG will ulti-
mately be linked to West Africa power Pool
(WAPP) to solve the energy problem in the
country.

Trade & Tourism

In 2020, the government intends to allocate an amount of D880.9 million to this sector.

Establish a functional and comprehensive

database for trade, industry and employ-
ment data.

Through the Entrepreneurship Support Proj-

ect, funded by UNDP, youths will be trained
on marketable skills such as vehicle diagnos-
tic, Satellite and Solar Installation, Fibrous
Plastering, Computer and Mobile Repair, and
Electrical Engineering.

Rehabilitation and development of tourism

facilities to increase tourist arrivals and
boost rural economy.

Development of the Onsite Campus of the

Gambia Tourism and Hospitality Institute.

Government of The Republic of The Gambia - 2020 Citizen’s Budget 12

SECTION IV: GLOBAL OUTLOOK, GAMBIAN ECONOMY, AND FISCAL MEASURES

4.1 THE GLOBAL ECONOMIC OUTLOOK AND GAMBIAN ECONOMY

Global growth is projected to rise from an estimated 2.9 percent in 2019 to 3.3 percent in 2020 and
3.4 percent for 2021, a downward revision of 0.1 percentage point for 2019 and 2020 and 0.2 for
2021 compared to those in the October World Economic Outlook (WEO). The downward revision
-
bly India, which led to a reassessment of growth prospects over the next two years. In few cases, this

4.2 FISCAL POLICY MEASURES

To achieve the 2020 budget objectives given the economic situation, government will need resources
to undertake investments in priority sectors as indicated in the NDP. The actions to raise money in
2020 are referred to as Government revenue measures and the actions to effectively spend public
funds to the best of its ability is referred to as expenditure measures.

4.2.1 REVENUE MEASURES

The revenue measures are the actions that Government intends to undertake to generate or raise
the necessary revenue (money) to implement policy actions by which the development objectives
may be achieved.

• Duty exemption forms are revised as follows:

• Diplomatic missions from D1,000 to D2,000
• Returning diplomats from D1,000 to D2,500
• Government Projects from D1,500 to D5,000
• NGO’s and Religious Institutions from D1,000 to D5,000
• Customs processing fees will be charged at the rate of 1.5 percent in 2020 as compared to 1.0
percent in 2019.

4.2.2 EXPENDITURE SAVING MEASURES

Government recognizes the importance of complementing effective revenue administration with
good expenditure management in order to attain the objectives of the NDP. In addition to the rev-
enue measures mentioned, government will also implement these expenditure saving measures to
better utilize government funds:

• Ensure discipline in spending public funds by adhering to the budget execution guidelines
• Control the accumulation of arrears
•
• Posting of internal auditors to MDA

13 Government of The Republic of The Gambia - 2020 Citizen’s Budget

EXCISE REGIME ON TOBACCO PRODUCTS

Table II: Breakdown of Tax on Tobacco

These measures highlighted above will generate the revenue needed to help the Government imple-
ment key NDP activities.

4.2.3 OTHER POLICY ACTIONS

In addition to the revenue and expenditure measures mentioned above, the government intends to
take additional policy measures to achieve the budget objectives:

Restructure the stock of public debt by requesting for debt deferral (5 years) on both external inter-
est and principal payments owed by the government.

State-owned enterprises (SOEs) with Performance Contracts that will set targets for the SOEs to

4.3 DEFICIT FINANCING

-
-

Government of The Republic of The Gambia - 2020 Citizen’s Budget 14

SECTION V CONCLUSION

The Gambia has registered positive gains in domestic resource mobilization, increased spending
on poverty-reducing programs and achieved progress on the priority arears set out in the NDP.

mobilization, improved expenditure control and debt management.

nomic stability and implementing institutional reforms. The Budget further aims to stabilize the
public debt, build on a continued strong domestic revenue performance, and strengthen our commit-
ment to improve the lives and livelihoods of the most vulnerable members of the society. The debt

15 Government of The Republic of The Gambia - 2020 Citizen’s Budget

REFERENCES AND GLOSSARY

6.1 REFERENCE

• Budget Speech, 2020, The Republic of The Gambia

• Estimates of Revenue and Expenditure 2020, The Republic of The Gambia
• Medium Term Fiscal Framework (MTFF), 2020-2024
• National Development Plan, 2018-2021

6.2 GLOSSARY (BUDGET TERMINOLOGY)

Accountability: This is when the Government is answerable to its citizens by accounting for its activ-
ities and disclosing the results of such actions; this may include the responsibility for money or other
properties that Government holds in trust.

All Funds: These include all resources expected for Government, including Government resources
including Tax and Non-Tax revenues, Loans and Grants

Amortization (domestic): This refers to paying off debt incurred within the country overtime with

Amortization (foreign): This refers to paying off debt incurred internationally over time in regular

Budget: A budget is a plan that outlines where to get money from and what to spend it on.

This occurs when Government expenditure is more than revenue.

Budget support: This is donor funding that is given to a recipient Government which is usually allo-
cated to sector budgets according to the national priorities.

Capital Expenditure: This is money spent on major infrastructure projects such as roads, schools,
hospitals, bridges, transport, water systems, plant and machinery etc.

Compensation of Employees: This is made up of salaries and salary-related allowances, social securi-
ty, gratuities etc. paid to public sector workers.
Custom processing fees are taxes levied on import and export of goods.

Development Partners (DPs): This refers to countries and/or organizations that assist developing
countries to achieve their developmental goals. DPs can be multilateral, e.g. International Monetary
Fund (IMF), World Bank, African Development Bank (AfDB) etc. or bilateral which consists of individ-
ual countries like Germany, United Kingdom, United States of America (USA), etc.

Domestic revenue: This is revenue that is raised within the borders of a country through tax and
non-tax revenue. This can include taxes paid by citizens through personal tax, corporate tax, value
added tax, commercial rent tax etc.

Economic growth: refers to the increase in the quantity of goods and services in a country. It can be
Government of The Republic of The Gambia - 2020 Citizen’s Budget 16
measured by changes in Gross Domestic Product (GDP)

Government Local Fund (GLF): The amount of money from locally generated revenues which is avail-
able for the Government to spend.

Goods and Services: Products, Items, consultancies or services that Government acquires or pays
for to assist in running its operations for smooth service delivery to the public.

Grants:
which they do not have to pay back.

Gross Domestic Product (GDP): This refers to the total value of all goods and services produced in
-
vices over a period of time.

Fiscal policy: is the means by which a government adjusts its spending levels and tax rates to monitor

Interest Payments: This is the amount of money that is paid on the loans lent to the Government.

Loan Repayment:
have lent money to the Government for development projects or other expenditure. These lenders
could be from within or outside the country.

Macroeconomic stability: The condition of minimized vulnerability to economic shocks and in favor
of increased economic growth.

Non-Tax Revenue: This is Government revenue not generated from taxes, examples are fees for
granting permit or licenses, sale of government properties, etc.

Payment gateway platform: a platform to facilitate payment transaction between banks through a
single account

Performance Contracts: State Owned Enterprise sector performance contract is about results and
impact: A performance contract in the SOEs sector means the target set by the authority for the
SOEs in terms of the Key Performance Indicators (KPI) agreed. The KPI is a tool that measures or
-
ery.

Primary Balance: This refers to primary expenditure minus interest expenditure.

Projected Growth Rate: This refers to the expected positive state of the Gambian economy in a year.

Public Debt: This is the total amount owed by government to domestic or external entities

Revenue: This is the total amount of money that the Government receives for its activities from both
domestic and external sources.

Subsidy:

17 Government of The Republic of The Gambia - 2020 Citizen’s Budget

Transparency: This is when the Government provides adequate and timely information to its citizens
about what it is doing.

Treasury Single Account (TSA): public accounting system where the government revenue and in-
come are collected into one single account

Value Added Tax (VAT): The tax levied as value is added to goods and services at each stage of their
production or distribution processes.

year 2020. If you would like to read more detailed information and analysis, visit the Ministry of
Finance and Economic Affairs’ website on: http:www:mofea.gm

To provide feedback and comments on the Citizens Budget, you can contact the Ministry of Finance
and Economic Affairs by:
Email: info@mofea.gm
Telephone: +220 4229760
Address: The Quadrangle, Banjul

Government of The Republic of The Gambia - 2020 Citizen’s Budget 18

 Prepared by
The Budget Directorate
Ministry of Finance and Economic Affairs

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