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BUDGET SPEECH 2006

PROGRAMME BASED BUDGETING FOR EFFICIENT RESOURCE ALLOCATION AND USE WITH A POVERTY REDUCTION DIMENSION


Mr. Speaker, Sir.

iv. CO-OPERATION AND INTEGRATION

42) Stability is the key to any meaningful growth and development, and no meaningful development can take place in the absence of peace and security. It is for this reason that The Gambia's Foreign Policy is under pinned by the fundamental principle of the maintenance of international Peace and Cooperation for Development. Guided by this, The Gambia Government will continue to be in the fore front of peace initiatives both in the Sub-region and beyond. Furthermore, Government has continued to cooperate with its development partners to ensure greater prosperity for the Gambian people.

43) The coming year will be very crucial for The Gambia, as the country prepares to host the African Union (AU) Summit in July, 2006. Government will continue to cooperate with friendly countries and other organizations, institutions, and individuals to ensure the success of the upcoming African Union Summit, which will be a landmark in The Gambia's diplomatic history.

a. Bilateral Relations

44) At the bilateral cooperation level, The Gambia has, over the past year, initiated and sustained efforts at convening sessions of Joint Ministerial Commissions, notably with Senegal, Mauritania, Guinea Bissau, Mali, Nigeria, Cuba, Iran and other countries. These efforts are geared towards facilitating trade and other cooperation arrangements, which are expected to contribute to the creation of wealth, prosperity and genuine cooperation.

45) In this global village, development effort has ceased to be the sole responsibility of individual sovereign nations. It is now a task that is shared with friendly nations, international organizations, and institutions. Along this line, and through various cooperation agreements, The Gambia has continued to receive assistance from various bilateral partners in different areas of development. The Gambia Government would like to recognise the contributions of the United Kingdom, Egypt, Federal Republic of Germany, Japan, United States of America, France, Republic of China (Taiwan), Iran, Italy, Kingdom of Netherlands, Kingdom of Belgium, Turkey, Saudi Arabia, Kuwait, Qatar, the Kingdom of Morocco, the Libyan Arab Jamahiriya, India and Pakistan. Government has recently concluded bilateral agreements with the South East Asian countries of the Philippines, the kingdom of Thailand and Indonesia, and also the Latin American country of Brazil. We applaud their assistance to The Gambia, as we look forward to further cooperation. The Gambia continues to enjoy close cooperation with her neighbours namely, Senegal, Guinea Bissau, Guinea Conakry, Mauritania, Sierra Leone, Ghana and Nigeria. This cooperation will also be extended to the newly elected Government of Liberia.

b. Sub-Regional Cooperation and Integration

46) The predominant activity in the Economic Community of West African States (ECOWAS) region for the past few years has been the drive towards establishing the second monetary zone, as the first stage towards realizing the goal of a West African Monetary Zone (WAMZ). Since its inception in 2000, the West African Monetary Institute (WAMI) has come a long way towards launching the ECO, the proposed single currency for the WAMZ countries. However, the macroeconomic environment in most WAMZ member countries was not conducive enough to launch the ECO on the 1st July, 2005 proposed date. The new date slated for for the launching of the ECO is 1st January, 2007.

47) For the end-year (2005) assessment of the attainment of the primary convergence criteria for the West African Monetary Zone (WAMZ) countries, The Gambia has attained, as of September 2005, three of the four primary convergence criteria, namely: inflation, borrowing from the Central Bank, and gross official reserves. The budget deficit Primary Convergence Criterion has been missed.

48) As the essence of the single currency is to further enhance trade within the sub region, other ECOWAS protocols that support the free movement of goods, services and persons are being reactivated, and implemented. Government is also committed to other ECOWAS initiatives, such as the implementation of the Ecowas Common External Tariff. The Gambia has committed itself to the full implementation of the ECOWAS Common External Tariff (CET) to facilitate intra-regional trade as a means of regional integration. The full implementation of the ECOWAS (CET) will lead to the establisment of a Customs Union within the sub-region, and eventual integration of the African region, and help attract greater investments to Africa.

49) At the level of the African Union (AU), the prevailing and underlying force for economic reform and development has been the New Partnership for Africa's Development (NEPAD). NEPAD aims to consolidate democracy and sound economic management in order to promote peace, stability and development in the continent.

Mr. Speaker, Sir.

c. Relation with Development Partners

50) Government has continued to strengthen the country's relationship with its development partners. In this respect, Government is currently making all efforts to strengthen relationship with the European Union, and has recently signed an Agreement to upgrade EU representation in The Gambia. Government has, also, during the course of the year, continued to receive substantial support from the World Bank, UNDP, UN related Agencies, and the ADB/ADF, in various fields of the country's development. Other donor partners in our development efforts include BADEA, the Kuwaiti Fund, the Saudi Fund, the Islamic Development Fund and the OPEC Fund, etc.

51) I would like to inform the National Assembly of the eligibility of The Gambia for the Millennium Challenge Account (MCA). This Account affords eligible countries access additional resources to assist them towards achieving their development targets of global recognition. The MCA is not for new strategies; rather, proposals for funding from the Account should be based on a nation's own national development strategy, such as the World Bank and the IMF-initiated Poverty Reduction Strategy papers (PRSP). This is to strengthen the synergies of local ownership, donor coordination, and policy coherence.

-end.


I. INTRODUCTION
II. THE WORLD ECONOMY
III. THE DOMESTIC ECONOMY
IV. CO-OPERATION AND INTEGRATION
V. DEVELOPMENT STRATEGY FOR 2006
VI. GOVERNANCE
VII. FINANCIAL PERFORMANCE OF PUBLIC ENTERPRISES
VIII. FISCAL PROJECTION FOR YEAR 2006
IX. CHALLENGES FACING THE 2006 BUDGET
X. REVENUE AND BUDGETARY MEASURES FOR 2006
XI. CONCLUSION