Mr. Speaker, Sir,
155. In this Budget Speech, I have reviewed certain
trends and developments in the International economy. But, I have concentrated
mainly on the domestic economy, providing figures and other details
on the outcome of the various Government policies and programmes undertaken
in 2004. The results have shown an impressive Real GDP growth of 8 per
cent, inflation down to 10.5 per cent, and the possibility of a 9 per
cent inflation rate at end-December, 2004. Money supply will only grow
by 5.3 per cent, and the overall balance of payments registering a surplus
of D797.8 million. The gross official reserves of D2.4 billion amounts
to 4.7 months of import cover. The exchange rate has stabilized, and
the Dalasi has appreciated against the US Dollar, the Euro and the CFA
franc. The budget deficit has been reduced to 3.75 per cent of GDP,
and Domestic Revenues have now increased to 20 per cent of GDP.
156. The Government will build on these achievements,
and continue implementing sound and prudent fiscal and financial policies
in 2005. In 2005, Government has set for itself the goals of building
upon the gains of macroeconomic stability so far achieved, reducing
the growth of the domestic debt to free more resources for poverty –
reducing expenditures in the social sectors, settling domestic arrears,
maintaining, and in certain cases expanding, the urban and rural road
infrastructure; maximizing the contributions to the budget and the economy
of the tourism and fisheries sectors, and revitalizing the energy sector
to guarantee within a reasonable time 24 hours uninterrupted electricity
supply at reasonable and affordable costs. The Government will continue
the bold policies that will reduce inflation to 4.5 per cent by the
end of 2005, and the budget deficit to 4.5 per cent of GDP. The official
reserves will be brought to 4.7 months of import cover. In this environment,
interest rates will definitely further come down. Once the economic
fundamentals are strongly stabilized, poverty can be significantly reduced,
and the benefits of growth can trickle down to the ordinary citizenry.
Mr. Speaker, Sir,
157. Let me conclude by reassuring the Nation that
this Government will continue to do everything in its powers to uplift
Gambians from poverty. And the Government calls on all Gambians, at
home and in the Diaspora, to own the Development Agenda of this country.
If we all work together in the supreme interest of the country, together
we shall succeed.
-end.