XIII. FISCAL PROJECTION FOR 2002

i. Revenue

Mr Speaker, Sir,

1. Revenue forecast for the year 2002 has been influenced by the outturn in 2001 and by the anticipated economic performance of the coming year. The total consolidated revenue is projected at D1.4 billion in 2002, which is 7.6% higher than the program target of D1.3 billion in 2001. The anticipated revenue for 2002 is comprised of a tax revenue of slightly over D1 billion, grants of D247 million, D98.3 million of government service charges and the balance of D64.9 million is accounted for by repayments of loans, interest dividends and property income plus pensions contributions.

ii. Expenditure

2. The expenditure forecast for the coming year amounts to D1.5 billion which is further decomposed into D1.2 billion of recurrent expenditure and a capital expenditure and net lending budget of D324 million. The targeted level of deficit excluding grants and HIPC funds is 3.6% of GDP. The budget incorporates HIPC poverty reducing spending anticipated to be D74.8 million for the coming year. This funding is available to the Gambia with the interim debt relief under the enhanced HIPC Initiative. Furthermore, the 2002 budget also reflects the key sectors’ priorities that emanate from the PERs in the health, education and the agricultural sectors.

iii. Revenue Measures

Mr Speaker,

3. In government’s
4. drive to enhance revenue collection also, Government is considering the establishment of a Revenue Authority following recommendations from an IMF tax mission. As part of efforts to strengthen and further consolidate government’s revenue base, we would review the following rates with effect from 1^st January 2002. This revision will help make these rates more reflective of the prevailing economic situation in addition to securing revenue.
5. They include:

1. The admission rate for Legal Practitioner has been raised from D787.50 to D1, 500.
2. The admission rate for Notary Public is increased from D157.50 to D250.
3. The fees on Casinos are raised from D250, 000 to D350, 000 per premise.
4. Gaming and Amusement fees increased from D125, 000 to D250, 000 per premise.
5. Expatriate tax is reduced from D20, 000 to D10, 000.
6. Revenue tax on new vehicles from

1. 1000 cc to 2000cc is reduced from 20% to 15%
2. 2000cc and above is also reduced from 35% to 25%

7. Transport Allowances for civil servants are increased from D150 to D250 per month.
8. Finally there is a 6% across the board salary increase to help retain skilled staff following a wage freeze for senior personnel in 2001.

7. The rest of the measures covering Mortgage, Releases, Agreement, Bills, Deeds, Assignment, Bonds, Memorandum and Insurance Policy can be obtained from the table attached in the appendix to this budget speech.

-end.