this document to -->> Francais
BUDGET SPEECH 2004
PROGRAMME BASED BUDGETING FOR EFFICIENT RESOURCE ALLOCATION AND USE WITH A POVERTY REDUCTION DIMENSION
185. The 2004 budget estimates total revenue and grants at D2581.55 million, which is about 24% of GDP. Hence, total revenues and grants are projected to grow by about 38% from the 2003 approved budget of D1.87 billion to D2.58 billion in 2004. This significant growth in revenues is needed to ease the growing fiscal pressures emanating from expenditures that are non-discretionary in nature. Of this amount, total domestic revenue is estimated at D2171.25 million or about 20% of GDP.
186. Direct and Indirect Taxes account for D1937.7million or 18.5% of GDP. This is further broken down into taxes on Income, profits and capital gains of D543.7 million (21% of total domestic revenue), Domestic Taxes on Goods and Services of D765.2 million (30% of total domestic receipts) and Tax on International Trade of D606.9m (about 24% of total domestic revenues). With the new classification, Non-Tax revenue is estimated at D233.4 million (1.98% of GDP) and Grants are estimated at D410.3 million which is about 4% of GDP of which HIPC receipts are estimated at D169.4 million.
iii. Total Expenditure
187. The total expenditure for 2004 is estimated at D3.8 billion, and this represents an increase of about 31% over the approved total budget of D2.9 billion in 2003. A broad analysis of overall expenditure shows that recurrent expenditure is D2699.8 million and development expenditure for the coming fiscal year is estimated at D1638.19 million. These estimates include expenditure from HIPC funds totaling to D169.4 million. These are monies that were to be paid by the country for its debt service but, thanks to the debt relief provided by donors, are to be utilized by Government for poverty-reducing expenditures only.
iv. Recurrent expenditure
v. Development Expenditure
189. The Development expenditure figure of D1637.79 million is an expansion of about 34.5% from the 2003 amount of D1217.8m. The composition of the development budget is made up of a grant element of D240.9 million representing 14.7% of the total expenditure. Similarly, loan financing account for D1.17 billion or 71.8%, HIPC constitutes D100 million, and The Gambia Local Fund (GLF) account for D120.3 million.
190. The composition of the development budget highlights the active role played by our development partners in addressing the socio-economic needs of our people. Once again, we are appreciative of all donor efforts towards our nation-building initiatives.