Hon. Seedy Keita Minister Of Finance & Economic Affairs

On Monday, Seedy Keita, Minister of Finance, tabled the estimates of revenues, recurrent and development expenditures for the 2023 fiscal year and announced that the total revenue and grants for 2023 are projected at D31.48 billion, which represents a growth of 18.42 percent over 2022, the figure of D26.59 billion.

“Total Revenue and Grants for 2023 is projected to reach D31.48 billion, which represents a growth of 18.42 percent over 2022, the figure of D26.59 billion, increment of which is mainly attributed to an estimated increase in tax revenue, budget support Grants, and Non-Tax Revenue. Project Grants are projected to reach D11.83 billion compared to D9.66 billion in 2022, whereas Non-Tax Revenue is projected at D2.97 billion compared to D2.20 billion in 2022,” FM Seedy Keita informed MPs.

“The 2023 budget estimate has been prepared based on the objectives of continued recovery and building on an inclusive and resilient economy. To this end, the draft Estimate is anchored on a renewed commitment to strengthen domestic resource mobilization to support the provision of quality essential services in agriculture, education, health, and Infrastructure development to promote a more inclusive and resilient growth,”Finance and Economics Affairs Minister told deputies while tabling the 2023 Draft Budget Estimates.

He told lawmakers: “This new direction of government development policy will support recovery in the light of the adverse impact of the Russia-Ukraine War and the lingering effects of the COVID-19 pandemic. Accordingly, the macroeconomic framework underpinning the draft Estimates is anchored on recovery in agriculture, sustained growth in construction services, and a broadly positive outlook in the tourism sector.”

According to him, the 2023 Budget is prepared with minimal new revenue measures to give respite to the private sector following the outbreak of the Coronavirus pandemic and the devastating impact of the Russia-Ukraine war that affected businesses across the country.

He said the total revenue and grant is projected to reach D31.48 billion, mainly attributed to an estimated increase in tax revenue, budget support Grants, and Non-Tax Revenue.

He added: “Total Tax Revenue is also projected to marginally increase by 1.5 percent to D13.92 billion, compared to D13.66 billion in 2022. The 2023 budget will factor Budget Support to the tune of D2.77 billion from our developing partners, compared to D1.07 billion in 2022. The bulk of the budget support is expected to come from the World Bank (US$20 million), the European Union (US$13 million), AFD (US$ 2 million), and the African Development Bank (US$ 7 million).”

The finance minister told MPs that total expenditure and net lending are projected to increase by 13.5 percent, rising from D31.18 billion in 2022 to D35.41 billion in 2023, adding that this increase is mainly driven by increases in other expenditures, which are projected to increase by D3.77 billion in 2023(or 13% growth).

Among other issues Finance and Economics Affairs Minister highlighted as part of the 2023 Fiscal Year Budget Estimates included the debt Interest, which according to him, is projected at D3.48 billion for the year ended 2022.

He said this overshoots the revised Budget by D442 million and mostly relates to the increase in domestic and external debt service due to the US dollar appreciation and the increasing cost of household debt.

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