A compressed revenue analysis has observed that on a month by month basis the general public services is where government is spending more money and it is growing. This expenditure is under the Office of the President including all ministries, departments and agencies (MDAs) under it. “That is one area government is spending huge resources. Government spend more than what they generate internally, we are aware that government has other sources of funding the budget through grants, ways and means, loans amongst others” said Abu Bakarr Kamara, national Coordinator Budget Advocacy Network (BAN).
The Government’s sectoral expenditure encompasses Education Services, Health Services, Social Security and Welfare, Defence, Public Order and Safety, Recreation, Culture and Safety, Housing Communities Amenities, Environment protection, Economic Affairs and General Public Services. The data analysed by BAN showed that government is spending more on public services, seconded by economic affairs and education than every other sector. However, the total sector expenditure far outweighs total domestic revenue for all the months under review.
For instance, the total sector expenditure from January to April 2020 is Le 5.56 trillion while the total domestic revenue for the same months is Le 1.72 trillion. This means that sector expenditure is more than three times the domestic revenue. Citing an example, Kamara explained that the Health and Education Sectors spending might rise as a direct consequence of COVID-19 given the need to procure medical supplies and drugs to respond to the health emergency at hand. The free quality education (FQE) on the other hand is winded with a culture of social distancing and precautionary measures.
“These in addition to the potential increase in the number of new intakes for the next academic year and the need to expand on school infrastructures have cost implications, thus increasing the expenditure of government on the social service sectors, while revenue decreases due to the COVID-19” he said.
By Zainab Iyamide Joaque