By zainab.joaque@awokonewspaper.sl
Freetown, SIERRA LEONE – The latest report from the World Bank indicates that Sierra Leone, along with several other countries in the Africa region, is making strides in improving its fiscal balance, largely due to increased government revenues.
According to the Africa Pulse Report, 31 out of 46 countries in the region are expected to see improvements in their fiscal balances this year. Of these, 16 countries are projected to narrow their deficits or shift into a surplus, with Sierra Leone being among them.
In these countries, government revenues have increased in about 75 percent of cases, while government spending has decreased in approximately 72 percent of cases. Notably, only 14 countries in this group have seen improvements in both revenue and spending, contributing to a substantial reduction in fiscal deficits.
Sierra Leone, along with countries like Guinea-Bissau, Senegal, and Uganda, has experienced a significant narrowing of its fiscal deficit, with rising revenues playing a key role.
However, the report also highlights that some countries will experience wider deficits or narrower surpluses in the current year. Overall, the reduction of fiscal imbalances across the region remains slow, with 27 countries still facing large deficits exceeding 3 percent of GDP.
The report underscores the heterogeneous nature of fiscal performance across African countries, with some nations expected to widen their deficits while others transition from surplus to deficit. Oil-rich countries like Angola and Gabon are also grappling with increased fiscal deficits, while others, such as Chad and Equatorial Guinea, are seeing changes in their fiscal balances.
Countries with the most significant improvements in their fiscal balances, including Sierra Leone, are expected to narrow their deficits by 2.5 percentage points of GDP or more in 2024. This positive trend reflects efforts to enhance revenue generation and manage expenditure more effectively, contributing to greater fiscal stability in the region. ZIJ/15/4/2024