The Minister of Finance, Jacob Jusu Saffa has said that the Government of Sierra Leone has projected a revenue of Le, 9.21 trillion for the Financial Year 2021 of which domestic revenue is expected to contribute Le 6.42 trillion, budget support Le 822 billion, and domestic financing Le1.69 trillion.
He made this disclosure at the Chamber of Parliament on Friday while delivering his budget speech which was themed: “Economic Recovery for Job Creation and Human Capital Development” in Freetown.
According to the Minister, project loans and grants are projected at Le1.85 trillion, adding that the resources disbursed were those gotten from development partners and distributed through commercial banks and in some cases the Bank of Sierra Leone for the financing of projects in various sectors.
“Sierra Leone’s domestic revenue is projected to increase to Le6.42 trillion, and represents 13.5% of GDP in 2021. Income Taxes will contribute Le 2.4 trillion; Goods and Services Tax (GST), Le 1.2 trillion; Customs and Excise Duties, Le 1.5 trillion, Royalty and Licenses on minerals, Le275 billion; Royalties and Licenses on fisheries, Le 116.9 billion; Parastatals dividends, Le 88.5 billion; revenues from other Government departments including TSA agencies and Royalty on timber exports will amount to Le735.8 billion. Road User Charges and Vehicle Licenses will contribute Le124.9 billion to domestic revenue in 2021,” Saffa said.
He cited that Government priorities for the medium term are articulated in the Medium-Term National Development Plan (2019-2023), noting that the priorities remain relevant for the recovery of the economy from the devastationcaused by the COVID-19 pandemic.
“The composition and allocation of Governmentexpenditures, both recurrent and capital reflect these priorities while continuing torespond to the health and economic effects of COVID-19 shock,” he said.
He furthered that, the total expenditure and net lending for 2021 would amount to Le10.26 trillion (21.5% of GDP) compared to the estimated Le 10.29 trillion (25.0 % of GDP) for 2020, adding that of this, total recurrent expenditure would amount to Le7.2 trillion (15.2 % of GDP) and capital expenditure and net lending to Le3.0 trillion (6.4% of GDP), Foreign-financed capital expenditures are projected at Le1.9 trillion (3.9 % of GDP), and domestic funded capital expenditures at Le 1.18 trillion (2.5 % of GDP).
By George M.O. Williams
17/11/2020. ISSUE NO: 7952