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Momodou
Denmark
11806 Posts |
 Posted - 20 Dec 2005 : 09:48:16
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Foroyaa Editorial
THE DEBT BURDEN AND RISES IN TAXES AND HARDSHIP
Contrary to the views expressed by many Secretaries of State for Finance that the Country could comfortably shoulder its debt burden, SOS Bala Gaye has confirmed beyond any shadow of doubt that the debt burden can no longer be shouldered. Foroyaa has repeatedly told the nation that the 22 billion dalasis National debt which required 1.4 billion dalasis from the National budget in 2005 and 1.5 billion in 2006 cannot be the basis for the reduction of poverty; on the contrary it could only lead to more hardship. It is very clear that the government has been living above its means by domestic borrowing to meet its expenditure. SoS Bala Gaye has confirmed that government revenue fell below target this year by 220 million dalasis. This is due to shortfall in taxes in international trade and non tax revenue. This shows the danger of government depending entirely on taxes for its public expenditure. This drop in revenue gave rise to a budget deficit of 855 million.
How are these deficits financed? It is by borrowing. Needless to say, these debts have to be paid. The SOS has said that the government is in arrears in its payment of domestic debts. Consequently it is now conditioned by its external creditors to manage the economy according to its means.
The government has to pay its debt, reduce its borrowing and increase taxation. This means more hardship for the people. Salaries will not be increased, more cost recovery in public services, more privatization of public enterprises and more poverty. The income of farmers is to be reduced because of the lowering of the prices of groundnut. Civil Servants also assured of no salary incentive. Foroyaa will wait and see how the National Assembly members will analyse the budget speech and report on their views for public consumptions.
Source: Foroyaa Issue No. 97/05, 19-21 December,2005
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A clear conscience fears no accusation - proverb from Sierra Leone |
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