By Mohamed Jaward Nyallay
The European Union has disbursed €10 million to the Government of Sierra Leone. The money is part of the EU’s 2020 budgetary support to the country.
The National Authorizing Office (NAO), which is responsible to coordinate EU activities in the country, announced the latest tranche of payment on Monday in a statement.
It said the money was disbursed earlier than usual, after the government met a number of pre-agreed criteria. The money is part of the Third State Building Contract for Sierra Leone under which the country stands to gain €80 million in several tranches.
The value of Sierra Leone’s 2020 budget is Le 8.2 trillion. The country had projected that it will contribute a chunk of the money through domestic revenue, something which has been drastically affected by the COVID-19 pandemic.
The Ministry of Finance estimates that the country will lose $100 million in revenues by the end of the year.
NAO said the money was disbursed early based on a number of achievements the government had made.
“A review of progress made in public finance management, which included a review of the Government’s progress in fighting corruption, as well as other improvements in Governance. A review of progress made towards increasing the public understanding of and access to budgetary information,” it states.
NAO said the government also made a compelling case on the impact of COVID-19 on the economy. Last month, the government of Sierra Leone launched the Quick Action Economic Response Program (QAERP), an economic response program to deal with the impact of the pandemic on the country.
The QAERP program will cost the government some $136 million, after tax.
NAO said the €10 million “will provide much needed flexibility for Government initiatives to maintain macro-economic stability and support livelihoods, as well as help mitigate funding gaps created by the need to divert significant public development resources towards the Coronavirus response.”
The government’s budget and financial program has been disrupted by the COVID-19 pandemic. The situation also threatens to derail the implementation of the country’s Medium Term National Development Plan.
The Minister of Planning and Development, Dr Francis Kaikai, told the EU Ambassador to Sierra Leone, Tom Vens, that the money will ensure the government meets its commitment to its citizens.
“The Government of Sierra Leone’s economic policy response to the Coronavirus pandemic necessitates meeting growing health emergency needs, supporting economic activity and preparing the ground for a seamless transition from recovery to development. The EU’s early disbursement of the €10 million fixed tranche of budget support for the 2020 financial year, under the Third State Building Contract for Sierra Leone will help the Government of Sierra Leone deliver on its commitments in these areas,” he said in a short ceremony at Towerhill.
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