By Mabinty M. Kamara
The Minister of Finance, Jacob Jussu Saffa, has presented the government’s statement of Economic and Financial policies for the financial year 2021 to Parliament for approval.
A total of Le9.21 trillion was allocated to sectors of education, health, agriculture, debt service payment, social security, fisheries, tourism, electricity supply, water supply, among others. Saffa said that domestic revenue will contribute Le6.42 trillion, budget support Le822 billion, while domestic financing will account for Le1.69 trillion.
Project loans and grants are projected at Le1.85 trillion. These are resources disbursed by development partners through commercial banks and in some cases the Bank of Sierra Leone, for the financing of projects in various sectors.
The statement of Economic and financial policies is inclusive of a bill entitled the “the appropriation Act 2021”, which seeks to become an Act to authorize expenditure from the consolidated fund for services of the country for the year 2020 and for other related matters.
The budget statement reading was witnessed by representatives of the MDAs, the media and civil society organizations on Friday, November 13th, in the well of the Sierra Leone parliament.
Presenting the document, the minister highlighted key government interventions towards the socio-economic development of the state, notably the government’s response to the COVID-19 pandemic, the social safety net programme and support to importers and small scale businesses, among others, to strengthen the economy amidst the shock of the pandemic.
The theme for this year’s statement of Economic and financial policies, also known as budget speech, according to the Minister, is “Economic Recovery for Job Creation and Human Capital Development”. He noted that it had the objective of continued response to the impact of COVID-19 on the economy and livelihoods, especially the hardest hit sectors and vulnerable groups; and to accelerate economic recovery in the context of the Medium-Term National Development Plan to boost resilience, create jobs and reduce poverty.
“The budgetary allocations for 2021 is aligned with the priorities of the government as articulated in the National Development Plan (2019-2023) and the New Direction Manifesto. The focus of the 2021 Budget is to stimulate economic recovery while continuing to contain the COVID-19 pandemic. To this end, the composition of expenditures will reflect the strategies laid out to support Economic recovery, create jobs and promote human capital development in 2021,” Saffa stated.
Of the Le 9.21 trillion, Le1.54 trillion was allocated to the education sector, representing 22 percent of the total budget. This, according to Saffa, will support the continued delivery of the Free Quality School Education programme; salaries of teachers and other support to basic and secondary education; salaries of staff and other support to higher and technical education.
Some Le794.2 billion, representing 11 percent of the total budget, was allocated to the health sector. The minister said this will cover the salaries of healthcare professionals in the health-related agencies; transfers to NaCOVERC, improving access to quality and basic health services, reproductive and child health care services, hospitals and ambulance services.
And Le422.6 billion, representing 6 percent of the budget, is allocated to agriculture to support the production of rice and other food crops. The energy docket gets Le45.5 billion for the electrification of seven district towns, rehabilitation of the Dodo Hydro dam and EGTC thermal plants and installation of solar street lights. The amount, said Saffa, includes counterpart contribution to donor funded projects in the sector. The World Bank, AfDB, and Indian Exim Bank will disburse Le324.7 billion towards the implementation of various projects in the Energy sector.
The Ministry of Water Resources was allocated Le15.7 billion, including Le5.0 billion as grant to SALWACO and Le3.2 billion for the National Water Resources Management Agency.
According to Saffa, by next year there would be an increase in the country’s economic growth with the resumption of the mining sector and other related activities.
Debate on the bill entitled Finance Act 2021, an act to provide imposition and alteration of taxes to give defects to the financial proposals of the government and to provide for other related matters for the financial year 2021, was adjourned by the House of parliament for a later date.
Copyright © 2020 Politico Online
