By Tabora Bojang
According to the 2025 budget estimates tabled by the Minister of Finance Seedy Keita on Friday, the government allocates 29 percent of the budget for debt repayments, far more than allocations for education, health and agriculture.
Explaining its proposed expenditure before lawmakers, Minister Seedy Keita said: “Debt service continues to attract the largest allocation of the budget and for 2025, D11 billion (29 percent of the budget) will be allocated to debt service. This is due to the commencement of debt servicing following end of Debt Servicing Suspension Initiative which was triggered by Covid-19 response.”
Minister Keita added that debt interest is also projected to increase by D5.11 billion due to expected 63 percent increase in interest payments on foreign debt and interest payments on the 30-year bond.
He however stated that deficit financing under this budget will be lowest in the last ten years, much less than 1 percent of the GDP.
Salaries, allowance increases
Minister Keita further informed NAMs that the increase in personal emoluments from D7.39 billion in 2024 to D8.93 billion projected for 2025 is due to an increase of 30 percent in the salaries of core civil service.
He disclosed that transport and house rent allowances will also be increased from D1500 to D3000 and from D1700 to D3,500 only for grades 1-8 under the integrated pay scale of the civil service.
Tariff compensations to Nawec, subsidiaries
According to the Finance Minister, subventions are expected to increase from D4.94 billion in 2024 to D6.39 billion. He said this increase is as a result of the energy subsidy to cater for tariff compensations to Nawec and subsidies to GRA, hospitals and schools.
