November 22, 2021
By Alfred Koroma
Government wage bill for 2022 will rise to Le3.90 trillion (7.7 percent of GDP) compared to Le3.75 trillion in 2021, according to the 2022 budget statement read by the minister in the Well of Parliament.
“This increase in the nominal wage bill reflects Government’s commitment to award a salary increase of 25 percent to all the security forces over a three-year period that started in 2021,” says the Minister.
He said government will add 25 percent to the salaries of employees in tertiary educational institutions, including universities, polytechnics and government technical institutes.
“This increase in the wage bill will also cover the recruitment of 1,200 teachers; 1,000 health workers. 1,000 police officers; 200 correctional officers; and 85 firefighters as well as 500 academic and administrative staff for tertiary educational institutions especially the newly established universities,” he said.
The Minister of Finance, Denis K.Vandy, on Friday disclosed content of the country’s budget in the Well of Parliament and outlines government spending plans for the Financial Year 2022. Building Resilience for Inclusive Green Recovery, he said, is the theme for this year’s budget.
The budget tells us how much money government will take in domestic taxes; how much it will get from grants, and how they will spend it in running the country. Government spending for next year’s budget will hit record high Le9.94 trillion from the Le9.21 trillion in 2021.
Of the Le9.94 trillion, domestic revenues will contribute Le7.64 trillion (15.1 percent of GDP) and project grants will contribute Le2.3 trillion – that will include Le783 billion support from World Bank.
The budget indicates that expenditure priorities of Government remain Human Capital Development, economic diversification which includes agriculture and food security; infrastructure development; combating climate change and promoting good governance as articulated in the Medium-Term National Development Plan of 2019-2023.
But there is 144.6 billion cut in the budgetary allocation to the agriculture sector which carried 6 percent of the 2021 budget. The 2022 budget allocation to the Agriculture and Food Security sector totals Le278.0 billion less than the Le.422.6 billion allocated to the sector in the 2021 financial year. The Le278.0 allocation includes salaries for staff, procurement and distribution of agricultural tools and equipment, rehabilitation of inland valley swamps, agricultural extension services, procurement of animal vaccines and other expenditures.
According to the Minister, the 2022 budget is fully financed with no financing gap and that strict administrative measures and implementation of the revenue policy will improve domestic revenue collection in 2022.
The total expenditure and net lending for the next financial year, including arrears pay down will rise toLe11.81 trillion (23.3 percent of GDP) compared to Le10.97 trillion for 2021.
“Part of it is the recurrent expenditures which will hit Le8.17 trillion (16.1 percent of GDP) and the capital expenditures will amount to Le3.64 trillion (7.2 percent of GDP), of which, domestic financed capital expenditures will summed up to Le1.19 trillion. Foreign-financed capital expenditures are projected at Le2.45 trillion. An amount of Le100 billion is allocated for the payment of pre-April 2018 arrears.”
The minister said Debt Service Payments total interest payments are projected at Le1.44 trillion (2.8 percent of GDP) for 2022. Of this, interest payments on domestic debt will amount to Le1.26 trillion and interest on foreign debt, Le178.7 billion.
He said of the Le9.94 trillion budget, Government has allocated Le1.7 trillion to the education sector, maintaining the 22 percent apportioned to the sector in the previous budget.
He said the amount includes salaries of teachers and employees of tertiary education institutions and other expenditures.
He said the health sector will receive Le896.7 billion, accounting for another 11 percent of the total budget expenditure and that the allocation includes salaries for health workers; recurrent expenditures for primary and secondary health care services, Le174.0 billion as transfers to NACOVERC, Le75.0 billion for procurement of Free Health Care Drugs, other essential drugs and medical supplies; Le41.2 billion allocated for the monthly cleaning exercise.
“The allocation also includes Le30.9 billion from the domestic capital budget, of which, Le4.9 billion is meant for the construction of a Diagnostic Medical Centre and Le3.5 billion for the rehabilitation and expansion of PHUs.”
He said to the security sector, the Ministry of Defence is set to receive Le341.3 billion and the Police Le396.3 billion.
“The correctional services have been assigned Le102.6 billion. While Le14.8 billion will go to the National Fire Force. Office of National Security will earn Le26.8 billion and Le22.4 billion is set aside for the Central Intelligence and Security Unit and Le14.4 billion is going to the Immigration Department.”
Ministry of Foreign Affairs and International Cooperation is allocated Le400.4 billion followed by the National Electoral Commission which receives Le336.8 billion; Le53.1 billion is specified to the Anti-Corruption Commission; while Parliamentary Service Commission gets Le69.8 billion. The National Monitoring and Evaluation Department is allocated Le5.9 billion.
An amount of Le199.7 billion goes to the Ministry of Finance and Le39.9 billion is allocated to the Ministry of Planning and Economic Development. NRA will receive Le207.7 billion.
