The Finance and Economic Affairs Minister, Seedy Keita, has projected a 6% increase in the country’s debt interest from D2.9 billion in 2023 to D5.9 billion in 2024. Total expenditure and net-lending are also expected to rise by 6%, rising from D37.15 billion in 2023 to D39.38 billion in 2024. The projected increase in personnel emolument expenditures from D6.10 billion in 2023 to D7.43 billion in 2024 is also anticipated.
The largest allocation of the expenditure budget is to education, with both basic and higher education constituting more than 15% of the budget. This is necessary to invest in human capital and capitalize on the demographic dividend of the youthful population. The infrastructure deficit of the country attracts the second largest share of the budget, followed closely by health and agriculture.
Subsidies and transfers, including subventions, are projected to increase by D599 million to D4.96 billion in 2024, compared to D4.34 billion approved for 2023. This increase is partly due to increases in subventions for the GRA, hospitals, schools, GBOS, and new subventions such as the MCC Compact Coordination office, the Victims Commission, and SOE Commission. The fertilizer input subsidies have been increased by D100 million.
Goods and services from domestically financed resources increased by 34% from D4.08 billion in 2023 to D5.48 billion in 2024. This increase is due to increased funding for land compensation for roads and NAWEC solar power project, post-OIC activities, travel expenses of the National Assembly, and consultancy services related to public works. Overall capital expenditure is expected to decrease by 12% to D11.76 billion in 2024, mainly due to the projected decrease in project grant disbursements. However, government funding of infrastructure and related investments is projected to increase by 30%, from D2.50 billion in 2023 to D3.26 billion in 2024.
