The global economic disruption largely caused by the Russia-Ukraine war and the lingering effects of Covid-19 is sending shock waves across national economies including The Gambia’s. The results of these uncertainties have been skyrocketing prices of essential commodities and consequently high cost of living.
In recognition of this precarious economic situation, cabinet had prioritized the issue of high cost living and the deteriorating economic situation of the country in its latest meeting.
A press release issued by the Office of the President following the conclusion of the cabinet meeting, stated that “cabinet has commissioned an eight-member Economic Taskforce to look into the recent rise in fuel and commodity prices and the implication of the Russia-Ukraine war on all sectors of the economy”.
The Taskforce, it stated, is assigned to develop a diagnostic analysis of the current situation of the economy and recommend measures to mitigate the impact of the conflict on the living conditions of people in The Gambia.
The Taskforce consists of members from the Ministry of Finance and Economic Affairs, Accountant General Department, Gambia Revenue Authority, Gambia Public Procurement Authority, Central Bank of The Gambia, Ministry of Trade Regional Integration and Employment, Gambia Investment and Export Promotion Agency and Ministry of Agriculture. The Taskforce is expected to present a report in two weeks.
Further in the release, it is revealed that some cost control measures have been introduced for the civil service.
A circular from the Secretary-General and Head of the Civil Service, pointed out that the effects of the current economic challenges “have manifested in a reduction in economic activity, revenue generation and the surge in the price of fuel and other commodities”.
ched a circular to inform all Ministries, Departments and Agencies, of immediate measures to mitigate the impact of current global economic uncertainties.
The effects have manifested in a reduction in economic activity, revenue generation and the surge in the price of fuel and other commodities.
“The Government has taken fiscal and austerity measures to ensure its continued functioning by reducing spending on overseas travel, fuel and lubricants, and telecommunications allowances. The Government will revise and administer spending with immediate effect and until further notice,” the Secretary General declared in this circular.
He announced that Government suspended overseas travels except for statutory meetings of the UN, ECOWAS, AU, World Bank, IMF, AfDB, IsDB or where the organisers will fully pay the cost of participation in such overseas events.
The measures, he clarified, also include paying half per diem for the missions where the Government will provide accommodation.
“In telecommunications, Government provision of postpaid mobile telephones for public officials will be limited to senior officials and relevant security functionaries with limits. The circular has directed Vote Controllers to ensure strict compliance in this regard”.
Therefore Ministries, Departments and Agencies must keep expenditure on fuel and lubricants to the barest minimum, as the monthly fuel allocation to eligible officials has been reduced by 20%.
These measures are expected to be in place pending improvements in the economic landscape when the Government reviews them.