In its latest report on The Gambia, the
IMF has advised the government for an “immediate adjustment in fuel prices” in
order to remedy the steady decline of the country’s revenue performance coupled
with unanticipated expenditure overruns, higher-than-budgeted spending, which
could threaten the country’s macroeconomic stability.
The Gambia government revenue performance has signaled a downward
trend over the years while expenditure has continued to increase giving rise to
budget deficit that continues to swell year on year.
With the fuel price increment, the IMF says, the government is
expected to collect the full value of excise tax on fuel, although it noted
that this adjustment might only provide a modest of the much needed revenue
boost.
