By Kemo Kanyi
Lamin Camara, former Permanent Secretary at the Ministry of Finance and Economic Affairs (MoFEA) has raised concerns over the sustainability of government fuel subsidies, warning that current spending levels may not be viable in the long term.
Speaking to The Voice on Tuesday, Camara said the government has spent about D650 million on fuel subsidies since the onset of the fuel crisis, describing the expenditure as “not sustainable.”
He questioned the source of funding for the subsidy, noting that government revenue collected by the Gambia Revenue Authority (GRA) is already committed to debt servicing, salaries, emoluments, and other recurrent expenditures.
“In effect, if there is no budget line created, it means there must have been some cuts in the budget or borrowing from the domestic market, and borrowing from the market is not an option as the country is hitting a high debt risk threshold,” he said.
Camara urged authorities to strengthen both fiscal and monetary policy management in order to improve economic stability and citizens’ welfare.
He said monetary policy should be used prudently to strengthen the dalasi and contain inflation, while fiscal policy should focus on controlling public expenditure.
The former senior finance official added that sound economic management should be guided by “stringent discipline,” with optimal government spending and improved revenue collection supported by reliable economic tools.