Budget Advocacy Network Sierra Leone has in a position statement on the 2020 budget and Finance Act questioned the New Direction Government’s commitment to reduce external debts.
The reports noted that external debt is on the rise and has increased by 7.2 % in dollar terms and 22.9% in Leones.
This increase, they say, occurred between June 2018 and June 2019 respectively.
BAN also projects that the external debt is also expected to rise by 19% in dollar terms and 35.6 % in Leones by December 2019.
‘’While we acknowledge the fact that government debt is a part of the fiscal management, however, we are concerned about the sustainability or rising debt,’’ the statement reads.
The report also cited the one-year economic management report of Government between April 2018 and April 2019 which, according to BAN, cancelled loans totaling USD 300 million due to risks they posed to debt sustainability and noted their dissatisfaction that government announced an external concession loan of USD 367.8 million.
This, the BAN position paper states, sends a worrying signal of the commitment of government to reduce external debt.
BAN encourages Government to introduce an annual debt ceiling beyond which government cannot borrow as stated in the New Direction’s manifesto.
They have also emphasized that loans taken on behalf of the people of Sierra Leone should be done in a transparent and accountable manner.
The Budget Advocacy Network is a network of civil society organizations committed to work on budgets and budget policies with a view to enhance policy making and implementation.
They are renowned for closely working with government and the Ministry of Finance on budget related issues.
They have increasingly increased awareness and citizen’s participation in the budget process.