The government has been urged to streamline the country’s tax exemptions regime instead of continually seeking loans that could jeopardize the future of the nation.
Despite facing stiff opposition from the Minority, parliament passed a $300 million loan from the International Development Association (IDA) to finance the 2024 budget.
The approval followed a heated debate on the floor of the House on March 8.
In response to concerns raised by Minority Members of Parliament, Finance Minister Dr. Mohammed Amin Adam clarified the nature of the loan, stating, “Let me take this opportunity to clarify a few issues. First of all, this is not an IMF facility, it is a World Bank facility. It is a concessional facility for 25 years with a grace period of five years and an interest rate of about 1.25 percent. It has a grant element of 26%.”
“It is concessional, and this house is familiar with such concessional facilities. Secondly, it is budget support. This same house approved the financing for the 2024 budget, totaling 61 billion.
This loan is one of the facilities we are pursuing to finance the 2024 budget. As we already know, the 2024 budget allocated resources to different projects and programs for the year.”
Dr. Adam also assured the Minority that he would review and rationalize tax exemptions, promising to report back to Parliament within two weeks. He concluded by expressing hope that members would support the rationalization efforts upon his return.
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