Government has been urged to streamline the tax exemptions regime of the country instead of seeking loans upon loans that jeopardize the future of the country.
Despite stiff opposition from the Minority, parliament passed a $300 million loan from the IDA to finance the 2024 budget.
The approval was granted after heated debate on the floor of the House on March 8.
When the Speaker gave him the opportunity, the Finance Minister, Dr Mohammed Amin Adam allayed the fears of the Minority Members of Parliament, “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.”
“I want to assure them [the Minority] that I will review these exemptions. I will rationalize them, and I’ll report back to Parliament in two weeks. I hope that when I return, honorable members will support me in whatever rationalization we undertake,” he concluded.