He made the statement, while delivering the   period 1st January to 31st December 2009, budget at the National Assembly Building tonight.

He said this provided the much needed fiscal space for government to improve service delivery to people, to channel and target more  resource towards  the social sectors for poverty alleviation, and to help in achieving the Millennium Development Goals, and the Vision 2020 objectives.

According to him for six consecutive years, the economy has registered a sustained growth rate of 5-6 per cent, and inflation has also been in single digit for the last four year.

He said the inflationary impact of rising world market prices for food and fuel have been mostly contained up to July, 2008 through tight monetary policy, and appreciation of the Dalasis.

He added that the situation has started to change, and new challenges are emerging, and fiscal policy, over the last five years, has bee aligned with macroeconomic  stability, and debt sustainability, and has contributed to economic growth.

He pointed out that the basic balance, in the past years, has been in substantial surplus, and the overall fiscal deficit has decreased significantly from 9.2 per cent of GDP in 2005 to a  surplus of 0.5 per cent in  2007.

“In fact, The government has been repaying domestic debt on a net basis in 2007 and 2008. The country’s international reserve position has been comfortably stable, averaging 4-5 months of imports cover.”

The fundamental issue now before all of us is how to maintain the growth momentum and macroeconomic achievements for which all Gambians have sweated profusely over the last five years, and avoid policy reversals in term of the substantial significant reforms so far undertaken in the face of rising food price, and the world financial crisis, and the accompanying challenges.

Gaye said Gambia government is cautiously optimistic that growth will be maintained and macroeconomic stability sustained in the medium-to-long term.

He noted that the Gambia is a small, open, and vulnerable economy, which relies heavily on trade, and overseas financial aid flows, but wherever negative impacts are foreseen, anticipated or felt, swift and strong remedial measure will be taken to redress this situation.