Directorate of Economic Policy and Research

Mission Statement

The Directorate of Economic Policy and Research provides Government with analysis and recommends policies leading to the promotion of economic development and to the eventual reduction of poverty. The Directorate provides expert advice and assistance in the formulation of economic policy particularly in relation to macroeconomic conditions, forecasting, public finances, etc. As part of its work programme the Directorate is responsible for maintaining its short-term forecasting model and produce annual economic forecasts. The macroeconomic forecasts provide the basis for economically-sensitive fiscal projections which are submitted to the Directorate of Budget in preparation for the annual budgetary processes. The Directorate acts as the main interface between the Ministry for Finance and Economic Affairs and the country Development Partners (AfDB, WB, IMF, IsDB, ECOWAS, etc.).

Role and Responsibilities

In the field of policies and programs:

  • Collaborate in defining structural development policies and their respective impacts in public and private expense in infrastructures, namely public investment
  • Estimate budget revenue, domestic tax revenue and non-tax revenue, as well as write relevant texts for the Government Budget
  • Issue opinions on tax policy
  • Draft studies and issue opinions on tax structure and applicable fee levels
  • Issue opinions on matters related to expenditure, savings
  • Economic Modelling Department

    This Department is responsible for developing and applying techniques to simulate alternative scenarios of public spending on economic growth and the balance of payments over the medium-to-long term.

    Role and Responsibilities

    • Identify the impact of economic growth on key economic sectors of the economy
    • Develop analytical tools that can measure the many impacts of social and economic growth, including infrastructure and environmental impacts and suggest policy strategies to mitigate negative impacts
    • Develop long-term simulations of social and economic impacts resulting from changes in GDP growth and sectoral composition
    • In coordination with the Central Bank, the Gambia Bureau of Statistics, the Gambia Revenue Authority and the International Monetary Fund, develop a simplified Financial Programming model to assist the Ministry maintain macroeconomic policy consistency and make coherent growth projections, and
    • Develop the in-house capacity to develop or refine this model.
  • Economic Monitoring and Surveillance Department

    Role and Responsibilities

    • Periodically compile key economic indicators to provide timely information on the evolution of the economy during the calendar year, in between the production of annual National Accounts and other economic data by the Directorate, and
    • Draft annual reports on the operations of the department.
  • Medium-Term Fiscal Framework Department

    The Medium-Term Fiscal Framework Department develops the resource envelop for the annual budget and projections for 5-10 years into the future, based on estimates of domestic revenues, balance of payments trends and resources from Development Partners

    Role and Responsibilities

    • Coordinate with relevant bodies within the Ministry (Directorate of Budget and Accountant General in particular) on aggregate expenditure levels and sectoral allocations, especially allocations between recurrent and capital expenditures, and
    • Draft annual reports on the operations of the department.
  • Macroeconomic Impact Analysis Department

    The Department of Macro Economic Impact Analysis estimates the inflationary impacts and the breakdown between import requirements and demand on the domestic economy of major budget line items.

    Role and Responsibilities

    • Estimate the macroeconomic impact of trends in world prices of petroleum and other key country imports, and
    • Draft annual reports on the operations of the department.
  • Strategic Economic Analysis Department

    The Department of Strategic Economic Analysis is responsible for the development of growth and poverty reduction strategies.

    Role and Responsibilities

    • Manage the process for developing strategies towards economic growth and poverty reduction
    • Identify productive sectors that are likely to become the drivers of the non-oil economy, such as:
      • agriculture and tourism along the coast and in the mountains
      • various forms of manufacturing, and
      • a limited array of personal and business services.
    • Draft annual reports on the operations of the department and participate in the drafting of annual budgets.
  • Working Paper Series

    In this paper series, the Department of Economic and Policy Research at the Ministry of Finance, will presents policy research on the economy the Gambia, through collaborations with MDAs and other research partners. Each paper aims to provide evidence and insight on a macroeconomic or development issue and aims to raise and discuss policy questions relevant to same. The papers adopt an action oriented approach, written to be accessible to policy makers, development practitioners and academics alike. Feedback and comments are welcome at smenon@mofea.gov.gm.  Kindly see the Download tab below for the latest publications.
     

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    Corporate Income Taxation in The Gambia
    Corporate Income Taxation in The Gambia

                            Working Paper Series

                           Corporate Income Taxation in The Gambia

                      A Study of Revenue and Investment Elasticities
                                               Sneha Menon, Asta Jobe
                       in Partnership with the Gambia Revenue Authority
                                                              March 8, 2018
    Abstract

    In this paper, we conduct a brief literature review, benchmarking exercise and illustrative elasticity calculation to understand the impact of corporate tax rates on revenue and investment in the Gambia. We find that Gambia’s tax rates are slightly lower than the regional average and that in the last decade, tax revenues and investment indicators do not respond significantly, negatively to the fall in corporate tax rates. We suggest a deeper analysis of the tax base and maintenance of a longer time series analysis/higher frequency to structurally estimate the elasticities and to develop a more efficient tax regime.

     

     

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