Gambiaj.com – (BANJUL, The Gambia) – The Gambian government ended the 2025 fiscal year with a budget surplus of D1.68 billion, though the positive balance was largely driven by external financial support rather than domestic revenue growth, Finance Minister Seedy K. Keita has told lawmakers.
Minister Keita provided the update during a briefing to members of the National Assembly of The Gambia on the implementation and monitoring of the national budget, outlining government revenue performance, expenditure trends, and the fiscal challenges facing the country.
According to the minister, total government revenue reached D33.03 billion in 2025, slightly exceeding the approved target of D32.10 billion. The figure represents a 28 percent increase compared to 2024.
However, Keita explained that much of the improvement was attributable to external support, particularly a $45 million budget support grant from the World Bank. Without the grant, the national budget would have recorded a deficit of approximately D198 million.
Despite the surplus, the minister said government spending pressures continued to mount. Total expenditure stood at D31.36 billion, representing 97 percent of the approved budget.
Personnel costs rose significantly, increasing by 35 percent to D9.58 billion. Subsidies and transfers grew by 36 percent, while interest payments on domestic debt climbed by 33 percent, reflecting the growing burden of government borrowing.
On the revenue side, tax collection performed strongly. Tax revenue reached D23.97 billion, exceeding the target by 13 percent. In contrast, non-tax revenue underperformed significantly, totaling D4.65 billion, well below expectations. Keita said this shortfall exposed weaknesses in the collection of licensing fees, service charges, and other government levies.
The minister also addressed capital spending, noting that expenditure on infrastructure and development projects amounted to D2.16 billion, representing just 57 percent of the approved capital budget.
He attributed the lower execution rate partly to the use of levies collected by the National Roads Authority for off-budget road projects.
Looking ahead, Keita cautioned that the government faces persistent fiscal challenges, particularly rising debt obligations and increasing wage bills in the public sector.
While externally funded projects continue to support infrastructure development and public service delivery, the minister warned that the country’s budget remains heavily reliant on foreign assistance, underscoring the need to strengthen domestic revenue generation while maintaining fiscal discipline.
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