Seedy Keita, Minister of Finance and Economic Affairs, recently presented the 2024 budget estimates to the National Assembly. He revealed that the government’s total expenditure and net lending are expected to rise by 6%, from D37.15 billion in 2023 to D39.38 billion in 2024. Here are three key points from the minister’s speech to National Assembly members.
1 – The Gambia remains heavily chained to debt cycle and grants
The Minister stated in tabling the estimates for the 2024 budget that the increase is primarily driven by increases in debt interest, which is projected to rise from D2.9 billion in 2023 to D5.9 billion in 2024. (i.e., by 76 percent ).
Total revenue and grants are expected to reach D34.93 billion in 2024, representing a 5% increase over the D33.22 billion budget for 2023.
Budget Support from development partners will amount to D3.18 billion in 2024, up from D2.77 billion in 2023. The World Bank (USD25 million), the European Union (EUR14 million), the African Development Bank (USD7 million), and the Agence Française de Development AFD are expected to provide the majority of the budget support (EUR 5million).
2 – More Fiscal pressure with focus on rental income tax
Tax revenue is expected to rise by 24 percent as the economy improves and tax administration improves through digitization and compliance.”
Furthermore, he claims that a tax expenditure policy that will be implemented will help to increase revenue by reducing exemptions, increasing third-party data collection, and improving tax compliance.
There are ongoing efforts to increase corporate income tax (CIT) collection from major contractors, particularly those who benefit from major government contracts in the construction sector and in Private Public Partnership contracts.
“In addition, to strengthen tax compliance under this income tax category, the current scope for rental income tax collection will be expanded by developing a comprehensive register of owners of residential and commercial properties.”
3 – A high jump expected on non-tax revenue
Non-Tax Revenue is expected to increase by 86 percent due to partial anticipated receipts of $10 million from arbitration award and the payment of the first tranche of $15 million from the Trans-Gambia Asset Recycling Program.
An additional D500 million has been factored to cater for more revenues from non- tax revenue to reflect the enhanced domestic resource mobilization drive.
Personnel Emolument expenditures are also projected to increase from D6.10 billion (revised to D6.7 billion) in 2023 to D7.43 billion in 2024. However, Personnel Emoluments have been revised in 2023 to take into account adequate adjustments relating to unplanned recruitment.
