On Monday, Finance and Economic Affairs Minister Seedy Keita provided the National Assembly with an update regarding the implementation and monitoring of the 2025 annual budget. He reported an improvement in revenue collection while cautioning about increasing expenditure pressures during the first quarter of the year.
During the Sixth Ordinary Session of the legislature, Mr. Keita announced that total revenue for the first quarter reached 6.67 billion dalasis, surpassing the anticipated 6.46 billion dalasis by 3 percent, primarily due to enhanced domestic resource mobilisation.
“Mr. Keita informed lawmakers that this positive performance is primarily due to enhanced domestic tax collection.” He observed that domestic tax revenue reached 6.16 billion dalasis, exceeding the quarterly target of 5.6 billion dalasis by 10 percent. Nonetheless, non-tax revenues markedly underperformed, coming in 40 percent below projections.
The Minister reported total spending of 8.13 billion dalasis on the expenditure side, which was 3 percent lower than the quarterly budget estimate of 8.35 billion dalasis. He explained that the shortfall was mainly due to lower-than-anticipated debt service payments and limited spending on goods and services.
“Actual interest payments on debt amounted to 1.57 billion dalasis, in contrast to the budgeted 1.85 billion dalasis,” Mr. Keita stated, noting that capital expenditures under the Government Local Fund (GLF) also fell short of projections. He noted that spending on goods and services amounted to 1 billion dalasis, which is 18 percent below the target, while GLF capital expenditure totalled 1.14 billion dalasis, also falling short by 18 percent.
Nevertheless, wage pressures continued to be a concern. Personnel costs reached 2.34 billion dalasis, surpassing the budgeted figure of 2.12 billion dalasis by 7 percent. Mr. Keita attributed this variance to a public sector wage bill that was higher than expected, following an average civil service salary increase of 30 percent.
The Minister noted that subsidies and transfers rose to 2.04 billion dalasis, exceeding the quarterly budget of 1.86 billion dalasis by 9 percent. This increase was partly fuelled by a 580 million dalasi input subsidy for fertiliser and higher subventions to public institutions.
Even with increased recurrent spending, The Gambia’s gross fiscal deficit decreased to 1.45 billion dalasis, which is 23 percent lower than the projected shortfall of 1.88 billion dalasis for the quarter. Mr. Keita observed that there was no expectation for external budget support in the first quarter; however, the deficit is projected to stabilise once this support becomes available later in the year.
The Minister highlighted that the increases in tax revenue were indicative of continuous enhancements in tax administration and compliance, supported by recent digitisation initiatives. “We observed notably robust results in taxes related to profits, capital gains, goods and services, as well as international trade,” he stated.
In the first quarter, taxes on profits and capital gains amounted to 1.5 billion dalasis, reflecting a 39 percent rise compared to the same period last year. Meanwhile, taxes on international trade and transport reached 1.7 billion dalasis, marking a 52 percent increase year-over-year. Revenue from goods and services increased to 2.26 billion dalasis, reflecting a 15 percent enhancement.
Mr. Keita recognised that non-tax revenue collections, including fees, fines, and dividends from state-owned enterprises, fell short, achieving merely 6 percent of their annual target and lagging behind last year’s figures by 44 percent. He linked this to postponed collections and diminished returns from public enterprises.
The Minister emphasised that maintaining fiscal discipline will be a key focus moving forward, ensuring careful budget execution while upholding expenditures that foster economic growth.
“The first quarter of 2025 has shown impressive domestic resource performance, exceeding last year’s figures by 19 percent,” Mr. Keita stated. “However, this enhancement in revenue has come alongside heightened spending pressures, especially regarding wages, subsidies, and transfers.”
He wrapped up by reiterating the government’s dedication to meticulously overseeing public finances in light of increasing demands. “Fiscal measures will persist in being implemented to support responsible budget execution while allowing for growth-promoting expenditures,” he stated.
