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Gov’t Local Fund Expenditure in 2025 Stands at D8.130 billion- Minister Keita

 By: Binta Jaiteh

The Minister of Finance and Economic Affairs, Seedy Keita, told lawmakers that the actual total of Government Local Fund (GLF) expenditure in the first quarter of 2025 stands at D8.130 billion, asserting that this was curtailed below the quarterly budget of D8.352 billion by 3%.

The minister said, this is mainly because of an increase in expenditure on subsidies and transfers to sub-vented institutions, subsidies and transfers amounting to D2.042 billion are as a result of an increase in the wage bill of sub-vented institutions and an input subsidy of D580.95 million.

Keita revealed this during Parliament’s second extraordinary session on the monitoring and implementation of the 2025 annual budget. Affirming the actual total revenue (GMD6.674 billion) performed better than the quarter budget.

“Actual total revenue (GMD 6.674 billion) exceeded projections by 3%. This is backed by an increase in tax revenue (GMD 6.16 billion) compared to a quarter 1 budget (GMD 5.62 billion) by 10%,” he stated. However, there was a 40% underperformance in the non-tax revenue.

Actual total expenditure (GMD 8.13 billion) was 3% below Quarter Budget (GMD 8.35

billion). “This could be attributed to the lower-than-expected debt interest payments (GMD 1.57 billion) compared to a Quarter 1 budget (GMD 1.85 billion).”

Minister Keita noted that expenditure on the use of goods & services and GLF capital was controlled below their 1 Quarter budgets. Actual expenditure for use of goods and services (GMD1.032) was below its quarter 1 budget by 18%, and the GLF capital (GMD1.147 billion) was below its quarter budget (GMD1.26 billion) by 18%.

He elaborated that revenue collection exceeded expectations, indicating improved domestic revenue mobilization, and there was a strong performance in tax revenues, which suggests effective tax collection and improved compliance due to digitization.

The under-performance in non-tax revenue could be due to delays in fee collections, including licenses, fines lower dividends from state-owned enterprises, or shortfalls in non-tax revenues. Actual Domestic revenue performance (GMD 6.674 billion) compared to the annual represents a 23% domestic revenue collection rate. This performance is mainly the result of a

31% collection of taxes on profits and capital gains, a 27% collection rate of taxes on goods and services, and a 29% collection rate of taxes on international trade and transport,” he maintained.

The first quarter of the 2025 budget implementation shows a high domestic revenue collection with an over-performance of 19% compared to the same period last year. The actual Total

Revenue (GMD6.674 billion) performed better than the quarter 1 budget (GMD6.466 billion) by 3%,” Keita underscored. “This revenue turnover also coincided with high spending pressures emanating

from an increase in personnel emoluments, subsidies, and transfers to public institutions.

GLF expenditure has increased by 25% compared to last year.

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