By: Fatou Krubally
The Minister of Finance and Economic Affairs yesterday told the National Assembly that The Gambia recorded a budget surplus of D1.68 billion at the end of the 2025 fiscal year, citing improved revenue collection and external budget support as key contributors.
Presenting an oral ministerial statement on the implementation and monitoring of the 2025 National Budget, Minister Seedy Keita said the government’s financial performance showed steady improvement compared to the previous year.
According to him, total revenue excluding project grants reached D33 billion in 2025, compared to D25.85 billion in 2024, representing a 28 percent increase and exceeding the annual budget target of D32.1 billion.
He explained that the increase was largely driven by improved tax and non-tax revenue collections, supported by administrative reforms and better compliance mechanisms.
“Tax revenues amounted to D23.97 billion in 2025, surpassing the approved budget target of D21.13 billion,” the minister told lawmakers.
He noted that direct taxes rose by 24 percent while indirect taxes increased by 21 percent, reflecting improvements in areas such as VAT, excise duties and import-related taxes.
Domestic revenue, he added, increased from D23.27 billion in 2024 to D28.62 billion in 2025, although it slightly underperformed against the approved budget due to lower-than-expected non-tax revenue collections.
The minister attributed part of the revenue growth to ongoing reforms, including the digitalisation of tax administration systems, improved data matching, strengthened tax audits and better enforcement of withholding taxes on donor-funded projects.
On expenditure, the minister said total government spending and net lending amounted to D31.36 billion, representing 97 percent of the approved annual budget of D32.3 billion.
He explained that the main drivers of government spending were personnel emoluments, subsidies and transfers to public institutions, and domestic debt interest payments.
Personnel emoluments alone amounted to D9.58 billion, reflecting the government’s decision to increase civil servants’ salaries in 2025.
Despite the increase in spending, the minister said the government ended the year with a surplus largely due to higher-than-expected external support.
He disclosed that a US$45 million budget support grant from the World Bank contributed significantly to the improved fiscal position.
The grant, he says, is intended to support economic reforms, improve living standards and strengthen the government’s capacity to deliver essential public services.
