By: Fatou Krubally
The Gambia’s budget deficit narrowed significantly in the first quarter of 2026, falling by 67 per cent compared to the same period last year, as government revenue reached D7.68 billion, according to a budget performance statement presented before the National Assembly on Monday.
Delivering an oral ministerial statement on the implementation and monitoring of the 2026 National Budget, Finance and Economic Affairs Minister Seedy Keita told lawmakers that the country’s fiscal position improved during the first three months of the year despite the absence of budget support grants.
The minister reported that total revenue stood at D7.68 billion by the end of March 2026, compared to D7.54 billion recorded during the same period in 2025. The figure represents a year-on-year increase of 1.8 percent and accounts for nearly a quarter of the annual domestic revenue target.
According to the report, the improvement was largely driven by stronger tax collection. Tax revenue increased from D6.40 billion in the first quarter of 2025 to D7.19 billion in 2026, representing a growth of more than 12 percent.
Direct taxes recorded one of the strongest performances, rising by 20 percent to D2.65 billion. The increase was attributed mainly to higher corporate and personal income tax collections. Indirect taxes also grew, reaching D4.54 billion, supported by gains in Value Added Tax, import duties and import VAT collections.
While revenue increased, government expenditure and net lending amounted to D7.87 billion during the period, representing 22 percent of the approved annual budget of D36.19 billion. Spending was largely driven by personnel emoluments, subsidies and transfers, and debt interest payments.
Personnel emoluments accounted for D2.45 billion, while subsidies and transfers stood at D2.14 billion. Debt interest payments reached D1.36 billion during the quarter.
The Ministry of Basic and Secondary Education emerged as the largest spender among government institutions, with expenditure driven by salary payments, school feeding programmes, school improvement grants and textbook printing. The Ministry of Agriculture recorded the highest budget execution rate, supported by agricultural input subsidies and the procurement of 90 tractors.
Infrastructure development also featured prominently in government spending, with the Ministry of Transport, Works and Infrastructure disbursing more than D652 million for ongoing road and construction projects.
Despite the expenditure levels, the budget deficit stood at D195.84 million at the end of the first quarter, compared to D587.23 million during the same period in 2025. The deficit was also substantially lower than the budgeted target of D615.44 million.
The report noted that overall expenditure and net lending declined by three per cent compared to the first quarter of last year, contributing to the improved fiscal outcome.
In concluding his statement, the Finance Minister said government would continue implementing measures aimed at maintaining macroeconomic stability, improving domestic revenue mobilisation, strengthening public financial management and ensuring prudent debt management while supporting investment in key productive sectors of the economy.
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