Africa-Press – Gambia. The Gambia Government has reported stronger-than-expected revenue performance in the first half of 2025, with collections surpassing mid-year targets. However, expenditure pressures have widened the fiscal deficit to over GMD724 million by the end of June.
According to the mid-year budget performance report presented to the National Assembly by the Minister of Finance and Economic Affairs, Mr. Seedy Keita, total revenue excluding project grants stood at GMD13.78 billion—a 29% increase from the same period in 2024. This figure represents 43% of the approved annual revenue target of GMD32.10 billion and exceeds the mid-year projection by 9%.
The Ministry of Finance attributed the strong outturn to improved tax administration and robust collections across key categories, including taxes on profits and capital gains, goods and services, and international trade. Revenue from profits and capital gains rose 26% year-on-year to GMD3.73 billion, while taxes on goods and services generated GMD4.58 billion, representing 55% of the annual target. Taxes on international trade and transport also recorded significant growth, climbing 32% to GMD2.91 billion.
Despite the revenue boost, total government expenditure reached GMD14.51 billion during the first half of the year—about 45% of the annual budget of GMD32.30 billion. The main spending drivers were personnel emoluments, subsidies and transfers, and domestic interest payments. Personnel costs alone accounted for GMD4.74 billion, reflecting a 34% year-on-year increase following salary adjustments for civil servants.
The execution rate of subsidies and transfers stood at 53%, amounting to GMD3.46 billion, while domestic interest payments reached nearly half of the annual allocation. Capital expenditure, however, slowed to GMD1.37 billion, representing only 36% of the yearly target and marking a 9% decline compared to the same period last year.
With spending outpacing revenues, the government recorded a budget deficit of GMD724.84 million for the first half of 2025, well above the projected annual deficit of GMD198.33 million. Officials expressed optimism that the shortfall would narrow in the second half of the year, citing efforts to restrain expenditure growth and the anticipated disbursement of program grants.
In conclusion, the mid-year budget review highlighted both progress and challenges in fiscal management. While revenue mobilization continues to show strong momentum, rising personnel costs, debt service obligations, and subsidies are exerting pressure on public finances. The government has pledged to implement further fiscal measures aimed at ensuring prudent budget execution while safeguarding critical investments to support economic growth and development.
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