Finance Minister presents 2025 budget estimates of over D50 billion to Parliament 

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Finance Minister Seedy Kieta

By Fatou Dahaba

On Friday, Seedy Keita, the Minister of Finance and Economic Affairs, presented the government budget estimates 2025 to the National Assembly in Banjul. The estimated budget for the Gambia is D52,980,894,173, which includes recurrent expenditures for the fiscal year 2025.

The year’s estimates indicate an increase of over D10 billion from last year’s approved budget of D42 billion.

Total Expenditures and Non-Lending are projected to increase by 22%, rising from D26.52 billion in 2024 to D32.30 billion in 2025. It is worth noting that this figure excludes foreign and domestic amortization, which, when added, yields the appropriation amount of D37.84 billion.

The increase in total expenditure is driven by other expenditures expected to increase from D21.13 billion to  D261.2 billion. This results from the increase in projected Personal emoluments, use of goods and services, subsidies and transfers, and capital, which are expected to increase by 21%: 30%, 29%, and 11% responsibility.

The projected increase in Personnel Emolument expenditures from the approved figure of D7.39 billion for 2024 to  D8.93 billion in 2025 is largely driven by the projected D1.54 billion impact from the proposed increase in salaries, transport, and residential allowances.

The estimates include the current budget, which is expected to rise to D31,176,855 billion from D27,262,555, which was approved last year. The salaries and wages are proposed to increase to D8,888,079 billion from D7,359,495 billion in 2024.

Non-tax revenue is expected to increase by 45% in 2025 compared to 2024, mainly due to the anticipated receipt of D35 billion (US$50 million) as payment for the second tranche of the Senegambia Bridge Aset Recycling Program.

The 2025 Estimates include expected Budget Support of D3.01 billion from development partners, compared to D3.18 billion in  2024. The bulk of the budget support is expected to come from the World Bank, D2.065 billion (US$29.5 million), and the European Union, D945 million (€13.5 million).

Capital expenditure is estimated at D15,958,419 billion from D11,866,383 in 2024. Expenditure on interest payments is also estimated to rise to D5,881,643 billion from D5,133,095 billion approved in 2024.

“To reduce public debt, deficit financing for 2025 will be minimal. It will be financed mainly from domestic financing and external borrowing. The Gross Deficit is estimated to reach D198.32 million, or 0.10% of Nominal GDP. The budget deficit is the lowest in the last 10 years, much less than 1% of the GDP. The budget deficit of 2025 is a reduction of 67% from 2024,” the finance minister told the Lawmakers.

According to the estimates, the following ministries and offices have the highest allocations. Office of the President estimated at D1,085,644 billion from over D872 million approved in 2024, Ministry of Education is estimated at D5,086,487 billion, Ministry of Foreign Affairs at D2,402, 022 billion, Ministry of Works and Transport D2,166,783 billion, Ministry of Finance at D2,491,366 billion, Centralised Services at D1,350,721 billion, Ministry of Health D2,657,743 billion, Ministry of Energy estimated at D1,263,413 billion, Ministry of Defense at D1,065, 742 billion, Ministry of Interior at D1,896,572 billion and National Debt Service is estimated to cost D11,017,789 billion.

However, some ministries have been allocated less than last year’s approval budget.

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