By: Alieu Ceesay
As The Gambia navigates its economic recovery, the Minister of Finance and Economic Affairs, Seedy Keita, presented the 2026 draft Estimates of Revenue and Expenditure to the National Assembly on 31 October 2025, with a D36.49 billion blueprint that emphasizes human capital investment and macroeconomic stability, marking significant year-over-year growth from the 2025 allocations while achieving the lowest budget deficit in a decade.
Compared to the 2025 projections—total revenue and grants at D32.10 billion and expenditure at approximately D33.10 billion (yielding a 1% deficit on All Funds)—the 2026 plan forecasts robust expansion. Total revenue and grants for Government Local Funds (GLF) are projected at D35.87 billion, a 11.7% increase from the 2025 GLF baseline of approximately D32.10 billion. This surge is driven by a 28% increase in tax revenue, fueled by digital tools such as e-invoicing and a new IT-enabled rental income tax system, alongside revenue assurance in the telecom and fintech sectors.
Total expenditure and net lending increase by 13% to D36.49 billion, reflecting the strategic priorities. Personnel emoluments rise 16.36% to D10.29 billion, up from D8.84 billion in 2025, to accommodate housing allowances, promotions, and workforce expansion—continuing a people-centric approach that has seen cumulative salary hikes of 110% since 2022.
Subsidies and transfers experienced the sharpest growth, at 24%, reaching D8.01 billion from D6.46 billion the previous year, with boosts in energy, infrastructure, agriculture, and subsidies to the health and education sectors. Debt service, the largest outlay, escalates 22% to D13.5 billion (from D11.07 billion in 2025), accounting for 30% of the budget amid global pressures.
Human capital sectors shine brightest: Combined allocations for Education, Health, and Agriculture total D10.82 billion, or 25% of the GLF expenditure—a substantial increase from the estimated D5.89 billion in 2025. Agriculture alone surges 84% to D1.77 billion, its highest in ten years, targeting food security and rural livelihoods.
These figures build on the mid-year performance of 2025, where execution reached 61% by August, with tax revenue exceeding targets by 16.3% (D16.55 billion collected versus projections). The 2026 GLF deficit narrows to 0.3% of GDP—the lowest in five years—while the All Funds deficit at 1% is the best in a decade, underscoring fiscal consolidation.
Reforms, such as expanding Program-Based Budgeting to 15 ministries, ensure outcome-driven spending under the Recovery-Focused National Development Plan. Yet, challenges loom: rising debt, global volatility, and climate risks. The government vows concessional borrowing and agency rationalization for resilience
“The budget we present today is a strategic blueprint for our nation’s progress, anchored in the theme: ‘Improving the Well-Being and Quality of Life of Gambians.” He told lawmakers on Friday.
“This principle guides our three core objectives: to sustain macroeconomic stability through prudent policies; to deepen structural reforms for a resilient economy; and to strengthen public financial management for the efficient use of our national resources,” Keita added.
The Finance Minister said the 2025 budget has reminded the government to maintain strict expenditure control to stay within the approved Budget, even as it meets essential commitments on salaries, debt service, and subsidies.
“The 2026 Budget is built on a foundation of strong revenue performance over recent years, and we will maintain the strict expenditure controls.”
Lawmakers are expected to scrutinize the budget before it is approved in the coming weeks.
