By Fatou Dahaba
The Gambia’s public finances have recorded an impressive start to 2025, with total revenue reaching GMD13.78 billion in the first half of the year, a 29% increase from GMD10.69 billion during the same period in 2024, according to Hon. Seedy Keita, Minister for Finance and Economic Affairs.
Presenting the oral ministerial statement on implementing and monitoring the 2025 Annual Budget, Keita highlighted the robust fiscal performance, which exceeded mid-year targets and underscored the government’s enhanced revenue mobilization efforts.
The total revenue, excluding project grants, represents 43% of the GMD32.10 billion annual budget for 2025, surpassing the mid-year target of GMD12.61 billion by 9%. Keita attributed this overperformance to significant improvements in key revenue streams, including taxes on profits and capital gains, taxes on goods and services, taxes on international trade and transport, and non-tax revenues from Ministries, Departments, and Agencies (MDAs).
Taxes on profits and capital gains saw a 26% increase, rising from GMD2.95 billion in the first half of 2024 to GMD3.73 billion in 2025. This growth was driven by a 46% increase in taxes paid by individuals and a 60% surge in corporate and enterprise taxes. “This improvement reflects stronger compliance and economic activity,” Keita noted, crediting enhanced tax administration systems for the gains.
Similarly, taxes on goods and services performed strongly, achieving a 55% collection rate against the annual budget of GMD8.25 billion, totaling GMD4.58 billion in the first half of 2025. General taxes on goods and services and excise duties led this growth, with collection rates of 55% and 57%, respectively. Keita emphasized that the deployment of a more advanced customs system has significantly boosted efficiency in tax collection, contributing to these results.
On the expenditure side, total spending reached GMD14.51 billion, representing 45% of the GMD32.30 billion annual budget. Key drivers included personnel emoluments, with a 54% execution rate, subsidies and transfers at 53%, and domestic interest payments at 47%. Despite the strong revenue performance, the budget recorded a deficit of GMD724.84 million by the end of June 2025. Keita expressed optimism about reducing this deficit, citing plans to moderate expenditure growth and anticipate additional revenue from program grants in the second half of the year.
“The budget implementation for the first half of 2025 reflects strong domestic revenue performance, surpassing last year’s collections by 29%,” Keita stated. “This overperformance underscores the positive momentum in our fiscal mobilization efforts.” However, he acknowledged significant spending pressures, particularly from rising debt interest payments, personnel costs, and subsidies to public institutions, which have strained the budget.
The Finance Minister’s statement highlights the government’s ongoing efforts to balance revenue growth with prudent expenditure management. The enhanced customs system and improved tax administration have been pivotal in driving revenue gains, while the government continues to address challenges posed by rising costs. Keita reiterated the commitment to meeting annual fiscal targets, emphasizing that strategic measures to control spending and secure additional grants will help narrow the deficit.
As The Gambia navigates its fiscal landscape in 2025, the strong revenue performance signals a positive outlook for economic stability. However, the government faces the challenge of managing expenditure pressures to ensure sustainable public finances. With increased efficiency in tax administration and anticipated program grants, Keita remains confident that the country is on track to achieve its fiscal goals for the year, fostering economic resilience and growth.
