The budget deficit for 2026 for all funds, government local funds and donor funds, is projected at 1%, the lowest in the last 10 years, Finance Minister Seedy Keita told parliament on Friday.
Economic expansion is expected to reach 5.9% in 2025, before slowing down to 5.5% next year.
"This trajectory is underpinned by strategic investments in infrastructure, a strong recovery in tourism, and stable performances in trade and finance," Keita said as he presented the 2026 budget estimates.
Total revenue and grants are forecast to increase by 11.7% to 35.87 billion dalasi, compared with 32.1 billion dalasi in 2025, while total expenditure will rise 13% to D36.49 billion next year, compared with 32.3 billion this year.
“This will be driven by a significant 28% growth in tax revenue, to be achieved through enhanced compliance, digital solutions like e-invoicing, new IT enabled rental income tax system and the introduction of revenue assurance for telecom and fintech,” Keita said. “Key policy adjustments will deepen compliance and reforms in the tax administrations which will leverage on digital technology.”
Debt services continue to attract a large portion (30%) of the expenditure budget amounting to D13.5 billion in 2026 from D11.07 billion in 2025; an increase of 22%, Keita said.
The 2026 budget, anchored on the idea of “improving the well-being and quality of life of Gambians”, sees a significant spending on education, health and agriculture which make up a combined D10.82 billion or 25% of the total budget of D59.3 billion.
“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,” he said.
Gambia has seen mixed performance as domestic revenue, at D18.58 billion, fell short of its target, primarily due to underperformance in non-tax revenues. However, tax revenue outperformed expectations, reaching D16.55 billion—a surplus of D2.32 billion, or 16.3% above projections—driven by robust collections from corporate, goods and services, and international trade taxes.
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