ANG

Gambia/ Gambia Slashes Q1 Budget Deficit by 67% as Revenue Rises, Spending Falls

Gambia, 19 agot 26 (ANG) - The Ministry of Basic and Secondary Education remained the largest spending government entity, accounting for GMD 1.36 billion, or 17 percent of total expenditure. The spending covered teachers’ salaries, examination fees, the School Feeding Programme and grants to individual schools.

Health expenditure also increased. The Ministry of Health spent GMD 719.7 million during the quarter, 9 percent more than in the same period last year, largely reflecting increased transfers to public hospitals.

The government also benefited from a decline in debt-servicing costs.

Interest payments on government debt fell by 14 percent to GMD 1.36 billion, mainly because of lower domestic interest costs. The reduction provided some relief to a budget that continues to face substantial debt-related pressures.

Capital expenditure, however, remained weak. Government spent GMD 738.7 million on infrastructure and other long-term investments during the quarter, equivalent to 21 percent of the annual capital budget but 36 percent lower than in the first quarter of 2025.

The Ministry of Finance attributed the decline to slower implementation of infrastructure projects at the beginning of the year and identified capital expenditure as an area requiring close monitoring in the coming quarters.

The government financed the remaining deficit through domestic borrowing, continuing a pattern seen in previous quarters.

The first-quarter report also forms part of the government’s broader transition towards performance-based budgeting — a system that seeks to assess public spending not only by how much money is allocated or spent, but also by the results achieved.

The reform was piloted in four government institutions in 2025 and is being expanded to 16 institutions in 2026.

The first-quarter figures therefore present a mixed but broadly encouraging fiscal picture.

Revenue collection is strengthening, tax performance is improving and expenditure has been brought under greater control. At the same time, the sharp deterioration during January and February demonstrates how quickly fiscal pressures can build, while the decline in capital expenditure raises questions about the pace at which budgeted development projects are being delivered.

The challenge for government will be to sustain the March correction rather than treat it as a one-off improvement.

A smaller deficit is welcome, but the quality of that adjustment matters. Stronger domestic revenue mobilisation, disciplined recurrent spending and efficient investment in infrastructure must continue together if the government is to improve fiscal stability without compromising essential public services and development priorities.

ANG/Gambia Daily