By Tabora Bojang
Government spending is to increase to D47.4 billion in 2025 representing an increment of 21 percent from the 2024 budget.
Of the D47.4 million total expenditure, D31.2 billion will be recurrent and D16.2 billion will be capital and net lending.
This was announced by Finance Minister Seedy Keita when he delivered the 2025 budget speech to parliament on Friday.
He explained that personnel emoluments will be increased from D7.4 billion in 2024 to D8.8 billion in 2025 due to a 30 percent increment of salaries, while the goods and services expenditure will increase from D9.79 billion in 2024 to D9.98 billion in 2024 mainly due to “OIC related” expenditure.
He said debt service repayment is expected to increase from D7.5 billion to D11.1 billion in 2025.
Revenue and grants
The minister said in 2025, revenue and grants are projected at D44.7 billion. He said D29.1 billion will be domestic revenue and D15.6 billion will be grants. According to him The Gambia’s tax collection is “relatively below” sub-Saharan Africa average.
However, tax revenue is projected at D21.2 billion, representing 23 percent increase from 2024 budget and non-tax revenue is expected to increase by 45 percent mainly due to an anticipated receipt of US$50 million equivalent to D3 billion as “payment for the second tranche” of the Senegambia Bridge asset recycling with Africa50.
Security spending
Minister Keita announced that the defence budget is expected to increase by 17 percent. D100 million is allocated to cover Conditions of Service of the Armed Forces scheme, D150 million for army’s food services and D13.65 million for operations and maintenance and D24.40 million for the renovation of military barracks. Food and Food Services for the police and prisons is allocated D121.70 million. D10 million is allocated for the construction of police stations and posts and D162 million will be given to the drug squad DLEAG as annual subvention.
Vehicles for embassies
According to the minister D74.34 million will be allocated for the purchase of vehicles for Gambian embassies in Washington, Paris, Jeddah, Rabat, Havana, Pretoria, Beijing and Moscow. D10 million is allocated for the construction of a chancery in Dakar. He added that D50 million is allocated in the Ministry of Foreign Affairs budget for post-OIC activities and D356.94 million for embassy rents.
Health expenditure
According to the finance minister key items for health expenditure in the budget will include D209 million for drugs, dressings and medical supplies; D111 million for payment of Cuban doctors; D42 million for vaccines; and D797 million on personnel emoluments which includes D71.50 million for overseas medical treatment. D50 million is allocated for the National Health Insurance Scheme and D42.59 million and D90.40 million allocated for health infrastructure.
Higher education, scholarships
The budget of the Ministry of Higher Education includes D100 million as subventions to tertiary institutions; D150 million for scholarships; D40 million for the Student Loan Scheme; D20 million for school bus services; and D5 million for research and innovation.
New revenue measures
The minister announced a series of revenue measures will be introduced from January 2025. Withholding tax of 1 percent on sales or purchase of air tickets; withholding tax of 15 percent for property used for commercial purposes and 8 percent for property used for residential purposes.
Tax on winnings of betting, gaming, lottery, and gambling, will be increased from 30 percent to 40 percent. Tax on tobacco products, wines, spirits and beers will all be increased.
He said the government will also introduce export duty for waste and scrap metals.
