By Omar Bah
Opposition UDP deputy foreign secretary and a former staff of the African Development Bank, Lamin Manneh, has said government’s lack of fiscal discipline and misplaced priorities are discouraging donors.
The Gambia’s 2025 budget is projected at D47.4 billion, marking a 21% increase from 2024. The domestic revenue is estimated at D29.1 billion, which is about 14.7% of GDP.
According to government, the budget aims to enhance public service delivery and economic growth, with a medium-term goal of achieving a growth rate of 5%.
Last month, Finance Minister Seedy Keita told the National Assembly that government is seriously challenged in implementing the current budget because there was no substantial budget support from development partners.
Speaking in a Standard exclusive, Mr Manneh said in the past, Finance Minister Keita and his team would contend that budget support, project loans and grants were secured and would supplement the GLF resources to balance his budgets.
“Now, he has been compelled to admit before the National Assembly, that no substantial budget support from development partners has been forthcoming. That is an indictment for the Barrow government. The failure to secure substantial budget support is evidence of the economic mismanagement, incompetence and lack of fiscal discipline that characterise this government,” Manneh criticised.
He added: “Just like in the case of the 1.4 billion Euros pledged under the Brussels Round Table of Donors, the bulk of which never materialised, when the donor community doubts a government’s ability or willingness to properly manage the economy in general and the budget in particular of a country, they tend to hold back on budget support and other types of assistance.”
He said the difficult ongoing Extended Credit Facility negotiations with the IMF is another testimony to the poor performance of the Barrow government.
“On another note, for the past year, we have been reminding the country that the moratoria on the servicing of certain major loans will end in 2025 and 2026. This will invariably lead to a spike in debt-servicing figures. We are witnessing that with the D11 billion in the 2025 budget estimates, earmarked for debt servicing and which, by the minister’s own admission, will represent 29% of the budget,” he stated.
The figure, Manneh added, will be much higher in the 2026 budget because more loan payment deferrals would expire and the payments would become due.
“This spike in debt-servicing amounts will be compounded by the mechanical effect of the depreciation of the dalasi, which will continue as a result of the poor economic management and performance of the government. Gambians should tighten our belts because the economic road ahead will be very bumpy. Only the privileged few at the helm of the state institutions will be spared the hardship. The vast majority of Gambians will find it difficult to cater for the needs of their families,” he warned.
He said the finance minister is targeting the health sector for a reduction of the subsidies, arguing: “He [Minister Keita] contends that it is because of revenue concealment. Should that be the case, it should be ended but we fear that it is the beginning of cuts in the social sectors of health, education and agriculture, which are often the precursor to tough structural adjustment programmes that follow severe economic mismanagement as we are currently witnessing in The Gambia. No doubt, the minister will dispute that too, but in due course we will again be vindicated. Gambians, get ready for the rough ride ahead.”
