Finance Minister Projects Government Spending to Hit D52.4 Billion in 2026

Seedy Keita, Finance Minister

By Fatou Sillah

Gambia’s Minister of Finance and Economic Affairs, Seedy Keita, said on Friday that government spending is expected to rise to D52.4 billion in 2026, driven largely by election-year costs, the clearing of domestic arrears, and expanded subsidy commitments.

The projection represents a nominal year-on-year increase of 12 percent from the 2025 budget. “This will be driven by funding of election-related activities, clearance of expenditure arrears, and full provisioning of subsidies,” Mr. Keita said as he presented the government’s medium-term expenditure outlook.

Recurrent spending is expected to reach D31.3 billion in 2026, while capital expenditure and net lending are projected at D19.5 billion. Personnel costs alone are forecast to rise to D10.3 billion—an increase of about 5 percent—reflecting promotions and grade adjustments across the civil service.

Mr. Keita also pointed to last year’s major public-sector salary adjustment, which he said has raised cumulative salary increases under the current administration to 110 percent. That reform, he noted, continues to “improve the well-being of Gambians,” he said.

Spending on goods and services—classified as “other charges” in the budget—will also expand, driven by election preparations, arrears payments, and ongoing subsidies, including support to the national electricity utility.

“Other charges will be driven by the funding of election-related activities, clearance of domestic arrears, full provisioning of subsidies, and electricity subsidy,” he said.

On capital expenditure, the minister said most major road projects are now funded through the National Road Fund under the Ministry of Transport, with only limited financing coming directly from the central government.

Looking ahead, Mr. Keita said the government aims to keep spending growth below the pace of nominal GDP expansion as part of a broader medium-term strategy to stabilize public finances. Fiscal reforms—including the rollout of program-based budgeting, the rationalization of redundant agencies, and a restructuring of state-owned enterprises—will be central to that effort.

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