Finance Minister Says Government Spent D7.23 Billion on Subsidies and Transfers in 2025

By Fatou Sillah

The Minister of Finance and Economic Affairs, Seedy Keita, on Monday told the National Assembly that the government spent D7.23 billion on subsidies and transfers to subvented institutions during the 2025 fiscal year as part of broader public expenditure that also included salaries and domestic debt obligations.

Presenting a breakdown of the execution of the 2025 budget, Mr. Keita said personnel emoluments, subsidies and transfers, and interest payments on domestic debt were the principal drivers of spending under the Gambia Local Fund (GLF).
“The main drivers of GLF expenditure include spending on personnel emoluments, subsidies and transfers to subvented institutions, and domestic debt interest,” the minister said. “Personnel emoluments amounted to GMD 9.58 billion, whilst subsidies and transfers amounted to GMD 7.23 billion.”

Mr. Keita said total GLF expenditure and net lending for 2025 reached GMD 31.36 billion, representing 97 percent of the approved annual budget.

According to the minister, the figures also indicate that the government’s internally generated revenues financed the vast majority of public spending during the year.

“The overall GLF expenditure and net lending for the end of the 2025 period amounted to GMD 31.36 billion, which represents 97 percent of its budget for the year,” he said. “This shows that our internally generated revenues cover 91 percent of total expenditure during the review period.”

The minister noted that current expenditure exceeded its approved budget, largely due to increased costs associated with wages, transfers, and interest payments.

“Current expenditure represents 103% of its approved annual budget of GMD 28.28 billion, which amounted to GMD 29.20 billion for the period under review,” Mr. Keita said. “However, it is GMD 7.56 billion above the previous year’s outlay.”

Capital spending, however, fell short of projections for the year. Mr. Keita said capital expenditure totaled GMD 2.16 billion, representing 57 percent of the approved annual budget of GMD 3.78 billion.

He added that capital expenditure declined compared with the previous year.

“Compared to the corresponding period a year ago, capital expenditure decreased by GMD 521.18 million, or 19 percent,” he said, attributing the reduction to the use of National Roads Authority (NRA) levy funds to finance infrastructure development programs.