Gambia’s 2027 Budget Rises 12.5% to D66.8 Billion as Debt Service Takes Nearly a Third of Government Spending

The Gambia’s proposed 2027 national budget has risen to D66.78 billion, a 12.5 percent increase from the D59.36 billion approved for 2026, with debt servicing emerging as the single largest claim on government-funded expenditure.

According to the 2027 budget estimates, D48.6 billion, or about 72.8 percent of the overall budget, will be financed directly by the government. Grants are expected to account for D15.97 billion, or 23.9 percent, while new loans will provide D2.21 billion, representing 3.3 percent.

The government projects domestic revenue of D37.39 billion in 2027, an increase of 16.1 percent from the previous year. Tax revenue is expected to reach D31.47 billion, representing a 16.5 percent increase.

When project and programme grants totaling D19.54 billion are included, total revenue and grants are projected at D56.94 billion.

Expenditure and net lending are estimated at D59.24 billion, leaving a gross budget deficit of D2.30 billion, equivalent to 0.99 percent of the country’s projected nominal gross domestic product of D233.07 billion.

By comparison, the 2026 budget projected a deficit of D2.07 billion, equivalent to 1.01 percent of GDP.

The government expects to borrow D7.63 billion domestically, broadly unchanged from 2026 levels. Foreign borrowing, however, is projected to rise by about 52 percent to D2.21 billion.

National debt service is the largest single allocation in the government-funded budget, at D16.17 billion. That amounts to roughly one-third of the D48.6 billion in government-funded appropriations, highlighting the significant share of public resources required to meet existing debt obligations.

Basic and secondary education receives the largest sectoral allocation at D6.06 billion, followed by the health sector at D4.10 billion.

Recurrent expenditure accounts for D43.32 billion, or approximately 89 percent of government-funded spending, while government-financed development expenditure stands at D5.28 billion, representing about 11 percent.

Once donor-financed projects are included, however, the overall development budget rises to D23.47 billion, equivalent to roughly 35 percent of total planned government expenditure.

Here is the budget at a glance.

• Total budget: D66.78 billion, up from D59.36 billion in 2026
• Domestic revenue: D37.39 billion, up 16.1 percent
• Tax revenue: D31.47 billion, up 16.5 percent
• Project and programme grants: D19.54 billion
• National debt service: D16.17 billion
• Gross deficit: D2.30 billion, or 0.99 percent of GDP
• Projected nominal GDP: D233.07 billion
• Domestic borrowing: D7.63 billion
• Foreign borrowing: D2.21 billion