Gambia Forecasts a 5% Surge in 2024 Total Revenue and Grants to D34.93 Billion
By Mariama Dem
The Gambia is optimistic about its economic prospects in 2024, forecasting a 5% growth in Total Revenue and Grants to reach D34.93 billion. Finance Minister Hon. Seedy Keita highlights key initiatives, including a 24% boost in tax revenue and the adoption of a tax expenditure policy, aimed at enhancing fiscal stability and reducing reliance on external support.
The 2024 budget also reflects strategic adjustments in project grant disbursement to align with the nation’s fiscal goals. According to Minister Keita, the introduction of a tax expenditure policy, designed to augment revenue by reducing exemptions, improving third-party data collection, and ensuring stricter tax compliance.
Efforts are underway to bolster Corporate Income Tax collection from major contractors, particularly those involved in significant government contracts within the construction sector and Public-Private Partnership (PPP) projects. Preliminary engagements have commenced, with contractors expressing readiness to regularize their tax obligations.
Furthermore, the scope for rental income tax collection will be expanded by establishing a comprehensive register of owners of residential and commercial properties. This measure aims to strengthen tax compliance in this income tax category.
On the front of Non-Tax Revenue, Minister Keita anticipates an 86% increase, driven by the partial expected receipts of 10 million Dollars from an arbitration award and the initial tranche of 15 million Dollars from the Trans-Gambia Asset Recycling Program. An additional 500 million Dalasis has been factored in to enhance non-tax revenue, aligning with the nation’s emphasis on domestic resource mobilization for sustainable development.
Minister Keita stressed the need for an expanded revenue base, emphasizing the importance of self-reliance in national development rather than dependence on donor and partner support.
READ: Government Set to Splurge D39 Billion in 2024
The 2024 budget incorporates D3.18 billion in Budget Support from government development partners, a notable increase from D2.77 billion in 2023. The primary contributors to this support include the World Bank (USD25 million), the European Union (EUR14 million), the African Development Bank (USD7 million), and Agence France Development AFD (EUR 5 million).
In a strategic move, project grant disbursement is revised downwards by 34% to align more closely with the optimistic projections of 2023. This adjustment aims to ensure that estimates closely match anticipated outturns, contributing to a more sustainable and realistic fiscal plan for the year ahead.