The Gambia's government spent D3.10 billion on interest payments for its debt during the first six months of 2026. This represents a rise of 18% compared to the same period in 2025. Finance Minister Seedy Keita disclosed this information before parliament on Monday, according to a report by The Point. The amount spent on debt interest accounts for 45% of the total budgeted for the entire year.
Minister Keita presented the Mid-Year FY2026 Budget Performance Brief, which highlighted the government's financial performance from January 1 to June 30, 2026. The report showed that the government's total expenditure and net lending increased by 6%, reaching D15.42 billion during the period. This indicates that a significant portion of the government's spending went towards paying interest on existing debt.
The government's revenue also recorded growth during the period, with total revenue, excluding project grants, standing at D15.35 billion between January and June 2026. This represents an 8% increase over the D14.24 billion recorded during the same period in 2025. Tax revenue accounted for D13.36 billion of the revenue collected, increasing by 8% compared to the first half of 2025.
Minister Keita attributed the increase in revenue to improvements in tax collection and ongoing reforms, including digitalisation initiatives. Direct tax revenue reached D4.29 billion, while indirect tax revenue stood at D9.06 billion. Stronger collections were recorded from Corporate Income Tax, Personal Income Tax, Rental Income Tax, Domestic VAT, Customs Processing Fees, and Import VAT on non-oil items.
The minister also cited measures such as the Rental Tax Solution, increased tax audits, the digital weighbridge, improved valuations, and post-clearance audits as contributing to improved tax administration and revenue collection. Despite the increase in revenue, government spending remained slightly higher than revenue, resulting in a gross deficit of D68.86 million.
Minister Keita stated that the gross deficit was consistent with the budgeted figure. The mid-year budget review covers the government's financial performance from January 1 to June 30, 2026, with a focus on revenue mobilisation, spending, and deficit financing. The review provides an insight into the government's financial management and budget execution.
The Gambia's debt interest payments and budget performance have significant implications for the country's economic management. The government's ability to manage its debt and increase revenue will be crucial in achieving its economic goals. The mid-year budget review will likely inform policy decisions and budget adjustments for the remainder of the year.
Key points
- The Gambia spent D3.10 billion on debt interest payments in the first six months of 2026, a rise of 18% from the same period last year.
- The government's total expenditure and net lending increased by 6%, reaching D15.42 billion during the period.
- The government's revenue, excluding project grants, stood at D15.35 billion between January and June 2026, an 8% increase over the same period in 2025.
