Debt servicing to consume D16.17B in 2027 budget
The Gambia is expected to spend D16.17 billion on debt servicing in 2027, taking up more than one-third of recurrent expenditure and leaving the government with less money to fund essential public services.
The allocation is contained in the 2027 Appropriation Bill presented to the National Assembly on Friday, October 23, by Finance and Economic Affairs Minister Seedy Keita.
The proposed budget puts total government expenditure at D59.24 billion, representing a 13.1 percent increase over the approved 2026 budget. Revenue and grants are projected at D56.93 billion.
Debt servicing is the single largest expenditure item in the proposed budget, accounting for 33.28 percent of Government Local Funds expenditure and 37.2 percent of recurrent expenditure.
The allocation is also higher than the combined amounts earmarked for the ministries of Health and Basic and Secondary Education, highlighting the pressure debt obligations continue to place on public spending.
“Debt service is expected to rise in 2027, accounting for approximately 33 percent of GLF expenditure. These pressures could further constrain fiscal space and result in reduced operating expenditures and limited resources for other priority programmes,” the bill states.
The government has also identified several risks that could affect the implementation of the proposed budget, including global and regional conflicts, climate change, fluctuations in commodity prices and uncertainty in the global economy.
According to the bill, the country’s dependence on imported fuel, food and other essential commodities leaves it vulnerable to external shocks, which could increase inflation and put further pressure on public finances.
Other risks include delays in policy implementation, unexpected expenditure, refinancing challenges and financial obligations linked to state-owned enterprises.
The proposed budget also projects a 9.8 percent increase in the public-sector wage bill, rising from D10.2 billion in 2026 to D11.2 billion in 2027. The government says personnel costs could further limit its ability to adjust expenditure in the short term.
However, the bill identifies improved domestic revenue mobilisation, faster structural reforms, lower inflation and stronger agricultural harvests as developments that could ease fiscal pressures.
The proposed spending plan remains subject to debate and approval by the National Assembly.
Source: The Point
