Public debt, which represents total borrowing from both domestic and external sources, rose sharply between 2022 and 2024. The Auditor General disclosed that disbursed outstanding debt stood at GMD64,426,758,121.99 in 2022. This figure increased significantly to GMD 82,439,558,570.99 in 2023, reflecting a 28 percent rise within one year. By the end of 2024, the debt stock climbed further to GMD85,260,000,000, representing an additional increase of 3.4 percent compared to the previous year.
An analysis of debt repayment revealed that approximately 39 percent of government collections are being used to service debt, a situation that continues to strain public finances.
The Auditor General also observed a discrepancy between budgeted and actual debt repayment amounts, amounting to about 0.31 percent, highlighting weaknesses in fiscal planning and execution.
In light of these findings, the Auditor General recommended that the Ministry of Finance and Economic Affairs adhere strictly to fiscal policies and implement mechanisms to mitigate the risks associated with these fiscal threats and ensure long-term debt sustainability.
He explained that the conclusions were supported by procedures that included obtaining and examining financial statements to verify disbursed outstanding debts reported under the Statement of Public Debt for the years under review. Budgeted figures were compared with actuals, and the process was validated through meetings and discussions with officials from the Ministry of Finance and the Accountant General’s Department.
The report also referenced a recent Joint World Bank and International Monetary Fund Debt Sustainability Analysis, which classifies The Gambia as facing a high risk of external and overall debt distress, despite public debt being considered sustainable over the medium term. According to the Auditor General, this situation is driven by the country’s medium debt-carrying capacity and a high external debt service-to-revenue ratio, which stood at 14.9 percent in 2024.
A major concern highlighted in the report is the present value of debt-to-revenue ratio, which reached 308.1 percent, far exceeding the 240 percent benchmark for countries with medium debt-carrying capacity. With a gross domestic product of GMD174.8 billion, the present value of external debt-to-GDP stood at 35.8 percent, below the 40 percent threshold. However, external debt service of GMD3.39 billion against total revenue of GMD34.93 billion underscores the growing pressure on public finances.
The Auditor General noted that breaching debt thresholds signals elevated fiscal risk and requires closer scrutiny and timely policy adjustments. He reiterated the need for strict fiscal discipline to protect the country’s financial future.
The report further addressed compliance auditing, which assesses whether public expenditure and revenue are applied for purposes approved by the National Assembly and in line with governing regulations. In accordance with Section 160 (1) (b) of the Constitution, the Auditor General reported that non-compliances were noted, reinforcing concerns about adherence to financial regulations and the need for stronger oversight.
