Gov’t targets economic stability, growth as 2026 budget priorities

According to the minister, this growth is driven by improved macroeconomic stability, better agricultural productivity, rising tourist arrivals, steady remittance inflows, and government investments aimed at closing the infrastructure deficit.

He said inflation, once a major concern, is easing. The tight monetary policy rate of 17 percent maintained by the Central Bank since August 2023 has contributed to inflation dropping from 10.0 percent in September 2024 to 7.0 percent by October 2025. “The Dalasi has also stabilized, with its rate of depreciation slowing significantly across major currencies.”

Keita credited President Adama Barrow for championing domestic resource mobilisation reforms, which continue to push tax revenue above target. “Tax-to-GDP is expected to reach 12 percent in 2025 and 13.2 percent in 2026, though still below regional and OECD averages. The government’s long-term aim, under the Domestic Resource Mobilization Strategy, is to reach the Sub-Saharan average.”

He added infrastructure remains at the heart of public expenditure. “Despite fiscal pressures, the government has completed Phases I and II of the OIC Road with 35 percent domestic funding. Major road projects Kiang-West (87km), Nuimi-Hakalang (85km), and the ongoing Kabbada stretch (102km) have all been supported from domestic resources. Nationwide, a total of 355km of priority roads are under construction.”

In agriculture, Keita underscored that the government is providing large-scale support to reduce production costs and boost yields. This includes D900 million in subsidies for crop financing and fertilisers, as well as free high-yield seeds. “The National Food Security, Processing and Marketing Corporation has also received D300 million in equity investment to strengthen its operations.”

“A substantial portion of national spending continues to go toward stabilizing the electricity sector, which received D1.3 billion in subsidies in 2024, with D1.0 billion allocated for both 2025 and 2026. Despite tight fiscal conditions, Keita assured that vital programs and projects will continue in 2026.

The fiscal deficit for the 2026 budget is projected to narrow to 1.0 percent of GDP, down from 1.3 percent in 2025, signaling the government’s push for consolidation, debt sustainability, and easing pressure on private-sector credit.”

Unveiling the guiding theme, improving the well-being and quality of life of Gambians, Keita said the 2026 budget focuses on three core goals: sustaining macroeconomic stability, deepening structural reforms, and strengthening public financial management.

“Human capital sectors Health, Education, and Agriculture will receive D18.6 billion, representing the highest allocation at 35.3 percent of the entire budget.”