The Gambia is projecting a major rise in government revenue under its proposed D66.78 billion 2027 national budget, with domestic collections expected to jump by more than 16 percent as authorities seek to finance increased public spending.

The proposed budget is 12.5 percent higher than the D59.36 billion approved for 2026, reflecting higher revenue projections, donor support and additional borrowing.

Domestic revenue is projected at D37.39 billion next year, up 16.1 percent from the previous year, while tax revenue is expected to reach D31.47 billion — a 16.5 percent increase.

The government expects project and programme grants to contribute another D19.54 billion, bringing total projected revenue and grants to D56.94 billion.

The figures leave the government facing a projected gross budget deficit of D2.30 billion, equivalent to 0.99 percent of projected GDP of D233.07 billion.

The government plans to finance D48.6 billion, or 72.8 percent of the overall budget, directly from government resources. Grants are expected to account for D15.97 billion, while new loans are projected to provide D2.21 billion.

Despite the increased revenue projections, debt obligations remain a major feature of the spending plan.

National debt service is allocated D16.17 billion, making it the largest single item within government-funded expenditure and accounting for roughly one-third of the D48.6 billion in government-funded appropriations.

Education remains the biggest sectoral priority, with Basic and Secondary Education allocated D6.06 billion, while the health sector is set to receive D4.10 billion.

Domestic borrowing is projected at D7.63 billion, broadly unchanged from 2026. Foreign borrowing, meanwhile, is expected to rise by around 52 percent to D2.21 billion.

Recurrent expenditure is estimated at D43.32 billion, accounting for approximately 89 percent of government-funded spending, compared with D5.28 billion for government-financed development expenditure.

However, donor-funded projects push total planned development expenditure to D23.47 billion, or about 35 percent of overall government expenditure.

The proposed 2027 budget therefore combines higher domestic revenue expectations with continued reliance on grants and borrowing, while allocating significant resources to debt servicing, education, health and development programmes.

By Adama Makasuba