By Omar Bah
Finance Minister Seedy Keita has confirmed that the government receives donor funding to support various initiatives.
In November, Minister Keita addressed the National Assembly, highlighting the significant challenges the government is facing in implementing the 2024 national budget, mainly due to insufficient budget support from development partners. “This year has posed extraordinary challenges in executing the budget. We have encountered difficulties on both the expenditure and revenue fronts, creating a difficult balancing act for us,” the minister stated. Nevertheless, he noted that budget support has begun to arrive in response to inquiries from journalists during a recent press conference held by the Gambia Revenue Authority (GRA).
“Until November last year, we relied heavily on our domestic resources, an unprecedented situation. Over those eleven months, we encountered significant expenditure shocks, including a D20 million support package for Nawec. This government has made a conscious effort to ensure that electricity rates remain stable. Furthermore, we financed 99 percent of the OIC operations using internal resources, especially when international partners were not forthcoming,” he stated.
Minister Keita emphasized that The Gambia’s tax levels are below the African average, countering assertions that the GRA is excessively taxing citizens. “Compared to our development partners, their tax revenue ratio to GDP stands at 35 percent, whereas we are approximately three times below that level. Our focus is enhancing tax compliance, which involves bringing previously unreported transactions into the tax net. Claims of overtaxation are misleading. Over-taxation would manifest as higher tax rates, and I would like to clarify that we have not increased any tax rates,” he explained.
Moreover, Minister Keita highlighted the notable improvements made by the GRA in fuel taxation following the introduction of fuel marking. “In just four months, the GRA has achieved an increase of almost D900 million compared to the same period last year, despite similar transaction sizes. This reflects the inclusion of previously untaxed activities into the tax net. For instance, we are now monitoring rental income, which offers valuable insights into compliance levels and overall economic activity. Consequently, we are broadening the tax base and strengthening connections through digitalization,” he noted.
