By Kebba AF Touray
Finance and Economic Affairs Minister Seedy Keita has reported significant growth in domestic revenue performance in the first quarter of 2025, pointing to improved tax administration and economic resilience as key contributors to the gains. But he also cautioned that revenue growth is being tempered by rising government expenditures, particularly on personnel and institutional subsidies.
Delivering an oral ministerial statement to lawmakers as part of the annual budget monitoring and implementation review, Minister Keita presented data showing strong performance in key revenue categories.
Profits and Capital Gains Lead Revenue Surge
Taxes on profits and capital gains reached GMD1.502 billion in the first quarter, representing a 39 percent increase compared to the same period in 2024. This growth, Keita noted, was driven by an annual rise in tax payments by both individuals (31%) and corporate entities (42%).
International Trade and Transport Taxes Improve
Revenue from international trade and transport taxes amounted to GMD1.714 billion, achieving 52 percent growth over the first quarter of FY2024. The minister said this category reflects a budget execution rate of 29 percent, underlining steady momentum in trade-related tax performance.
Goods and Services Taxes Also Up
Taxes on goods and services brought in GMD2.263 billion, a 15 percent increase from Q1 of 2024. This represents a 27 percent execution rate against the annual budget target. Keita attributed the gains to the solid performance of general goods and services taxes, which benefited from improved enforcement and compliance strategies.
Overall Domestic Revenue Up 19 Percent
According to Minister Keita, the overall domestic revenue collection showed an over-performance of 19 percent compared to the same quarter last year. Actual total revenue stood at GMD6.674 billion, exceeding the quarterly budget target of GMD6.466 billion by 3 percent.
“This outcome demonstrates significant progress in the efficiency of tax administration, including the deployment of enhanced compliance mechanisms,” he told the Assembly.
Spending Pressures Rise Alongside Revenue
Despite the revenue gains, the Minister warned of increasing fiscal pressure. He reported that actual General Local Fund (GLF) expenditure rose 25 percent compared to Q1 of 2024. However, total GLF expenditure of GMD8.130 billion still remained below the quarterly budget ceiling of GMD8.352 billion.
The Minister explained that higher spending was driven by “increased personnel emoluments and transfers to public institutions.”
Budget Deficit Narrows Below Projections
The actual gross deficit for the quarter was reported at GMD1.45 billion, which is 23 percent lower than the projected GMD1.88 billion. The reduced deficit, according to Keita, reflects improved revenue performance and prudent expenditure management.
Minister Keita’s statement offered a cautiously optimistic outlook for the economy, noting that while revenue performance has exceeded expectations, the government remains mindful of managing spending pressures to maintain fiscal sustainability throughout the rest of the year.
