By: Kemo Kanyi
Seedy Keita, the minister of Finance and Economic Affairs, Friday informed lawmakers that the 2025 budget estimates anchors on the reduction of debt vulnerability and investment in human capital (education and health), infrastructure and agriculture to support enhanced economic development as he tabled an estimate of D52.9 billion for the year.
He stated that in order to realize those targets, the government will make emphasis on domestic resource mobilization, supporting the compensation of the core civil service and investing in the priority sectors as in line with the Recovery-Focused National Development Plan.
The finance minister said the Revenue Estimates for 2025, total Revenue and Program Grants is projected at D32.10 billion, representing an increase of 24% compared to the approved 2024 budget of D25.93 billion, adding that this is as a result of significant increases in both domestic revenue and program grants for 2025.
‘’Tax revenue is expected to increase by 23% primarily driven by continued Tax Policy alignment, review of the investment code to strengthen control on tax expenditures, policy actions to support tax compliance, enhance enforcement measures and the implementation of digital solution to improve administration,’’ Keita informed the National Assembly as he read the 2025 budget estimates.
The minister further told the lawmakers that both Corporate and Personal Income Tax are expected to grow due to strengthened compliance through data matching, revocation of Special Investment Certificates (SICs) of non-compliant companies and other enforcement actions. ‘’Value Added Tax (VAT) will also see a boost in 2025, thanks to ongoing audit in key sectors like telecoms and banking, planned audit in the hospitality sector and the planned introduction of an e-VAT invoicing system, which we anticipate will reduce fraud.’’
On the Non-Tax Revenue, minister Keita said, the government is confident that it will increase by 45% in 2025 compared to 2024, mainly due to an anticipated receipt of D3.5 billion (US$50 million) as payment for the second tranche of the Senegambia Bridge Asset Recycling Program.
Seedy Keita disclosed to the lawmakers that, the 2025 Estimates includes expected Budget Support of D3.01 billion from development partners, compared to D3.18 billion in 2024. He added that the bulk of the budget support is expected to come from the World Bank D2.065 billion (US$29.5 million) and the European Union D945 million (Euro 13.5 million).
