Gambia Ministry Warns: New Government Vehicle Spending Policy Needed

• The Gambia's Ministry of Finance projects D257.29 million for government vehicle spending in 2027.
• The Ministry warns that current spending on vehicle purchases, fuel, and maintenance requires a clear policy to control costs.
• Actual expenditure on vehicles was D1.17 billion in 2025, with D852.20 million approved for 2026.
• The government is strengthening Programme-Based Budgeting implementation to improve resource allocation and accountability, with full MDA coverage in 2027.
• The Gambia maintains a policy of avoiding non-concessional loans and projects a 2027 budget deficit of GMD87.351 billion (0.04% of GDP).

The call for a new policy specifically targets the purchase, fueling, and upkeep of public procurement vehicles, aiming to curb the substantial resources currently directed towards them.

The Gambia's Ministry of Finance and Economic Affairs has signaled an urgent need for a comprehensive policy to manage government vehicle expenditures, as projections indicate a significant allocation of D257.29 million for vehicles in 2027. This figure is part of the 2027-2029 Programme-Based Budget (PBB) submitted to the National Assembly, highlighting a trend that officials believe requires immediate constraint. The Ministry has explicitly warned that current spending on vehicle acquisitions, fuel, and maintenance has reached unsustainable levels, necessitating a clear framework to control these escalating costs.

This projected spending for 2027 follows substantial outlays in previous years. In 2025, actual expenditure on government vehicles amounted to D1.17 billion, demonstrating a considerable investment in this asset class. For the subsequent year, 2026, an allocation of D852.20 million was approved. The Ministry underscored that these figures represent "significant investments" and cautioned that this pattern is likely to persist without deliberate intervention. The call for a new policy specifically targets the purchase, fueling, and upkeep of public procurement vehicles, aiming to curb the substantial resources currently directed towards them.

The Ministry of Finance's warning regarding vehicle spending is integrated into a broader governmental initiative to enhance fiscal management and align public expenditures more closely with national priorities. A cornerstone of this strategy is the strengthening of Programme-Based Budgeting (PBB), a system designed to fundamentally alter how public resources are planned, allocated, and evaluated across The Gambia. This approach shifts the budgetary focus from mere inputs, such as fuel, stationery, or wages, towards tangible outputs and outcomes, ultimately emphasizing the services delivered to citizens.

The Gambia initially adopted Programme-Based Budgeting in 2014, extending its application to all ministries, departments, and agencies (MDAs) by 2017. Since 2018, these entities have been mandated to prepare and submit PBB statements to the Ministry of Finance and Economic Affairs. However, for several years, these statements were not consistently utilized in the review of budget submissions and were not presented to the Cabinet or the National Assembly to support the approval of budget estimates. This began to change in 2025, marking the commencement of a concerted effort to reinforce PBB implementation, fulfilling commitments outlined in the Recovery-Focused National Development Plan 2023-2027.

The 2027 budget addendum signifies the third year of this intensified PBB initiative. Currently, PBB statements are being applied with greater systematic rigor during the budget review process and are now formally included as part of the government's official budget documentation. The Ministry has articulated four primary objectives for this enhanced system: to improve the allocation of public resources, to strengthen accountability in spending, to accurately measure programme performance, and to ensure that all expenditures are directly aligned with the nation's development priorities. This phased implementation saw a focus on four selected ministries in 2025, expanding to 15 MDAs in 2026, and now encompasses all MDAs for the 2027 budget, though the Ministry acknowledges that its full realization remains a work in progress.

Beyond the specific focus on government vehicle spending, the Ministry of Finance's budget presentation also outlined the government's wider fiscal management strategy, including its approach to borrowing and deficit management. The government has reaffirmed its commitment to avoiding non-concessional loans, including those intended for development projects. Instead, its borrowing strategy will continue to prioritize concessional terms, reflecting a prudent approach to national debt.

Under the ongoing fiscal consolidation program, the gross budget deficit for 2027 is projected at GMD87.351 billion, which the Ministry calculates as a mere 0.04 percent of the Gross Domestic Product. This deficit is slated to be financed in accordance with the Medium-Term Debt Strategy, which aims to meet the government's financial requirements at the lowest possible cost while maintaining a judicious level of risk. The proposed policy to curb Gambia government vehicle spending, therefore, aligns with these overarching goals of fiscal responsibility and efficient resource allocation, reinforcing the principles embedded within the strengthened Programme-Based Budgeting framework.

Lawyers advising clients involved in public procurement or government contracts in The Gambia should closely monitor the development of the announced policy to curb government vehicle spending, as it will directly impact future tenders for vehicle supply, maintenance, and fuel. The strengthening of Programme-Based Budgeting also signals increased transparency and accountability in public resource allocation, which may affect contract terms and compliance for government suppliers.

Source: Original reporting via Ministry of Finance and Economic Affairs