The Ministry of Finance and Economic Affairs has projected an allocation of GMD 257.29 million for government vehicles in the 2027 fiscal year, according to the Program-Based Budget (PBB) for 2027–2029 submitted to the National Assembly.
The Ministry highlighted the urgent need for a comprehensive vehicle policy covering purchase, fuel, and maintenance, noting that expenditures in this category remain substantial. Actual spending reached GMD 1.17 billion in 2025, with GMD 852.20 million approved for 2026, before dropping to the projected GMD 257.29 million in 2027. Officials cautioned that without policy constraints, such investments could continue to strain public resources.
Fiscal Discipline and Borrowing Strategy
The Finance Ministry underscored its commitment to fiscal consolidation, stating that the gross budget deficit (GLF) for 2027 is projected at GMD 87,351 million, equivalent to 0.04 percent of GDP. The deficit will be financed in line with the Medium-Term Debt Strategy (MTDS), which prioritizes concessional borrowing to minimize costs and risks.
The government reaffirmed its stance against non-concessional borrowing, pledging to avoid agreements that could increase debt vulnerabilities and instead pursue financing on concessional terms.
Program-Based Budgeting (PBB)
Introduced in 2014 and rolled out to all Ministries, Departments, and Agencies (MDAs) in 2017, PBB aims to shift the focus of budgeting from inputs to outputs and outcomes. Since 2018, MDAs have been required to prepare and submit PBB statements to the Ministry of Finance.
Initially, these statements were not integrated into budget reviews or presented to the Cabinet and National Assembly. However, beginning in 2025, the government strengthened PBB implementation under the Recovery-Focused National Development Plan (2023–2027), aligning budget processes with evidence-based policy and planning.
The 2027 budget marks the third year of this enhanced initiative, with PBB statements now systematically applied in budget reviews and presented as part of official documentation.
The Program-Based Budgeting (PBB) framework is designed to strengthen fiscal discipline by focusing on outcomes rather than inputs. Its objectives include improving resource allocation by channeling funds toward priority programs, enhancing accountability through transparent tracking of expenditures against objectives, and enabling performance measurement based on results and impact. PBB also ensures strategic alignment, linking budget allocations to long-term national development goals and reinforcing evidence-based policymaking.
Implementation Status
Progress has been gradual but steady. In 2025, the initiative focused on four ministries, expanding to 15 MDAs in 2026. The 2027 budget reflects full participation across all MDAs, though performance indicators are still being refined and not all targets are available.
Officials emphasized that publishing condensed PBB statements represents a further step toward aligning national budgets with strategic priorities, moving away from line-item accounting toward outcome-driven decision-making.
