Overall budget deficit expands 35% Jan-August
By Mario Andree
During the first eight months of this year, ended August, the Government revenue and grants declined 24.7 per cent, while expenditure and lending declined 2.25 per cent according to data released by Finance Ministry.
The Ministry pointed out that during the first eight months of this year Government revenue and grants reached Rs 908.9 billion, down 24.7 per cent compared to Rs 1,206 billion recorded a year earlier.
During the period under review, State expenditure declined 2.25 per cent to Rs 1,883.7 billion from Rs 1,927 billion a year earlier.
According to the report, revenue generated by the Government during the first eight months stood at Rs 906.4 billion, down 24.8 per cent compared to Rs 1,205 billion generated last year.
Tax revenue during the period declined 27.5 per cent to Rs 801.3 billion from Rs 1,105 billion a year earlier. Non-tax revenue on the other hand improved 5.4 per cent to Rs 105 billion from Rs 99.6 billion last year.
Grants received by the Government during the first eight months stood at Rs 2.5 billion, up 74.7 per cent compared to Rs 1.4 billion received last year.
On the expenditure front, recurrent expenditure increased 11.3 per cent during the first eight months to Rs 1,670.3 billion from Rs 1,500.5 billion a year earlier.
Payment of salaries during the period under review cost the Government Rs 516.4 billion, up 15.6 per cent compared to Rs 446.4 billion paid last year, while interest payments during the eight months cost 653.5 billion, up 9 per cent compared to Rs 600 billion paid a year earlier.
However, capita and net lending by the Government declined 45.3 per cent to Rs 242.5 billion from Rs 444 billion recorded during the same period of last year.
During the first seven months the overall budget deficit expanded 35.3 per cent to Rs 974.8 billion from Rs 720.6 billion a year ago.
To fund its expenditure, the Government, during the first eight months, has borrowed Rs 1,067 billion from domestic sources while managing to settle Rs 92.3 billion it had borrowed earlier from foreign sources.