The Government is expected to record a net deficit of around $750.3 million, equivalent to -6.2 per cent of GDP, lower than the budgeted net deficit of -7.4 per cent and -11.9 per cent net deficit for the last financial year.
This is derived from estimated total revenues of 2.6 billion and total expenditures of $3.4 billion – The revised revenue estimates are lower than the original budget, largely due to lower collections from non-tax revenue such as Grants in aid, Reimbursements and Recoveries, and Dividends from Investment as well as lower collections from Customs and Water Resource Tax.
Deputy Prime Minister and Minister for Finance Professor Biman Prasad says tax revenue for the current financial year is expected to be $2.6 billion, lower by $69.8 million (-3.0 per cent) compared to the initial budget as a result of lower-than-expected collections from indirect taxes largely from fiscal duties, excise duty, export duty, water resource tax, and departure tax.
He said while comparing it to the actuals for last year, the estimated revenue for the 2022-2023 financial year is above by $560.3 million.
“In the first 10 months, Government collected $1.9 billion in tax revenues, almost 82.6 per cent of the revised tax revenue estimates – Compared to the same period last financial year, overall tax collections have increased by $544.4 million.”
“Non-tax revenue is estimated at $433.1 million, lower by $184.7 million. This is largely attributed to lower collections from grant in aid, reimbursement and recoveries and interest income. When compared to the actuals from 2021-2022, non-tax revenue at the end of May 2023 is $258.5 million, representing 59.7 per cent of the total non-tax revenue that is expected to be collected by the end of July 2023,” he added.
The Ministry said Government debt is estimated to be around $9.8 billion, or 81.2 per cent of GDP, at the end of July 2023.