Sogavare reveals gov’t has $113.7m deficit in past 6 months

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The government expenditure is increasing faster than revenue collections month on month and therefore becomes a critical concern for the Ministry of Finance and Treasury and the ministry has taken measures to manage the expenditure flow says Minister of Finance Manasseh Sogavare.

Sogavare has told Parliament that the government’s fiscal performance over the past six months has showed an overall deficit of $113.7 million, total expenditure of $1,744.5 million is higher than revenue receipts of $1,630.7 million.

Delivering the Supplementary Appropriation Bill 2024 Sogavare said SIG Revenue receipts collected by end of June is at $1,630.7 million, or 49 per cent of the total SIG revenue estimates.

“This is an above collection of $17.2 million or 1 per cent against the six months expected revenue projection of $1,617.5 million,” he said.

• He detailed that the IRD collected $1,049.9 million or 53 per cent collection of the total IRD revenue estimates. This is $109.9 million or 10 per cent above the six months expected revenue estimates of $940 million.

•  Customs collection is $488.5 million or 53 per cent collection of the total customs revenue estimates. This is $26.3 million or 5 per cent over collection against the six months revenue projection of $462.2 million.

•  Other ministries non-tax revenue collection is $92.3 million or 22 per cent collection of the total NTR estimates, which is $118.9million under collection of the total NTR six months, expected estimates of $211.2 million.

•  Total consolidated expenditure is $1,744.5 million or 43 per cent of the total recurrent budget, which includes recurrent expenditure of $1,559.4 million or 43 per cent and development expenditure $184.9 million or 28 per cent. Development spending was slow in the first quarter due to the national general elections.

Sogavare said revenue collection has improved by more than $98 million compared to the same period in 2023, but expenditure is increasing faster than revenue collections month on month and therefore becomes a critical concern for the Ministry of Finance and Treasury and the ministry has taken measures to manage the expenditure flow.

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