KATHERDU, 15 MAY: As the government’s spending exceeds its tax collection, the fiscal imbalance is growing.
As of mid-May of the current fiscal year 2022/23, the government’s spending was Rs 250 billion more than its revenue, according to the Financial Comptroller General’s Office (FCGO). The government spent Rs. 1.047 trillion during this time period, while only Rs. 797 billion in taxes were collected and grants were received.
The FCGO estimates that the government has spent 58.41% of the yearly budget in the last 10 months. A budget of Rs. 1.7093 trillion has been presented by the government for the current fiscal year. Whereas Rs. 1.047 trillion have already been spent.
By mid-May, the government had spent 66.49 percent on current expenses, 33.04 percent on capital projects, and 58.79 percent on fiscal management.
Recurrent expenditures during the current fiscal year have a budget of Rs. 1.183 trillion, of which Rs. 786 billion have been spent as of this writing. Similar to this, barely 125 billion rupees out of the 380 billion rupees earmarked for development in the current fiscal year had been spent after 10 months.
When comparing capital expenditures to budget expenditures at this time, the budget expenditure for financial arrangements is greater. Rs 135 billion has been spent on fiscal management as of mid-May. Principal and interest on government loans make up the majority of expenditures falling under the financial arrangements section.
Government income collection has reached 54.66 percent of the yearly goal as of mid-May. The government has only so far received Rs 756 billion of the Rs 1.403 trillion it hopes to raise for the current fiscal year.
Similar to the previous example, just 8.66 percent of the government’s aim for acquiring foreign grants and subsidies totaling Rs 55.45 billion had been reached by the middle of May, or Rs 4.80 billion.
Comparing the middle of May of this year to the same time this year, the collection of income tax and value-added tax has declined while that of excise duty has climbed.
Up to the middle of May of the current fiscal year, income tax in the amount of Rs 159 billion has been collected. Income tax equivalent to Rs 173 billion was collected over the same time period of the previous fiscal year.
In a similar vein, VAT has been decreased from the previous year. VAT had been collected by mid-May of last year to the tune of Rs 90.68 billion, whilst during the same time period of the current financial year, Rs 88.67 billion had been recovered.
Compared to previous year, excise duty has marginally risen. Excise tax of Rs 84.11 billion had been collected by the middle of May. The excise tax for the same time period last year was Rs 83.88 billion.