The government has maintained its commitment to the fiscal reform measures by keeping State expenditure down by 21.3 percent by the end of April, the Ministry of Finance and Planning figures have shown.
The Ministry, in its 'Weekly Fiscal Developments' report, revealed that total State revenue had reached USD 875.5 million by 1 May with total expenditure reported at USD 778.2 million.
Of the total expenditure estimated in the approved budget for this year, the government had spent just 24.3 percent by the end of the first four months. The Ministry said total government expenditure has declined by 21.3 percent compared to the same period last year as the government's efforts to strengthen fiscal policy have been implemented during the year.
Amid the government's plan to prioritise the implementation of Public Sector Investment Programmes (PSIP), capital expenditure has decreased by 75.8 percent compared to the same period last year. Along with other cost-cutting efforts, transportation costs fell 21.8 percent and operating costs fell by 8.6 percent, while recurrent expenditure is down by 3.3 percent, the Ministry said.
However, the Ministry noted that the expenditure on wages and pension increased by 7.5 percent compared to the same period last year due to the pay hike of security forces personnel as part of pay-harmonisation initiative by the previous government.
Tax revenue accounted for 78 percent of total revenue, despite a decline compared to the same period last year. The main reason behind the decline is down to some banks having paid some of the bank profit tax due this year in advance last year. However, with the growth of the tourism sector and the recent tax hikes, the State revenue from taxes related to tourism has registered an increase.
According to the figures, non-tax revenue so far this year, increased 32.3 percent over the same period last year. Resort land rentals accounted for 20.1 percent of the revenue, the Ministry said.
The government has secured 34 percent of the total revenue and grants earmarked in the budget approved by the Parliament in the first four months of this year.