The Ministry of Finance and Planning reported a sharp contraction in the national budgetary deficit, attributing the improvement to rising revenues even as the government advances development projects and enacts pay harmonisation.
In its Weekly Fiscal Developments report, the ministry said total revenue and grants reached USD 2.17 billion by 20 November, a 9.5 percent increase from the previous year. The gain was driven by a 12.0 percent rise in Goods and Services Tax receipts, underscoring the strength of domestic revenue mobilisation.
Government expenditure declined by 12.6 percent to USD 2.28 billion, producing an 84 percent reduction in the overall deficit, which now stands at USD 97.34 million. Recurrent spending edged higher to USD 1.95 billion, reflecting a 6.6 percent increase in wages and pensions, while capital expenditure fell steeply by 53.7 percent. Officials said the retrenchment in capital outlays reflects a strategy to prioritise and reorganise the execution of major infrastructure projects.
Despite fiscal adjustments following the 1 November implementation of pay harmonisation, the government recorded a primary surplus of USD 168.64 million during the reporting period. By late November, the state had achieved roughly 84 percent of its projected revenue and grants for the fiscal year, marking significant progress toward its budgetary objectives.