The Coalition Government concluded the financial year 2023-2024 with a net deficit of $443.6 million, significantly less than the $639.1 million projected in the June 2023 budget. According to the Ministry of Finance’s Fiscal Performance report for FY2023-2024, this deficit is also notably lower than the deficits recorded in the prior two years.
The ministry reported that total government revenue for the fiscal year reached $3.6 billion, while total expenditures stood at $4 billion. At the end of July 2024, government debt was recorded at $10,309.2 million, equivalent to 82.0 percent of gross domestic product (GDP) compared to 90.6 percent a year prior.
Notably, the total revenue for FY2023-2024 exceeded the revised forecast by $68.3 million, marking a 1.9 percent increase due to higher-than-expected collections from both tax and non-tax sources. Compared to the previous year (FY2022-2023), total revenue collections rose by $896.1 million, reflecting an impressive growth rate of 32.6 percent.
Tax revenues amounted to $3,096.8 million, surpassing the revised forecast by $60.9 million— a 2.0 percent increase. This represented an impressive increase of $811.8 million, or 35.5 percent, compared to FY2022-2023. The robust tax collections were largely attributed to adjustments in essential taxes, including value-added tax (VAT), corporate tax, departure tax, and various customs duties. Additionally, encouraging performance in vital economic sectors such as tourism and resource extraction played a significant role.
This positive trend in financial performance indicates a promising recovery and a potentially more stable economic outlook for the government, even amidst ongoing challenges. The improvements in tax collection highlight the effectiveness of the recent fiscal policies and stakeholder cooperation in enhancing economic activities.
Overall, the government’s ability to reduce its deficit while increasing revenue presents a hopeful narrative for future budget planning and economic development.
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