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, this deficit marks a notable decrease compared to the previous two years.
Total government revenue for FY2023-2024 stood at $3.6 billion, against total expenditures of $4 billion. Government debt was reported at $10.3 billion at the end of July 2024, representing a decrease from 82.0 percent of GDP in July 2023 and 90.6 percent in July 2022.
The ministry highlighted that total revenue for the financial year exceeded revised forecasts by $68.3 million or 1.9 percent, driven by unexpectedly strong collections from both tax and non-tax sources. Compared to the last financial year (FY2022-2023), revenue collections increased by an impressive $896.1 million or 32.6 percent.
Tax revenues reached $3.1 billion for FY2023-2024, surpassing revised predictions by $60.9 million or 2.0 percent and demonstrating a robust increase of $811.8 million or 35.5 percent over FY2022-2023. The surge in tax collection is attributed to enhancements in key taxes like VAT, corporate tax, departure tax, as well as improved performance in crucial economic sectors including tourism and resource-based industries.
This positive fiscal performance demonstrates effective fiscal management and the potential for sustained economic recovery, providing a foundation for future growth and development. The government’s ability to exceed revenue expectations indicates a resilient economy, which can inspire confidence among investors and citizens alike.
In summary, the recent fiscal report reveals a declining deficit and impressive revenue growth, signaling an optimistic outlook for the government’s financial health and the broader economy.
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