The Coalition Government concluded the 2023-2024 financial year with a net deficit of $443.6 million, significantly lower than the $639.1 million predicted in the budget announced in June 2023. The Ministry of Finance highlighted that this deficit is also notably less than in the past two financial years.
According to the Government’s Fiscal Performance report for FY2023-2024, total government revenue reached $3.6 billion, while total expenditure was $4 billion. At the end of July 2024, government debt stood at $10.3 billion, a decrease when compared to 82 percent of GDP at the end of July 2023 and 90.6 percent at the end of July 2022.
Total revenue for FY2023-2024 exceeded the revised forecast by $68.3 million, or 1.9 percent, thanks to higher-than-expected revenue collections, both from taxes and non-tax sources. When compared to the previous financial year (FY2022-2023), total revenue collection showed a remarkable increase of $896.1 million, or 32.6 percent.
Tax revenues alone reached $3.1 billion for FY2023-2024, surpassing revised expectations by $60.9 million, or 2.0 percent, and showing a jump of $811.8 million, or 35.5 percent, compared to FY2022-2023. The strong performance in tax collections can be attributed to adjustments in key taxes like VAT, corporate tax, departure tax, and customs duties, as well as robust growth in vital economic sectors such as tourism and other resource-based industries.
This report reflects a positive outlook for the government’s financial management and the economy, pointing to effective strategies implemented to enhance revenue generation and reduce deficit levels. With ongoing improvements in key sectors, there is optimism for continued economic stability moving forward.
In summary, the Coalition Government’s conclusion of the 2023-2024 financial year with a lower net deficit and an increase in revenue bodes well for future economic progress and sustainability.
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