The government’s revenue collection for the first quarter of the current fiscal year has reached only 17.49% of its annual target of Rs 1.419 trillion.
Records from the Financial Comptroller General Office (FCGO) indicate that between mid-July and mid-October, the revenue collection totaled Rs 248.26 billion. This amount includes Rs 219.68 billion from tax revenue, Rs 28.57 billion from non-tax revenue, and Rs 4.75 billion from other receipts.
Despite the disappointing figures for this review period, the revenue collected is significantly higher than in the same timeframe last year. According to the FCGO, the government collected only Rs 213.39 billion, or 15.93% of the annual target, in the first quarter of FY 2023/24.
Despite the government’s commitment to significantly boost revenue collection, the first quarterly report reveals a disappointing scenario. The modest increase in revenue has been attributed to the government’s enhanced efforts in revenue collection and a recent uptick in economic activity.
Records from the central bank indicate that private sector lending by banks and financial institutions grew by only 1.4%, reaching Rs 73.39 billion in the first two months of the current fiscal year. Analysts suggest this reflects the private sector’s reluctance to invest in the domestic market.
In contrast to the sluggish revenue collection, public expenditure surged to Rs 329.20 billion, which is 17.7% of the annual target. This figure represents an increase of Rs 49.2 billion compared to the same period last year.
Of the total public expenditure, Rs 229.85 billion was allocated for recurrent spending. During this time, the government allocated just Rs 29.37 billion (8.34%) for development projects, while a substantial Rs 69.97 billion was spent on debt servicing.
However, capital expenditure showed a slight increase this year compared to the same period last year. In the first quarter of the previous fiscal year, capital expenditure was Rs 17.83 billion, or 5.9% of the annual target.
