Twenty pc budget spent in 4 months with low capital expenditure

The government has spent only 20 per cent of the annual budget target during the first four months of the current fiscal year 2023/24. According to the daily report of the Financial Comptroller General Office under the Ministry of Finance, the government has spent only Rs. 355.63 billion during the review period. This is only 20.31 per cent of the total annual budget allocation.

The government had allocated an annual budget of Rs. 1,751.31 billion for the current fiscal year. Compared to the same period of the last fiscal year, the budget expenditure in the review period was higher.

The government had spent only 19.57 per cent of the annual budget in the first four months of the last fiscal year. Of the total budget expenses, capital expenditure stands only at 9.93 per cent of total allocation in the first four months of the current fiscal year. Of the Rs. 302 billion allocated under capital expenditure, only Rs. 29.98 billion has been spent by November 16, 2023. The rate of capital expenditure is slightly higher during the review period as compared to the same period last year. The capital expenditure stood only 6.91 per cent during the first four months of the last fiscal year. The recurrent expenditure of the government stood at 23.75 per cent (Rs. 271.17 billion) of recurrent expenditure for the current fiscal year.

The government has allocated a budget of Rs. 1,141.78 billion under the heading of recurrent budget for the current fiscal year.

Similarly, the Rs. 54.46 billion was spent under the heading of financing in the first four months of the current fiscal year. That is 17.72 per cent out of the total allocation of Rs. 307.4 billion.  Generally, the amount allocated under the heading of financial arrangements is used to pay the principal and interest of the public debt. In the current fiscal year, more budget was allocated under the heading of financial arrangement than under the heading of capital. Revenue of Rs. 276 billion collected in four months During the review period, the government’s revenue collection in the first four months stood around 20 per cent of the annual target. According to FCGO, the revenue collection of the government stands at Rs. 276.64 billion during the review period which is 19.45 per cent of the annual target (Rs. 1,422.54 billion).

Out of this, tax revenue stood at Rs. 254.3 billion or 19.48 per cent of the target and non-tax revenue stood at Rs. 22.3 billion or 19.08 per cent of the annual target.

Of the total revenue collection target of Rs. 1,422.54 billion, target has been set to raise Rs. 1,305.4 billion tax revenue and Rs. 117.06 billion non-tax revenue in the current fiscal year. The revenue collection has improved during the review period as compared to the same period last fiscal year. Revenue of Rs. 268 billion had been collected during the four months of the last fiscal year. It was 19.11 per cent of the annual target of Rs. 1,403 billion. During the review period of the current fiscal year, the government received only Rs. 2.75 million grant. It is 5.52 per cent of the annual target of the government. The government has set an annual target to receive Rs. 49.94 billion grant in the current fiscal year. Similarly, the other receipts of the government stood at Rs. 16.25 billion during the review period.