The Central Government operations for March 2022 quarter recorded an overall deficit (Net Lending/Net Borrowing) of $34.3 million tala, following a deficit of $1.6 million recorded in the December quarter of 2021.
This is outlined in the Government Finance statistics for the March 2022 quarter.
The deficit is attributed mainly to a reduction in revenue collection, which dropped by 29.7 percent and 16.4 percent when compared to the March and December quarters of 2021, which more than offset the decline of 12.7 percent in total expenditure.
Net Operating Balance also recorded a deficit of $27.2 million, for the first time since the September quarter of 2017, with Government expenditure commitments continuing, despite the loss in revenues.
The result is indicative of the unavoidable impact of the country’s SOE restrictions and lockdown on the economy especially the activities of the private sector business communities which can be seen in tax collection for March 2022.
The overall deficit with the Net Acquisition of financial assets and liabilities resulted in a drawdown of $69.2 million of government resources from the banking system in the March 2022 quarter.
Total Revenue collection for the period stood at $136.8 million and went down by 29.7 percent and 16.4 percent when compared to the December and March quarters of 2021 respectively.
Tax revenue amounted to $118.2 million or 86.3 percent of total revenue for the reviewed period. Other Revenue
stood at $18.7 million or 13.7 percent of total revenue.
Other revenue receipts were $18.7 million.
Of this amount, $11.6 million or 62.3 percent was from sales of goods and services, and $7.1 million or 37.7 percent was Property Income. Other Revenue recorded for the quarter under review went down by $5.9 million or 24.0 percent when compared to the March 2021 quarter.
It also went down by $3.9 million or 17.1 percent compared to the December 2021 quarter.