The latest Monthly Fiscal Developments from Ministry of Finance confirm that the revenues and grants collected to the state in October 2021 observed a 44.4% growth when compared with the same month in 2020.
Moreover, the ministry attests that this growth is primarily reflective of the increase of a MVR337.5 million in Goods and Services Tax (GST) – which also remains as the strongest revenue stream to the state in generally.
On the other hand, total expenditure observed during the review month saw a increment of 72.0% when compared with the corresponding month in 2020.
As such, capital expenditure observed an increment of 210.1% and recurrent expenditure increased by 34.3% when compared with October 2020. Furthermore, the significant hike in capital expenditure is reflected by MVR1,011.4 million spent towards development of roads, bridges and airports.
Meanwhile, the fiscal balance for the period gives an overall primary deficit of MVR2,500.9 million.
Revenue composition for the review month indicates TGST had contributed 27.7% of the total revenues and Import Duty contributed 15.7%, GGST contributed 10.0% while Withholding Tax and Business Profit Tax contributed 4.2% and 1.3% respectively.
Expenditure composition shows the strongest spending made towards administrative and operational expenses and salaries, wages and pensions with 38.4% and 34.7% respectively, of the state spending concentrated.
Furthermore, the ministry confirms that the total revenue inclusive of grants collected to the state in October stood at MVR1,316.3 million (MVR1.3 billion) out of which MVR1,032.4 million were tax-revenues and MVR257.3 million were non-tax revenues.
On the other hand, total expenditure during the review month stood at MVR3,915.5 million (MVR3.9 billion) out of which MVR2,342.4 million (MVR2.3 billion) were recurrent expenditures and MVR1,474.8 million (MVR1.5 billion) were capital expenditures.