State revenue has risen by 1.8 percent, driven by higher income from Tourism Goods and Services Tax (T-GST) and airport service charges.
According to the Weekly Fiscal Developments report published by the Ministry of Finance, total revenue and grants have reached Rf 30.879 billion, up from Rf 30.342 billion in the same period last year. The report says the increase was mainly due to tax revenue, which rose 5.8 percent to Rf 23.835 billion.
The biggest gains in tax revenue came from T-GST and from airport service charges and departure tax. Tourism-related T-GST brought in Rf 8.062 billion, while income from airport service charges and departure tax rose 8.2 percent to Rf 1.529 billion. Taxes on business and property, import duty and GST also showed solid growth. Grants received by the state rose 84.7 percent to Rf 0.513 billion.
However, total state expenditure has grown by a much larger margin than revenue. Total spending during the period stood at Rf 35.456 billion, an 18.2 percent increase on the same period last year. Recurrent expenditure rose 18.5 percent to Rf 30.653 billion, with the largest spending going to employee salaries and allowances, as well as subsidies. Spending on subsidies rose 75.1 percent to Rf 4.203 billion, while capital expenditure on development projects increased 15.9 percent to Rf 4.804 billion.
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