Govt.’s tax revenue effort gathers momentum in 1H

• Collects Rs. 35 b more in 2Q as against 1Q; YoY at Rs. 55 b
• Budget deficit down by 52% in 1H from a year ago

During the first half of 2024, Government revenue and grants increased to Rs. 1.86 trillion compared to Rs. 1.31 trillion in the corresponding period of 2023.

Tax revenue in first half of 2024 was Rs. 1.7 trillion, as against Rs. 1.2 trillion a year ago.

Total expenditure and net lending decreased to Rs. 2.46 trillion from January to June 2024 compared to Rs. 2.56 trillion in the corresponding period of 2023.

Recurrent expenditure was Rs. 2.21 trillion in 1H of 2024, marginally down from Rs. 2.32 trillion a year ago.

Primary Balance in 1H of 2024 was Rs. 173 billion, as against a negative figure of Rs. 895 billion a year ago.

During the first half of 2024, the overall budget deficit decreased to Rs. 598.7 billion compared to Rs. 1.24 trillion recorded in the corresponding period of 2023.

In 2023, revenue and grants crossed the Rs. 3 trillion mark, as against Rs. 2 trillion in 2022. Tax revenue grew to Rs. 2.7 trillion from Rs. 1.7 trillion in 2022.

Expenditure and lending (minus repayments) in 2023 was Rs. 5.3 trillion in comparison to Rs. 4.4 trillion in the previous year. Recurrent expenditure was Rs. 4.7 trillion, up from Rs. 3.5 trillion. Primary Balance was a positive Rs. 173 billion in 2023 as against a negative figure of Rs. 895 billion in 2022.

During the period from January to June 2024, net domestic financing decreased to Rs. 515.8 billion compared to Rs. 1.21 trillion in the corresponding period of 2023. Net foreign financing increased to Rs. 82.9 billion during the first half of 2024 compared to the Rs. 24 billion a year ago.

During 2023, net domestic financing decreased to Rs. 1.78 trillion from Rs. 2.03 trillion in 2022. Net foreign financing amounted to Rs. 494.6 billion, as against Rs. 424.82 billion in 2022.

In 2023, the overall budget deficit decreased to Rs. 2.28 trillion from Rs. 2.46 trillion in 2022.