Question NW2918 to the Minister of Finance
04 October 2023 - NW2918
Manyi, Mr M to ask the Minister of Finance
Whether the Government has run out of money; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
Government is working to manage public finances in a prudent and sustainable manner. This includes appropriately responding to the materialization of risks, include unforeseen economic and financial conditions. To be clear, the Government has not run out of money. Government publishes the "Statement of the National Government’s Revenue, Expenditure, and Borrowing" monthly, available on the National Treasury website. This statement provides detailed information into government revenue collections, expenditure and borrowing.
Revenue collections for the first four months of 2023/24 have performed below expectations, primarily due to under-collections in corporate income tax and higher VAT refunds. Therefore, the main budget deficit for the first four months of 2023/24 is higher than expected.
Compared to the 2023 Budget, the economic and revenue outlook has deteriorated, and tighter financial conditions have constrained government’s borrowing programme and led to higher borrowing costs. Government remains committed to prudent fiscal management and addressing these challenges to ensure the financial stability of the nation.