State expenditures increased by the end of June following a review of the government’s revenue and spending during the first six months of the year, according to a newly released fiscal report. The state accrued USD 1.45 billion in revenue, an increase of USD 129.70 million compared to the same timeframe last year. Outlays climbed to USD 1.51 billion from USD 1.25 billion, pushing the budget into a USD 63.29 million deficit, statistics released by the Ministry of Finance And Public Enterprises show.
Two primary factors drove this budgetary shortfall, according to the report. A spike in subsidies to control market prices of oil and commodities, an economic fallout from the war in the Middle East, necessitated increased spending. Outlays for these subsidies soared 92 per cent, from USD 90.79 million to USD 181.58 million by the close of June. Recurrent spending on state salaries escalated from USD 466.93 million to USD 505.84 million, the result of a pay harmonisation initiative.
Tax collections reached USD 1.12 billion, up from USD 985.73 million. Corporate income tax garnered USD 110.25 million, a 6.2 per cent increase of USD 6.34 million over the same period in 2025. Foreign grant assistance reached USD 434.2 million, surpassing the USD 373.6 million target by USD 60.6 million. The ministry maintained that revenue remains sufficient to cover general operating costs, recording a primary surplus of USD 110.25 million, indicating the state can meet general expenditures excluding debt repayments.