Ministry of Finance has revealsed the state spent over USD 340 million beyond the revenue generated in the first six months of 2020.
As per the statistics publicised by the finance ministry, the expenses of the state increased by USD 343 million compared to the revenue received by the state. The weekly fiscal development report of the finance ministry showed the state spent over USD 750 million from January 1 to June 25 while the state received only USD 407 million during the period.
The statistics revealed most of the spending involved recurrent expenses which amounts to 70% of the total expenses of the state. The remaining 30% was spent by the state on capital expenses.
The finance ministry stated the majority of the expenditure during the period was on salaries and wages, and allowances to employees and response efforts of COVID-19. The ministry said notable spendings on capital expenditure include infrastructure assets and investment outlays.
The cumulative revenues and grants for the period as per the statistics amount to USD 411.6 million. The finance ministry noted the most significant amounts were received from Tourism Goods and Services Tax (TGST), Business Profit Tax (BPT) and import duty.