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Govt. spent $376.4B more than it earned last year – Finance Minister reveals
Kaieteur News- Finance Minister, Dr. Ashni Singh, has disclosed that the government spent $1.2 trillion last year, $376.4 billion more than it earned.
The Minister said, “The Central Government recorded a deficit of $376.4 billion or 7.3 per cent of GDP, at the end of the fiscal year. Overall, Central Government expenditure stood at $1.2 trillion, exceeding the $784.6 billion revenue earnings.”
In August 2024, the Committee of Supply approved two financial papers, totalling over $40 billion in supplementary funding. In November 2024, the Committee of Supply approved Financial Papers Numbers 3 and 4 for 2024, which caters for $84.5 billion in Supplementary Funding. The Supplementary Funding increased the government’s budget to $1.271 trillion.
Minister of Finance, Dr Ashni Singh
“Central Government’s expenditure totalled $1.2 trillion, of which non-interest expenditure accounted for $500.7 billion, reflecting growth of 35.3% above 2023,” Dr Singh explained. According to the Minister, this rise was primarily driven by employment costs of $122.6 billion, resulting from a 10% salary increase and approved adjustments for public servants.
Minister Singh explained that total Central Government revenue for 2024, excluding inflows from the Guyana REDD+ Investment Fund (GRIF), the Natural Resource Fund (NRF), and carbon credits, reached $437.7 billion. This represented a 14.5% increase or $55.6 billion from the previous year. Revenue collections by the Guyana Revenue Authority (GRA) stood at $420.2 billion, while non-tax revenue amounted to $17.5 billion.
At the end of 2024, internal revenue collections reached $267 billion. It was disclosed that private sector corporation tax, withholding tax and personal income taxes, together accounted for $35.7 billion of the growth in this category of revenues.
The Minister noted, “The private sector corporation tax category recorded strong performance with growth of $16.3 billion, driven by increased payments made by companies in the oil and gas sector. The growth in withholding tax amounting to $10 billion was also driven by increased collections from the oil and gas sector, as well as the non-oil private sector, along with increased current and arrear payments.”
Customs and trade tax collections amounted to $40.4 billion, which is $5.5 billion above the 2023 levels. This was primarily due to a $4.1 billion rise in import duties, driven by higher importation of motor vehicles, building materials, and other goods.
Meanwhile, value-added and excise tax collections totalled $112.8 billion, reflecting a $9 billion increase. “Domestic supply of goods recorded increased revenues of $6 billion owing to increased payments from the private sector, particularly the wholesale and retail trade, repair of motor vehicles, construction and information and communication sectors,” the Minister said.
He added that imports of goods and services contributed to growth of $2.1 billion, due to increased VAT collections from the importation of several standard rated commodities during the review period. Excise tax collections amounted to $32.6 billion, an increase of $818.9 million.
Last year, non-tax revenue collections increased by $2 billion mainly due to improved collections of rent, royalties and fees, fines and other charges.
(Govt. spent $376.4B more than it earned last year – Finance Minister reveals)
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