By Taonga Sabola:
Central government budgetary operations posted a K54.5 billion deficit in November 2018 as expenditures outweighed revenue, the Reserve Bank of Malawi (RBM) has said.
The deficit was almost twice the K27.6 billion shortfall recorded in October 2018.
The November 2018 deficit is K14.2 billion higher than the K40.3 billion recorded in November 2017.
In its November 2018 Monthly Economic Report released on Monday, RBM says during the month, total government revenues increased by 3.5 percent to K92.7 billion, after they declined by 22.2 percent in the previous month.
Domestic revenues amounted to K85.6 billion while foreign receipts totalled K7.1 billion ($9.6 million).
“The major grants received in the month under review were funds from International Development Association, a total of K4.5 billion ($6.1 million) split into K2.7 billion ($3.7 million) for the Ministry of Finance, and K1.8 billion ($2.4 million) funds towards the Malawi Drought Recovery Programme.
“The remaining K2.6 billion ($3.5 million) were grants towards various government projects. Total foreign inflows therefore rose marginally by a K1.8 million and remained at the October 2018 total of K7.1 billion,” RBM says.
The central bank adds that all components of domestic revenue increased during the reviewed period.
“Tax collections increased by K683.1 million to K80.4 billion, departmental receipts increased by K2.1 billion to K4.1 billion and other uncategorised government receipts increased by K248.7 million to K1.1 billion,” reads the report in part.
On expenditure, RBM says total government expenses in November 2018 increased by 25.6 percent to K147.2 billion.
“This followed another increase in expenditures of 5.6 percent recorded in October 2018. The increase in total expenditures recorded in the reviewed month was mainly attributed to the increase in recurrent expenditures by K29.3 billion to K129.5 billion.
“Development expenditures recorded a marginal increase of K0.8 billion to K17.8 billion in the month under review. In November 2017, total government expenditure increased by 18.2 percent to K120.4 billion,” RBM says.