Abel happy with govt savings

By HELEN TARAWA
THE government earned K14.085 billion last year and spent K16.134 billion, creating a deficit of K2.048 billion – higher than estimated in the supplementary budget.
However, it remained in line with the 2.5 per cent of GDP under its medium-term fiscal strategy.
Deputy Prime Minister and Treasurer Charles Abel pictured,  said the government made progress in terms of commitments to improve savings and deliver a credible budget.
Abel said last year’s final budget outcome reported that total revenue and grants were K14 million, which was K685.5 million above the 2018 supplementary budget estimate.
“Excluding grants, revenue as a share of GDP was 14.9 per cent, an increase over 2017 result of 13.3 per cent and above the targeted 14 per cent set in medium-term revenue strategy (MTRS),” he said. “We are doing our very best to be compliant of the Fiscal Responsibility Act which stipulates a number of requirements in terms of reporting.
“It’s been three months since the 2018 budget and we’ve made some preliminary reports which I tabled in parliament.
“Tax collection continues to improve although we need to maintain focus to ensure domestic revenue receipts are in accordance with the budget estimates.” Abel said total expenditures and net lending was K16 million, up 5.5 per cent on the supplementary budget estimate.
“It resulted in the expenditure-to-GDP ratio rising to 19.6 per cent and increased productive sector and Apec expenditures and earthquake-related spending, the increase also included the employment of
4843 additional frontline workers to support improved service delivery mainly comprising teachers, health workers and disciplined forces.” Abel said long-outstanding commitments were made in relation to paying the state superannuation exit payments, public service salary increase and reducing arrears.
He said without one-off costs incurred last year and with greater control over the payroll budget, the Government expected to meet the MTFS target of reducing the expenditure to GDP ratio to 16 per cent by 2022.