THE government has recorded a deficit of $196 million in November following a $97 million deficit the previous month.
That’s according to the Central Bank of Solomon Islands (CBSI) November report.
The report stated this outcome mirrored an upsurge in the expenditure by 32% to $426 million and a 2% increase in total revenue to $230 million.
“Meanwhile, the central government’s outstanding debt stock fell slightly by 0.04% to $1,365 million in November.
“An increase in tax revenue by 4% to $198 million underlined the increase in total revenue. This mainly reflected increases in company and personal taxes, and goods and services taxes,” the report stated.
The report also stated that on the other hand, tax receipts on international trade and transactions weakened this quarter.
Meanwhile, non-tax revenue collections eased to $32 million from $35 million in October.
On donor receipts, CBSI stated that only $0.38 million was recorded in November. The surge in total expenditure came from a 2% growth in recurrent expense to $293 million and a 32% expansion in capital spending to $133 million.
It added that the higher recurrent expense was mainly driven by goods and services which expanded from $101 million to $196 million in October.
Conversely, payroll, the second-largest recurrent expense item, contracted to $81 million in November from $127 million in the preceding month.
On capital spending, the report stated that the increase was related to fixed assets, which surged to $124 million from $35 million in October.
“The marginal decline in the outstanding debt stock was attributed to a fall in the external debt stock from $973 million in October to $972 million.
“This was due largely to exchange rate movements. Meanwhile, the domestic debt stock remained at $393 million, broadly the same as in October,” the report stated.
Around $5 million in debt servicing was made in November, of which $2 million was on interest charges and the rest on principal repayment.
By ANDREW FANASIA