Govt collects Shs6.9 trillion between July and November

A report by Ministry of Finance indicates that domestic revenue collections for the period between July and November amounted to Shs6.931 trillion, which represented a growth of 0.3 per cent compared to the same period last year. 

The report, which analyses monthly performance of the economy, indicates that during November revenue collections stood at Shs1.4 trillion. 

However, this was a shortfall of Shs38.93b against a target of Shs1.44 trillion as approved in the 2020/21 budget. 

Government, the report indicates, had planned to spend Shs2.67 trillion in November but only spent Shs2.45 trillion, which was lower, resulting into improved budget performance of 91.9 per cent. 

The performance, the report indicated, was majorly attributed to lower than planned spending under external development as preliminary data shows that only Shs34.62b (4.9 per cent) of the planned Shs707.44b was spent during November.  

Expenditure on recurrent items performed above target by Shs296.83b, mainly due to performance in non-wage recurrent expenditures. 

This was mainly a result of forwarded expenditure obligations that had been pushed to November from October. 

During the period, the report indicates, most of the expenditure for non-wage recurrent items, which stood at Shs127b was spent by the Electoral Commission, amid intensifying preparations for the 2021 general elections due on January 14. 

At least Shs283b was released in the second quarter to clear domestic arrears.  

The performance of the economy report for the month ended November, also indicates that government fiscal operations resulted in an overall fiscal deficit of Shs1.035 trillion, which was lower than the planned Shs1.102 trillion. 

The lower than planned deficit, the report noted, was majorly on account of lower expenditure on externally financed projects than what had been anticipated during November. 

“This lower spending more than offset the widening effect of revenue shortfalls on the fiscal deficit during the month,” said the report. 

Due to persistent fiscal deficit, government issues Treasury Bills and Bonds to finance fiscal operations. 

The report indicates that during November, Shs1.360 trillion was raised from sale of government securities. 

At least Shs622.42b was raise from three auctions while Shs737.59b was raised from a private placement.