Government’s total revenue collection stood at $964.8 million for the first half of the 2020/2021 financial year while total government expenditure for the same period is $1.5 billion.
Minister for Economy, Aiyaz Sayed-Khaiyum says the total revenue for the first 6 months was above the forecast by $107.3 million.
He says this is attributed to the higher than expected collections from tax and non tax revenue.
Tax was above forecast by $26.7 million while non tax revenue exceeded by $80.6 million.
The higher than budgeted non tax revenue collection is largely attributed to the grants received related to COVID-19 and cyclones. A $78.4 million came in from the EU, Indonesia, Australia and the ADB.
Sayed-Khaiyum says the total revenue forecast for the 2020/2021 financial year is $1.6 billion and the government remains on track to realize the projected revenue collections and most likely surpass the forecast.
He says apart from the hemorrhaging of tax revenue, the Fiji Revenue and Customs Service is playing catch up on VAT refunds while film tax rebates to be paid to production companies are in arrears.
Sayed-Khaiyum has revealed that the government has now reached an agreement with the Survivor series to pay the film rebate over 5 years and we can still get film productions which will generate jobs in the rural areas subject to health protocol measures that need to be put in place.
Total government expenditure was $1.5 billion which was $470.4 million lower than forecast for the first 6 months of the year.
He also says fiscal risks remain for the second half associated with natural disasters, rehabilitation of schools and infrastructure, vaccine acquisitions and risks associated with contingent liabilities.
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