By Ragan M. Conteh

The Minister of Finance Fantamadi Bangura has informed Sierra Leoneans during the budget presentation in Parliament that the total domestic revenue collected during January to June 2024 amounted to NLe7.5 billion (4.5 percent of GDP), exceeding the target by NLe386.4 million.

He said the income taxes amounted to NLe2.7 billion; goods and services tax amounted to NLe1.2 billion; customs and excise duties equalled to  NLe1.7 billion, and mining royalties and licenses amounted to NLe567.6 million.

According to Minister Bangura, the improved performance in revenue collection is attributed to dividend payments, made possible by continued implementation of the Finance Acts of 2023 and 2024.

This is backed up by robust implementation of revenue administration measures, including strengthening of compliance.

He stated that domestic revenues are projected to amount to NLe14.7 billion (8.9 percent of GDP) in 2024.

He said the total grants received from development partners amounted to NLe1.3 billion, comprising wholly project grants.

He maintained that the total expenditure and net lending for the first half of 2024 amounted to NLe11.8 billion (7.2 percent of GDP), compared to the original budget of NLe11.3 billion.

Bangura went on to reveal that recurrent expenditure amounted to NLe8.9 billion and a ( 5.4 percent of GDP) causing a fall below end of June, with a targeted amount of NLe379.0 million, despite the overruns on subsidies and transfers.

He said the overspending on subsidies and transfers were driven mainly higher than budget transfers to EDSA done to facilitate payment of arrears to Independent Power Producers (IPPs).

He said wages and salaries and interest payments were lower than their respective targeted amounts.

The Minister underscored that capital expenditure and net lending for the first half of 2024 amounted to NLe2.9 billion (1.8 percent of GDP), which was above the targeted amount by NLe141.0 million higher than the expected disbursement of project loans and grants.

He went on to say that the domestic-funded capital expenditure amounted to NLe1.1 billion (0.6 percent of GDP), about NLe37.2 million below the targeted amount.

He said the total expenditure and net lending are projected to amount to NLe26.6 billion (16.2 percent of GDP) for the whole of 2024.

He highlighted that the overall budget deficit, including grants, narrowed to 1.8 percent of GDP in the first half of 2024, and was broadly on target basis.

The Minister emphasized that the domestic primary deficit is estimated at 0.3 percent of GDP, adding that the deficit was financed mainly by borrowing from the domestic banking system.