Govt sees budget surplus of Tk 11,865cr in Q1

The government saw a budget surplus of Tk 11,865 crore in the first quarter of the current fiscal year (FY) as its spending was lower than its revenue collection.

In the same period of last fiscal year, the government saw a budget deficit of Tk 1,775 crore.

According to a finance ministry report, in the July-September period of FY 2023-24 the government spent Tk 83,650 crore out of its total budget of Tk 7,61,785 crore.

In the same period of FY 2022-23, the spending stood at Tk 82,434 crore out of Tk 6,78,064 crore.

The revised budget of FY 2022-23 was Tk 6,60,508 crore.

On the other hand, in the first quarter of the current fiscal year, revenue collection stood at Tk 95,515 crore whereas it was Tk 80,659 crore in the previous year.

In addition, in the same period the government received Tk 537 crore in foreign grants whereas none in the same period of FY 2022-23.

The government considers foreign grants as revenue.

A finance ministry official said although budget spending usually remains low in the first quarter of a fiscal year, it increases significantly in the following quarters.

However, one reason behind the budget surplus could be the government's austerity measures, said the official.

The official also said except for interest payments, spending in different sectors decreased in comparison to that in the previous fiscal year.

Even the government's spending for subsidies did not rise, he also said.

In the first quarter of FY 2023-24, the interest payments amounted to Tk 21,834 crore, including Tk 2,905 crore against foreign loans.

In the same quarter of FY 2022-23, the interest payment amounted to Tk 18,169 crore, including Tk 1,525 crore against foreign loans.

In case of subsidies, the government spent Tk 8,953 crore in this fiscal year's first quarter, which was Tk 11,179 crore in that of the last fiscal year.

A finance ministry official said the surplus was evident as the revenue collection witnessed a rise.

As a result, the government did not have to borrow, he said.

Instead, the government was able to repay some loans, the official added.

In case of deficit financing, the government repaid Tk 12,675 crore in the first quarter of the current fiscal year.

In the same period of the previous fiscal year, the government's net borrowing stood at Tk 1,638 crore.

Usually, foreign loans are opted for when meeting budgetary deficits as it is low cost.

However, in the current fiscal year, the government managed to repay more than what it had borrowed.

In the first quarter, the government borrowed Tk 1,843 crore but repaid Tk 8,094 crore.