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We have now seen the first set of data on the government’s fiscal operations for Q1 2026, and the numbers are encouraging. Total revenue improved from 3.1% of GDP in the same period last year to 3.6%, while tax revenue increased from 2.6% to 3%.
Expenditure also remained well contained. Total expenditure relative to GDP declined from 4.1% of GDP in Q1 2025 to 3.9% in Q1 2026, with capital expenditure recording a marginal increase.
As a result of higher revenues and reduced spending, the primary balance on a commitment basis improved from 0.3% of GDP to 1.2%. The overall fiscal balance also improved from a deficit of 1% of GDP to a surplus of 0.1%. The fiscal discipline continues.
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