Diamond surge turns 2021 budget deficit into surplus

Improving numbers: The Finance Ministry had initially projected a P10 billion deficit for 2021/22. The ministry now expects a small surplus PIC: FINANCE MINISTRY
Improving numbers: The Finance Ministry had initially projected a P10 billion deficit for 2021/22. The ministry now expects a small surplus PIC: FINANCE MINISTRY

Ministry of Finance expects the final 2021–2022 budget to reflect a small surplus, as opposed to initial forecasts of a P10.2 billion deficit, due to larger than expected receipts from diamond exports, BusinessWeek has established.

The 2021–2022 final budget outcome is due in August and should it be achieved, the surplus would be the first in the country’s books since the 2016–2017 financial year. In her February budget speech, (Finance) Minister Peggy Serame had projected the deficit for 2021–2022 at P10.2 billion or 5.09 percent of Gross Domestic Product (GDP), following on from another whopping P16.4 billion shortfall in 2020–2021, equivalent to 9.4 percent of that year’s GDP.

The finance ministry's permanent secretary, Wilfred Mandlebe, this week told a parliamentary committee that at the last count, the deficit for 2021–2022 was P185 million, putting the budget on track for a small surplus when the numbers are finalised in the next two months.

Editor's Comment
Shame on the Police!

According to a press statement from the police, unidentified armed men attacked on duty police officers at the station in the early hours of Tuesday.During the attack, the suspects stole 14 riffles, five pistols and an undisclosed number of ammunition.Although unconfirmed, it is alleged that the suspects were just carrying knives and axes, which they used to scare the men and women in uniform before they took them hostage to help themselves to...

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