Government Maintains Budget Surplus Despite $123M Surge in Debt Repayment

The government has managed to maintain a budget surplus in the first half of the year despite a significant increase in debt repayments, according to the latest Weekly Fiscal Development Report from the Ministry of Finance and Planning.

As of June 12, debt repayments totaled USD 194.6 million — a sharp rise of USD 123 million compared to the USD 71.3 million paid during the same period last year.

This increase comes amid continued austerity measures that have successfully reduced overall government expenditure. The State has spent USD 1.3 billion so far this year, an 8.7% decrease from the USD 1.46 billion recorded in the same timeframe last year.

On the revenue side, improvements were also recorded. The government collected USD 1.1 billion in revenue and grants, marking a six percent increase from the USD 1 billion received during the same period in 2024.

These combined efforts in fiscal tightening and revenue mobilization have led to a budget surplus of USD 84 million as of mid-June.

Analysts view this as a sign of fiscal discipline amidst growing external repayment obligations, and a step towards strengthening the country’s macroeconomic stability.