Despite sharply rising inflation during the first four months of the year, government has achieved higher than expected revenue and lower than projected expenditure in the first quarter of the year. Total revenue for the first quarter amounted to ?2,698 billion exceeding the budget target by some ?90.0 billion.

Conversely, total expenditure was less than the budget target and that resulted in a domestic primary balance surplus of 190.8 billion compared to a budgeted deficit target of ?421.0 billion for the quarter.

Consequently, net domestic financing of the budget amounted to ?369.0 billion, less than half of the budget target of ?823.0 billion.

Government’s improved fiscal budget performance is a reason to cheer in the face of steep inflation, as year-on-year inflation, measured by a Consumer Price Index hit 30% in April, the fourth straight rise in the first four months of 2003.