Pension, wages and salaries increased by 22.32 percent to Le270.58 billion during the review period in May 2021, but in April, Wages and Salaries fell by 58.60 percent to Le221.20 billion, according to data from the Bank of Sierra Leone.

Government expenditure contracted by 31.18 percent to Le583.54 billion in May 2021, and was 23.06 percent lower than the ceiling of Le758.48 billion. The Research Department of the Bank attributed the contraction in government expenditure to the decline in other expenditure and debt services payment by 53.17 percent and 37.11 percent to Le236.90 billion and Le76.06 billion in May 2021, respectively.

On the revenue front, Government revenue contracted by 33.87 percent to Le407.69 billion in May 2021 and was 28.65 percent lower than the budgeted target of Le571.36 billion, mainly due to a decrease in domestic revenue and external budgetary support.

Domestic revenue dropped to Le407.69 billion in May 2021 from Le491.47 billion in April 2021, due to a contraction in all its major tax components. Receipts from customs and excise taxes decreased by 12.56 percent to Le61.12 billion, income tax collection fell by 11.93 percent to 130.62 billion, receipts from non-tax revenue decreased by 28.82 percent to Le126.65 billion. Goods and Services tax contracted by 6.32 percent to Le89.29 billion.

Government budgetary operations on cash flow basis resulted in a lower fiscal deficit of Le175.85 billion in May 2021, compared to a deficit of Le231.46 billion in April 2021. This outturn was due to a large decrease in expenditure over the decrease in revenue.

There was no external grant during the review month. The overall deficit of Le175.85 billion was financed exclusively from domestic sources.