The 2026/2027 budget now requires an adjustment of 2.9 billion dollars, after the government managed to reduce expenditure and increase revenue over the first six months of the fiscal year.
Finance Minister, Davendranath Tancoo on Monday asked Parliament to approve an additional 2.927 billion dollars in supplementary funding for the 2026/2027 fiscal year. Minister Tancoo described the adjustment as a measured and responsible approach. He said sound fiscal management has already resulted in reduced expenditure and increased earnings for the state at the mid-way point of this fiscal year.
“Mr. Speaker, for the period October 1st, 2025, to April 30th, 2026, revenue stood at approximately $30.1 billion against a projection of $28.0 billion. Expenditure stood at approximately $31.8 billion against a projection of $34.5 billion, resulting in an overall fiscal deficit of approximately $1.7 billion.”
The Finance Minister noted that the supplementary expenditure will be financed through a combination of domestic and external borrowing. He added that revenue will also be supported by an expected 16% increase in oil prices and a 5% rise in gas prices.
“The 2026 Budget was predicated on an average oil price of US$73.25 per barrel and natural gas price of US$4.25 per MMBtu. Our estimation for oil and gas prices to the end of the Fiscal Year is US$85.00 per barrel and US$4.50 per MMBtu, respectively. With this and other adjustments we anticipate an increase in total revenue of $381.7 million.”
Minister Tancoo said the overall projected deficit for the fiscal year is expected to be 7 billion dollars. He added that the fiscal adjustments outlined in the mid-year budget review will allow the Government to continue delivering on its commitments to citizens while maintaining fiscal stability.