When we add Government’s contractual obligations to its current and past employees, that is wages and salaries, social security contributions, pensions and gratuities, another 72 per cent of revenues are used up. Together, the contractual obligations of Government consume over 120 per cent of total domestic revenues.
Therefore when the Finance Minister presented his budget to Parliament, he had in effect, already exceeded his revenues by 20 per cent. 11. So what happens to the other operations of Government, including the administrative function and capital spending? In effect, these are made possible by foreign grants and domestic borrowing.