The Jamaican government’s fiscal deficit projected at $28.78 billion is running below target at $19.55 billion, a savings of $9.2 billion up to October this year. The projection for the full fiscal year is deficit of $8 billion. The improved position is mainly due to a near $15 billion cut in payments partially offset by a $5.5 billion reduction in revenues.
Tax revenues were off by $6.7 billion and non-tax revenues were up by $1.3 billion. Major revenue shortfall came from PAYE $2.75 billion, tax on interest of $1.2 billion and custom duties, GCT and Special Consumption tax on international trade of $5.2 billion. There was an improvement in travel tax of $2.4 billion.
Interest cost was down by $5.4 billion and capital expenditure by $6.2 billion and there was a $2 billion savings on salaries and wages.
The deficit in October is $9.4 billion, some $2.3 billion better than the amount budgeted for, and compared to a surplus in September of $7.66 billion. Revenues in October was $1.5 billion short of projections.
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