July surplus as Govt income jumps

The Peter Phillips lead Ministry of Finance delivered the highest revenue intake for the fiscal year to date with nearly $32 billion in intake bettering the original forecasted figure by $1.7 billion and also delivered the first surplus for the fiscal year.

The deficit for the month, projected at $1.7 billion ended at $330 million in surplus. Year to date, the deficit is $6 billion ahead of target at $5.7 billion flowing from $700 million better revenue intake and $5.4 billion less spending. Wages are down $1.3 billion, interest payments $1.5 billion and capital spend $1.7 billion.

For the month, tax on interest is up $830 million over projections, corporate taxes are up $500 million to $1.1 billion, PAYE underperformed by $550 million with inflows of $5 billion the same as in June, tax on dividends exceeded forecast for the first time this year coming in at $331 million versus $259 forecast. Telephone tax which underperformed in June, stepped up in July with a collection of $1 billion versus forecast of $459 million, only $64 million was collected in June against forecast of $474 million.

Overall taxes on production and consumption delivered $10.9 billion just up on the budgeted amount of $19.4 billion in July. Tax on international trade was slightly better that forecast at $11 billion compared to $10.7 billion budgeted with most of the individual items doing better or close to budget.

July’s expenditure | Payment for wages was down to $7.55 billion versus forecast of $8 billion, interest payment was down from $8.2 billion budgeted to $7.7 billion. Other recurrent expenditure payments were lower than forecast at $7.6 billion actually paid against $8 billion forecast.

So far the government is well on the way to wiping out the deficit this fiscal year if they continue on the present track and don’t expand expenditure dramatically later in the year as the fiscal numbers improve.

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