GOJ budget

GOJ revenues $26B ahead of 2015

Minister of Finance Audley Shaw pulling in revenues ahead of target.

Revenues for Government of Jamaica fiscal operations to the end of November 2016 are $26 billion ahead of the similar period in 2015.
For the current fiscal year revenues are $13.8 billion ahead of forecast with nearly $5 billion of the surplus coming in November. Intake for the 8 months to November, came in at $304 billion compared with forecast of $290 billion. In May, Minister of Finance announced tax increases of just less than $14 billion that would mostly take full effect at the start of June, with some from mid-May. Revenues from the new measures to November, would be approximately $10 billion with $4 billion to be collected for the other 4 months of the fiscal year.
While revenues are ahead of forecast expenditure are lower than projected. Total expenditure are running $10.5 billion below target to November, of this amount capital expenditure is running $8 below target. Wages are $3.8 billion short of budget while interest cost is above target by $900 million.
Overall operations incurred a deficit of $11 billion compared with projection of a deficit of $26.6 billion leading to the primary surplus ending $25 billion better that forecast at $$63.6 billion.

Shaw’s tax-take jumps sharply

Minister of Finance Audley Shaw is raking in a big up tick in revenues to August ahead of forecast.

Excluding divestment proceeds of nearly $15 billion government revenues from taxes, fees and grants are ahead of budget by $13 billion to August this year and are ahead of the same period in 2015, by 18 percent or $20 billion.
The big increase over 2015, includes very little new taxes imposed in the budget presentation in May, this year. The increase over 2016 fiscal year annualises out at $48 billion and $60 billion when the new taxes are included. Compared to budget, revenues are running at $31 billion ahead of forecast on an annualised basis.
It means that Minister Shaw has fully funded the revenues given up by increasing the PAYE tax threshold, well ahead of the year-end and just around the time the reduced PAYE taxation takes effect to affect tax revenues with August being the first month that the reduced payment would be effected. PAYE enjoyed inflows of $1.9 billion more than planned, bringing in $29 billion to August. In 2015 for the same period, a total of $28.45 was generated from this item.

Collector of Taxes office, Constant Spring, Kingston.

While revenues climbed sharply, expenditure so far is well below forecast by $13.8 billion. Employees’ compensation is down by $2.7 billion, interest cost shaved $2.5 billion off forecast, capital spend so far, is under spent by $7 billion and other expenses are down by $2.5 billion. The net effect higher revenues and reduced cost is a reduction of the fiscal deficit that was projected at $46.2 billion and ended at $19.5 billion, $26.7 billion less than planned. The primary surplus is running well ahead of plan with an out turn of $41.65 billion up from $17.5 billion budgeted.