Jamaica Government revenues surge

February 2, 2018 by

Collector of Taxes Constant Spring Road.

Revenues and grants surged $3 billion above forecast, in December to bring the surplus over budget, to just $15.7 billion or 4.2 percent more than forecast.
Not only were revenues more positive than planned but recurrent expenditure came in 2.4 percent or $9.4 billion lower than was budgeted, ensuring that the government operated a fiscal surplus of $14 billion for the year to December versus a planned deficit of $11 billion.
The surplus would have been even greater had it not been for the fact that in December tax collection on interest had more taxes refunded that exceeded inflows, resulting in net withholding tax being negative $1.65 billion, which led to the collection for withholding tax revenues coming up short of forecast by $4.9 billion.
The critical primary surplus came in at $23 billion ahead of target of $75 billion.
Spending was cut on wages and related cost by $4.2 billion, interest cost fell $2.7 billion to end at $95.2 billion and other cost was lower by $3.4 billion.
Corporation taxes with surplus of intake of $6.7 billion is 26.4 percent ahead of target and is the biggest contributor to the surplus intake of revenues followed by Special Consumption Tax with $4.8 billion and General Consumption Tax with $5 billion.

Filed Under: Economy Tagged With: ,

GOJ revenues $26B ahead of 2015

January 3, 2017 by

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.

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GOJ in black with $6b collection

April 4, 2016 by

Jamaica's Ministry of Finance newest office building

Jamaica’s Ministry of Finance newest office building

Government of Jamaica collected $6 billion in the category divestments/other that was not a budgeted item, resulting in surplus of $4.5 billion in February. The big one item intake lowered the fiscal deficit to $32.5 billion for the 11 months to February versus $38.5 budgeted.
The Primary surplus ended at $3.5 billion below budget at $80 billion down from $83.5 originally planned, but the difference may be accounted for by the reduction in the target agreed by the IMF.
Elsewhere a $3 billion increase on income and profit tax above budget to February this year, helped the government to meet the deficit target set for the elven months of the fiscal year that ends in March. While the income and profits tax were ahead of target, taxes on production and consumption and on imports delivered $1.5 billion less than targeted and bauxite levy was down by $2.4 billion, no doubt caught up in the dispute and bankruptcy proceedings with Miranda Bauxite Company. Grants were also off by $3 billion from the amount budgeted.
Shaw potoThe capital budgeted expenditure that is usually underspent in past years has been fully used up to the end of February but the government incurred less on debt servicing with lower interest cost of $3 billion for the elven months period.
The month with the largest inflows of funds, March is yet to be fully compiled and not yet released. Those numbers will be important for the government going into the new fiscal year, as it would indicate what is the likely capacity for increased spending, for the year ahead. What is known is that interest cost should fall in the year as Treasury bill rates to which a large portion of the national debt is tied have been declining and this should lead to lower cost in this area.

Filed Under: Economy, Feature Stories Tagged With: ,

Government capital spend jumps $3.7b

February 1, 2016 by

Peter Phillips - Minister of Finance

Peter Phillips – Minister of Finance

Government had budgeted to spend $1.6 billion in December but doled out $5.3 billion instead, bringing the full nine months capital spend to $26 billion, in line with budget. The increased spend in December wiped out the underspending of $4 billion in this line item up to November.
Tax revenues continue to be on a positive path, with $6.6 billion over budget but grants are below by $3.1 billion resulting in revenues surplus of $2.5 billion. Government over spent on wages in the tune of $2.3 billion taking the total spend to $126.6 billion but interest cost continues to be lower than forecast by almost $5 billion at $91 billion. Spending on other expenses was below forecast by $3 billion. The overall deficit was in line with forecast, at $14.7 billion and the primary surplus was nearly a billion more than planned at $66 billion.

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GOJ rakes in taxes hikes capital spend

December 2, 2015 by

MOFstrong>Grants expected by government was off by $3 billion to October this year but a $6.7 billion jump in tax collection more than made up for shortfall and helped deliver a budget beating performance by $3 billion.
The positives on the revenue front helped to create a smaller deficit than planned by $14 million, an improvement of 44 percent.
With the fiscal year unwinding and the revenue gains, plus cost reduction elsewhere, the Government cut the under spending on the capital front from $6.5 billion at the end of September to $3.5 billion at the end of October. Interest savings keeps on climbing and now stands at $4.6 billion up from $3.4 billion at the end of September and could well end up around $10 billion by March next year. Wages that was underspent by $3.9 billion is down to just $1.6 billion below budget.
At the end of October the fiscal was deficit was $18 billion and the primary surplus $53.77 billion versus $44.3 billion planned.

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GOJ rakes in $5b more tax revenues

November 3, 2015 by

MOFGovernment of Jamaica raked in 2.6 percent more tax revenues amounting to $4.9 billion over the $190 billion budgeted to reach $195 billion. Grants fell $3 billion short of budget of $6 billion, and non tax revenues by $800 million resulting in nearly half a billion excess revenue over budget, for the nine months to September.
At the end of the period the fiscal deficit projected, was cut in half, with a deficit of $14 billion. The primary surplus measured in at $51 billion some $11 billion better than planned.
The improved revenues flows came mainly from corporate profit tax of $1.9 billion, SCT on local goods $1 billion, tax on interest $2.6 billion, GCT and SCT on imports of $2 billion. PAYE was off by $474 million, telephone tax $400 million, custom duty $800 million and bauxite levy $500 million.
On the expenditure side, recurrent payments are down by $7.3 billion fueled mainly by $3.4 billion reduction in interest payments and $3.9 million in wages. Capital expenditure is under spent by $6.5 billion.

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