GOJ revenues well ahead of budget

Revenue and grants for the government of Jamaica climbed 7 percent ahead of forecast with an increase of $11.6 billion over the budget of $163.8 billion to end at $175.4 billion for the three months to June this year. Expenditure, on the other hand, fell 4.6 percent or $7.6 billion to $165.7 billion.

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Tax revenues brought in $12 billion more than forecast and recurrent expenditure accounted for $7.6 billion of the underspending. Capital Spend was marginally more than the $18 billion budgeted.
Non-Tax revenues amount to $42.8 billion, with $34.5 billion collected in April and would have included the dividend from the Bank of Jamaica.
The government operation ended with a $5 million surplus in June and ended the three month period with a deficit of $1.7 billion, $22.4 billion better than forecast.
International Trade brought in 22 percent more revenues than the budgeted amount for the three months period, with a collection of $47.8 billion versus a forecast of $39 billion. Production and consumption taxes contributed $3.4 billion more to the revenue intake than planned, with an intake of $47.7 billion versus $44.3 budgeted.

Oil prices plunged

Jamaica and the majority of Caribbean nations got some great news on Sunday, with the price of oil plunging 27 percent to just over US$30 per barrel.

Oil prices fell sharply in 2016 as well

Oil traded over $65 per barrel late 2019 but has fallen to the low US$50 recently. The price opened at US$32.87 and traded as low as $30 on Sunday, Jamaica time. The price is back to where it was in early 2016 when it tumbled from just over US$100 per barrel. According to Market Watch, a USA publication, Asian stock markets plunged Monday after global oil prices nosedived on worries a global economy weakened by a virus outbreak might be awash in too much crude.
Jamaica, a heavy oil user, imports around 20 million barrels per year and could save nearly US$400 million per annum if the price were to stay around these levels. If the price holds, it will result in gasoline price dropping, electricity bills will fall, but the government will collect far less taxes on petroleum.