Government revenues

More taxes less cost keep GOJ in black

August 18, 2019 by IC Insider.com

Nigel Clarke, Jamaica’s Minister of Finance

Data put out by Jamaica’s Ministry of Finance shows the government’s operating at a surplus with increased taxes and major cost reductions in two critical areas.
Information for the June quarter shows a surplus of $6.5 billion for the quarter against a planned deficit of a mere $58 million. Helping in achieving the positive outturn was near $4 billion in lower interest payments and the increased taxes and reduced expenditure of $3.6 billion on other areas of government operations. Capital expenditure saw $1.5 billion more spent than budget, while grants pulled in $3 billion less than planned.
Tax revenues brought in $128.7 billion, up 3.3 percent over budget and revenues from PAYE grew just one percent above budget, at $14.4 billion. Motor Vehicle license rose 7.7 percent above budget to reach $1 billion. GCT on local goods and services slipped 2.3 percent below budget to end at $24 billion but is up strongly on the total take for the 2018 first quarter. GCT on imports of $20.4 billion rose 2.7 percent above budget. Travel tax climbed 10.3 percent to $5 billion while betting, gaming and lottery taxes pulled in 28.6 percent more than in 2018 with $1.26 billion coming in for the June 2019 period.
The improvement is a continuation of healthy tax inflows for a number of years and is a sign of continued economic growth for the country.

Filed Under: Economy, Feature Stories Tagged With: GCT, Government revenues, Jamaica Government, Jamaica Government fiscal, Ministry of Finance, Nigel Clarke

Surplus in 4 months to July

September 4, 2017 by IC Insider.com

Central government of Jamaica’s fiscal operations, rack up a tidy surplus, in contrast to a sizeable deficit budgeted to July this year, data on the government’s operations, recently released show.
This development is unusual at this time of the year when deficits are usually racked up until the last fiscal quarter, the period when surplus revenues are generated.
The surplus was helped by an $11.4 billion in capital inflows showing up as divestment proceeds/other and is boosted by a near $6 billion increase in recurring revenues over forecast and a $7 billion underspending thus ensuring a healthy surplus for the 4 months period amounting to $5.4 billion, against a budgeted deficit of $7 billion. The critical primary surplus a major benchmark of the IMF agreement rest, ended at $38.6 billion versus $29 billion planned.
Also contributing to the positive outcome was a cut in non-payroll expenditure of $6 billion, reduced interest cost of $3.2 billion and positive tax revenues of $5.4 billion. Corporate taxes rose 34 percent above forecast adding $3.3 billion more than the $10 billion planned but corporations are not paying over tax withheld on dividend with only $386 million being paid versus projection of $506 million. Special Consumption Taxes on import fell $2.8 billion while the tax on local production rose by $3.5 billion, from forecast and travel taxes providing $1 billion more than planned.

Filed Under: Economy, Feature Stories Tagged With: GOJ, Government revenues, IMF, Jamaica Government fiscal

GOJ income falls but fiscal on track

February 5, 2015 by IC Insider.com

The Jamaican government is on track to achieve their primary surplus target with the December data showing only half a billion positive balance over the budgeted target level, but that is well down on $6.2 billion excess achieved for the period to November.
The primary surplus at the end of December comes out at $66.5 billion and is up from November’s surplus of $54.4 billion. The excess over forecast was achieved although revenues are off by $10 billion, or more than $3 billion worse than the $6.8 billion at the end of November. Tax revenues fell short by $9.7 billion to November as economic measures bite, but non tax revenue was better than forecast by $2 billion and grants were off by $3 billion.
Tax on interest brought in $1.5 billion in revenue over budget and was up by 39 percent, PAYE rose by 4 percent or $2 billion to $49.9 billion. The shortfalls were mostly local GCT down by $5.4 billion or 10.6 percent to $5.5 billion. Corporation tax fell short by $6.6 billion or 30 percent, Special consumption tax dropped $1.7 billion or 19 percent
The wage bill that was on target to November shows $1.76 billion in savings to December, as government spent $121 billion on this item, interest cost is down by $4.5 billion to $95 billion and other cost fell by $671 million. Capital expenditure, underspent by $7.4 billion to November is now $8.3 billion below forecast or 31 percent reduction.
The fiscal deficit targeted at $33.87 billion is down by $5 billion to $28.9 billion thanks to cut in scheduled payments.