Government revenues fell and expenditure rose in December thus reducing the gains make in these areas, in the first nine months of the fiscal year. The fiscal surplus that was on target with the original plan has been cut by $5.7 billion and is now at $69.45 billion compared with a budgeted amount of $75.16 billion.
The decline in the primary surplus is in keeping with the reduction approved by the international Fund last year. The target was lower from 7.5 per cent of Gross Domestic Product (GDP) to 7.25 per cent for the remainder of the current fiscal year, freeing up approximately $4 billion to be spent and to 7 percent for the 2016/17 fiscal year.
For the period to January, tax revenues were ahead of target by $3.8 billion and is down from $6.6 billion from the end of 2015, interest cost that was down $4.8 billion to December, lost some of the savings, with it being $3.1 billion by January while the wages bill exceeded forecast by $3.7 billion in January having been $2.3 billion ahead of target up to December. Other expenditure that was underspend by $540 million to December is now over by $2.2 billion to January.
The fiscal deficit has climbed by $2.6 billion above forecast to $37.34 billion. Up to December the deficit was ahead of target by $5.8 billion at $25 billion.
Inflows from Bauxite Levy and grants continue to underperform with a shortfall of $5.2 billion to January.