Tax collections

Minister of Finance Audley Shaw

Government of Jamaica revenues jumped nearly 6 percent over budget for the first two months of the fiscal year to May, and have seen an acceleration to June with a 7.9 percent increase, bringing the surplus to $8.4 billion with total inflows of $115 billion.
Revenues for the first quarter are running 11 percent or $12 billion ahead of the 2015 first quarter revenues. Recurrent spending dropped sharply by 8 percent against budget to hit $122.7 billion from a budget of $133.5 billion. The net result of the increase in revenues and reduced expenditure is a reduction in the fiscal deficit of just $7.5 billion, down by $26.8 billion projected.
Revenue in take for the two period is just over $9.2 billion or 15 percent ahead of the similar period for 2015. The primary surplus that was budgeted at $11 billion is now at $26.8 billion.
Tax revenues jumped 7.8 percent or $7.9 billion over forecast with the excess over budget flowing mainly from the following, corporation tax of $1.66 billion, PAYE $457 million, local GCT $2.4 billion, local stamp duty $680 million, education tax $300 million. GCT on imports accounted for $1.5 billion of the excess inflows while custom duty chipped in with $422 million but travel tax fell by $380 million.

Collector of Taxes office, Constant Spring, Kingston.

Interest cost fell by $3.5 billion and normal housekeeping expenses is down by $4.7 billion while the wage bill moved up by $936 million. Capital spending was under by $3.7 billion with only $9.6 billion spent to June.
The increase in revenues is in keeping with a trend seen in the first 9 months of 2015 when revenues were growing well ahead of forecast.
The savings in the cost of debt servicing, plus the increased revenues above budget, translate to $11.8 billion or $47 billion over a full 12 months, should the trend continue, well in excess of the cost of the tax break agreed for personal income tax.

GOJ targets on track but

Jamaica’s Ministry of Finance – newer office building

The Jamaican government is on track to achieve their primary surplus target with the November data showing a $6.2 billion surplus over the target set for the period up to November.
The primary surplus at the end of November is $54.4 billion against a target of $48.2 billion. The excess was achieved although revenues are off by $6.8 billion a slightly worse position than at October by $500 million with a revenue shortfall then of $6.28 billion. Tax revenues fell short by $700 million in November and was the major reason for the shortfall in the month.
On the payment side the wages bill in on target with very little variation but other cost fell by $1.36 billion in November bringing the year to date cut to $2.8 billion. Interest saved climbed to $3.4 billion in November from $3 billion in October. Capital expenditure is underspent by a further $2 billion in November and $7.4 billion so far for the fiscal

Collector of Taxes office, Constant Spring, Kingston, Jamaica

year.
Government borrowed $10 billion less on the local market but foreign borrowing is up by $73.4 billion but loan repayments are in line with original forecast.
The fiscal deficit that was targeted at $34.4 billion is down by $9.6 billion to $24.75 billion and is better than the deficit at the end of October when it reached $26.8 billion.
Tax on interest brought in $2.9 billion in revenue over budget, PAYE is up by $1.7 billion. The shortfalls were mostly local GCT down by $4.3 billion, Corporation tax $4.6 billion, Special consumption $2.2 billion, International traded $2.4 billion and grants $1.2 billion.