Durrant Pate/Contributor

Government of Jamaica revenues and grants are running ahead of projections with the out-turn for the period of April to May 2022 amounting to J$107.76 billion, which is J$6.30 billion more than projected.

However, this number represents a decline of approximately 9.1 per cent relative to the J$118.58 billion recorded for the corresponding period in 2021. ‘Grants’, ‘Bauxite Levy’ and ‘Capital Revenue’ underperformed projections during the review period.

Grants closed the period at J$407.60 million, J$319 million less than the budgeted amount. ‘Bauxite Levy’ amounted to J$103.10 million during the review period, J$98.20 million less than the budgeted amount.

‘Capital Revenue’ recorded nil relative to the budgeted amount of J$68.60 million. Conversely, ‘Tax Revenue’ closed the period at J$101.87 billion, J$6.44 billion more than the budgeted amount.

‘Non-Tax Revenue’ of J$5.38 billion was reported which was 6.9 per cent higher than the budgeted amount.

GOJ expenditures

Total expenditure for the April to May 2022 period amounted to J$117.61 billion, which was J$957.40 million less than the budgeted amount of J$118.56 billion. Recurrent expenditure which totalled J$108.72 billion, accounted for 92 per cent of overall expenditures.

Under the recurrent expenditure categories for the review period, the categories above the budgeted amount were ‘Wages and Salaries’ and ‘Compensation of Employees’. ‘Wages and Salaries’ totalled J$43.27 billion, 3.7 per cent above the budgeted amount of J$41.71 billion.

‘Compensation of Employees’ totalled J$46.35 billion, J$1.26 billion above the budgeted amount. The categories below the budgeted amount included ‘Programmes’ which amounted to J$42.01 billion, which was J$2.30 billion or 5.2 per cent less than budgeted.

Similarly, ‘Employee Contribution’ totalled J$3.08 billion, which was J$296.90 million below the budgeted amount of J$3.38 billion. ‘Interest’ totalled J$20.36 billion, 0.9 per cent less than budgeted.

Fiscal deficit and primary balance

The ‘Fiscal Deficit’, which is the shortfall in a government’s income compared with its spending was J$9.85 billion, relative to a ‘Projected Deficit’ of J$17.11 billion.

Additionally, the ‘Primary Surplus Balance’, which is the current government spending less current income from taxes, and excludes interest paid on government debt for the period under review amounted to J$10.52 billion, relative to the ‘Budgeted Primary Surplus Balance’ of J$3.44 billion booked in 2021.