Three main tax categories all slightly over-performed
Jamaican Government revenues are running slightly ahead of projection based on the latest data coming out of the Ministry of Finance and the Public Service.
The figures for the period April 2020 to October 2020 showed revenues and grants running at $2.88 billion above projection to earn $298.68 billion. However, this is a decrease of approximately 16.7 per cent relative to the $358.76 billion out-turn for the same period in 2019.
The decline can be explained by the slow-down in economic activity during the period due to COVID-19 coming from a bumper tax year in 2019. The three main tax categories all outperformed projections during the review period.
Tax revenue amounted to $261.69 billion, up $2.42 billion over projection as non-tax revenue came out at $33.46 billion, representing an increase of $11.7 million over the projected amount. Grants totalled $3.51 billion and were outperforming projections by $444.5 million.
NO BAUXITE INCOME
There was no budgeted amount booked for Bauxite Levy, which is the income government receives from bauxite companies operating in the island. This is due to the fact that one bauxite company has suspended operations to undertake major upgrading while the others have slowed back production due to depressed prices and increasing operating costs.
The Capital Revenue, which is money received on an irregular or once-off basis closed the period with a provisional amount of $22.10 million, which was in line with projections.
On the expenditure side, total Expenditure for the period April to October 2020 came out at $370.8 billion, which was $87.7 million less than the budgeted amount of $370.88 billion. Recurrent expenditure, which is money paid out to carry on the functions of government amounted to $343.38 billion.
Recurrent expenditures accounted for 92.61 per cent of overall expenditures in government. The two categories under recurrent expenditure that overshot their targets were Employee Contribution and Interest.
Employee contribution totalled $8.28 billion, which was $108.1 million or 1.3 per cent more than budgeted while Interest amounted to $75.71 billion, representing a 0.6 per cent increase over budgeted amount of $75.28 billion.
Relative to projections, the out-turn for expenditure on programmes was $138.43 billion, which was 0.6 per cent less than the budgeted amount. Additionally, Wages and Salaries in the public sector came out at $120.95 billion for the period under review.
This was 0.1 per cent less than the budgeted amount of $121.06 billion. The fiscal deficit, which is a shortfall in a government’s income compared with its spending, was $72.11 billion, relative to a projected deficit of $75.07 billion.
Additionally, the primary surplus, which is comprised of current government spending less current income from taxes, and excludes interest paid on government debt for the period amounted to $3.60 billion, relative to the budgeted primary surplus of $210.70 million.