For the period of April 2017 to June 2017, the GOJ reported Total Revenues & Grants of $125.84 billion, $7.76 billion more than the government’s projection. Furthermore, year over year, this represents an increase of approximately 9.3% relative to the $115.13 billion recorded for the corresponding period in 2016. ‘Tax Revenue,’ ‘Non-Tax Revenue’ and ‘Grants’ outperformed projections while ‘Bauxite Levy’ and ‘Capital Revenue’ under-performed projections during the review period. ‘Tax Revenues’ amounted to $117.12 billion, $5.87 billion more than budgeted, ‘Non-Tax Revenue’ of $6.90 billion was reported; $1.45 billion more than budgeted. ‘Grants’ totaled $1.44 billion, $451.3 million or 45.7% more than budgeted. In addition, “Bauxite Levy” was lower than expected, amounting to $127.5 million, relative to the budgeted figure of $131 million, while ‘Capital Revenues’ under-performed projections by $7.4 million to total $258.3 million.
Expenditures
Total Expenditure for the period April to June 2017 amounted to $124.24 billion, $1.5 billion or 1.2% less than the budgeted $125.74 billion. Recurrent expenditure which totaled $119.04 billion, accounted for 96% of overall expenditures. Relative to projections, recurrent expenditure was $1.5 billion (1.2%) less than budgeted. Of the recurrent expenditure categories over the review period, ‘Compensation of Employees’ came in slightly under budget totaling $47.79 billion relative to a budget of $47.56 billion. ‘Employee Contribution’ which amounted to $3.69 billion, was $100.6 million less than projected, while ‘Wages and Salaries’ was above projection by $11.7 million to total $43.79 billion. ‘Interest’ also closed the period under budget by 9.5%, while ‘Programmes’ was over budget by 4%. Capital expenditure amounted to $5.21 billion for the period and was on target.
As a result of the decrease in expenditures for the period April to June 2017, the ‘Fiscal Surplus’ was $1.60 billion, relative to a projected deficit of 7.66 billion. Additionally, the primary balance for the period amounted to $30.64 billion, 25.4% more than budgeted.
As part of the Memorandum of Economic and Financial Policies (MEFP), the GOJ estimates that the primary balance, as a performance criterion, should amount to $131.9 billion by the end of the 2017/2018 fiscal year. For the June quarter, a primary balance of $3.4 billion is estimated. As at June 2017, this amounted to $30.64 billion. Tax Revenue is expected to total an estimated $100 billion by the end of the June quarter, as at June 2017, tax revenue was booked at $117.12 billion.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
