Government Operations Results for August 2019

Date: October 03, 2019

For the period of April to August 2019, the GOJ reported Total Revenues & Grants of $250.63 billion, $4.69 billion more than the Government’s projection. Furthermore, year over year, this represents an increase of approximately 9% relative to the $229.97 billion recorded for the corresponding period in 2018. ‘Tax Revenue’, ‘Non-Tax Revenue’ and ‘Grants’ outperformed projections while ‘Capital Revenues’ underperformed projections during the review period. ‘Tax Revenue’ amounted to $222.85 billion, $3.35 billion more than budgeted while ‘Non-Tax Revenue’ of $24.06 billion was reported; $1.46 billion more than budgeted. ‘Grants’ outperformed the budget by $117 million, amounting to $2.91 billion during the review period. Whereas, ‘Capital Revenues totalled $813.3 million, $233.60 million or 22.3% less than budgeted. Notably, no provisional amount was booked for ‘Bauxite Levy’ for the review period.

Expenditures

Total Expenditure for the period April to August 2019 amounted to $252.79 billion, $3.65 billion or 1.4% less than the budgeted $256.43 billion. Recurrent expenditure which totalled $229.61 billion, accounted for 90.83% of overall expenditures. Relative to projections, recurrent expenditure was $1.03 billion (0.4%) less than budgeted. Of the recurrent expenditure categories for the review period, all categories with the exception of ‘Wages & Salaries’ and ‘Programmes’ were below the budgeted amount. ‘Programmes’ which amounted to $84.32 billion, was $2.77 billion or 3.4% more than projected. Wages & Salaries’ amounted to $82.04 billion and was $660.30 million or 0.8% more than projected. Whereas, ‘Compensation of Employees’ which amounted to $88.87 billion was $62.60 million or 0.1% less than projected. In addition, ‘Employee Contribution’ totalled $6.84 billion, 9.6% less than the budgeted amount of $7.56 billion.

As a result of the decrease in Expenditures for the period April to August 2019, the ‘Fiscal Deficit’ was $2.16 billion, relative to a projected deficit of $10.49 billion. Additionally, the primary balance for the period amounted to $54.26 billion, 9.3% 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 $150.93 billion by the end of the 2019/2020 fiscal year. Up to the September quarter, a primary balance of $35.70 billion is estimated. As at the end of August 2019, this amounted to $54.26 billion. Tax Revenue is expected to total an estimated $242 billion by the end of the September quarter. The reported tax revenue for the end of August 2019 was $222.85 billion.

 

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2019-10-03T22:02:03+00:00