Government Operations Results for June 2018

Date: August 2, 2018

Government Operations Results for June 2018

For the period of April 2018 to June 2018, the GOJ reported Total Revenues & Grants of $140.68 billion, $596 million more than the Government’s projection. Furthermore, year over year, this represents an increase of approximately 11.8% relative to the $125.84 billion recorded for the corresponding period in 2017. ‘Tax Revenue’ and ‘Capital Revenue’ outperformed projections while ‘Non-Tax Revenues’ and ‘Grants’ underperformed projections during the review period. ‘Tax Revenue’ amounted to $128.72 billion, $4.07 billion more than budgeted while ‘Capital Revenue’ of $562.7 million was reported; $296.8 million more than budgeted. ‘Grants’ underperformed budget by $3.05 billion, amounting to $1.10 million during the review period while ‘Non-Tax Revenue’ totalled $10.31 billion, $720.2 million or 6.5% less than budgeted. Notably, no provisional amount was booked for ‘Bauxite Levy’ for the review period.


Total Expenditure for the period April 2018 to June 2018 amounted to $134.16 billion, $5.99 billion or 4.3% less than the budgeted $140.14 billion. Recurrent expenditure which totalled $121.30 billion, accounted for 90.42% of overall expenditures. Relative to projections, recurrent expenditure was $7.49 billion (5.8%) less than budgeted. Of the recurrent expenditure categories over the review period, all categories with the exception of ‘Wages & Salaries’ came in below budget. ‘Programmes’ which amounted to $45.07 billion was $3.58 billion or 7.4% less than projected while ‘Employee Contribution’ which amounted to $4.95 billion for the period was under budget by 11.4% relative to the budgeted $5.58 billion. ‘Compensation of Employees’ which amounted to $51.42 billion was $138.8 million or 0.3%  less than projected, while ‘Wages & Salaries’ amounted to $46.47 billion and was $495.3 million or 1.1% more than projected.

As a result of the decrease in Expenditures for the period April 2018- June 2018, the ‘Fiscal Surplus’ was $6.52 billion, relative to a projected deficit of $57.6 billion. Additionally, the primary balance for the period amounted to $31.34 billion, 9.9% 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 $141.1 billion by the end of the 2018/2019 fiscal year. For the June quarter, a primary balance of $18.0 billion is estimated. As at the end of June 2018, this amounted to $31.34 billion. Tax Revenue is expected to total an estimated $110.0 billion by the end of the June quarter. The reported tax revenue for the end of June 2018 was $128.72 billion.


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.