May 01,2018
For the period of April 2017 to March 2018, the GOJ reported Total Revenues & Grants of $560.84 billion, $7.27 billion more than the Government’s projection. Furthermore, year over year, this represents an increase of approximately 12.2% relative to the $499.88 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 $496.89 billion, $6.97 billion more than budgeted while ‘Capital Revenue’ of $4.89 billion was reported; $1.49 billion more than budgeted. On the other hand, ‘Non-Tax Revenue’ totalled $53.31 billion, $934.2 million or 1.7% less than budgeted. Also, ‘Grants’ closed at $5.61 billion, $250.8 million or 4.3% below the budgeted figure of $5.86 billion. Notably, ‘Bauxite Levy’ performed within the budgeted figure of $127.50 million.
Expenditures
Total Expenditure for the period April to March 2018 amounted to $552.20 billion, $7.71 billion 1.4% less than the budgeted $559.91 billion. Recurrent expenditure which totalled $505.24 billion, accounted for 91.50% of overall expenditures. Relative to projections, recurrent expenditure was $4.56 billion (0.9%) less than budgeted. Of the recurrent expenditure categories over the review period, all categories with the exception of ‘Employee Contribution’ came in below budget. ‘Programmes’ which amounted to $176.78 billion was $993.8 million or 0.6% less than projected, ‘Compensation of Employees’ which amounted to $193.28 billion was $1.19 billion or 0.6% less than projected, while ‘Wages & Salaries’ amounted to $178.37 billion and was $2.28 billion or 1.3% less than projected. ‘Employee Contribution’ which amounted to $14.92 billion for the period was over budget by 7.9% relative to the budgeted $13.82 billion.
As a result of the increase in Revenue & Grants for the period April to March 2018, the ‘Fiscal Surplus’ was $8.63 billion, relative to a projected deficit of $6.35 billion. Additionally, the primary balance for the period amounted to $143.81 billion, 9.6% 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 $132 billion by the end of the 2017/2018 fiscal year. As at the end of March 2018, this amounted to $143.81 billion which indicated that the government surpassed its target. Tax Revenue was expected to total an estimated $478 billion by the end of the March quarter. The reported tax revenue for the quarter was $496.89 billion, $18.6 billion above target.
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.
