Government Operations Results for May 2019

Date: July 03, 2019

For the period of April to May 2019, the GOJ reported Total Revenues & Grants of $93.60 billion, $2.31 billion more than the Government’s projection. Furthermore, year over year, this represents an increase of approximately 10.7% relative to the $84.59 billion recorded for the corresponding period in 2018. ‘Tax Revenue’ and ‘Non-Tax Revenue’ outperformed projections while ‘Capital Revenues’ and ‘Grants’ underperformed projections during the review period. ‘Tax Revenue’ amounted to $83.97 billion, $2.09 billion more than budgeted while ‘Non-Tax Revenue’ of $7.96 billion was reported; $578.7 million more than budgeted. ‘Grants’ underperformed budget by $304.4 million, amounting to $854.7 million during the review period. Whereas, ‘Capital Revenues totalled $813.3 million, $52.9 million or 6.1% less than budgeted. Notably, no provisional amount was booked for ‘Bauxite Levy’ for the review period.


Total Expenditure for the period April to May 2019 amounted to $96.65 billion, $1.19 billion or 1.2% more than the budgeted $95.45 billion. Recurrent expenditure which totalled $86.98 billion, accounted for 89.99% of overall expenditures. Relative to projections, recurrent expenditure was $468.6 million (0.5%) more than budgeted. Of the recurrent expenditure categories for the review period, all categories with the exception of ‘Employee Contribution’ were above the budgeted amount. ‘Programmes’ which amounted to $31.28 billion, was $603.9 million or 2% more than projected. ‘Compensation of Employees’ which amounted to $37.31 billion was $447.6 million or 1.2% more than projected and ‘Wages & Salaries’ amounted to $33.72 billion and was $689.1 million or 2.1% more than projected. While, ‘Employee Contribution’ totalled $3.59 billion, 6.3% less than the budgeted amount of $3.83 billion.

As a result of the increase in Expenditures for the period April to May 2019, the ‘Fiscal Deficit’ was $3.04 billion, relative to a projected deficit of $4.16 billion. Additionally, the primary balance for the period amounted to $15.34 billion, 3.6% 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 $150.93 billion by the end of the 2019/2020 fiscal year. For the June quarter, a primary balance of $19 billion is estimated. As at the end of May 2019, this amounted to $15.34 billion. Tax Revenue is expected to total an estimated $115 billion by the end of the June quarter. The reported tax revenue for the end of May 2019 was $83.97 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.