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.

Expenditures

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.

 

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2019-07-03T19:36:26+00:00