Government revenues, grants continue to run ahead of projection
...but still below out-turn for comparable period in 2019/2020Friday, March 05, 2021
BY DURRANT PATE
Government revenues and grants continue to run ahead of projections with the latest out-turn showing an excess of $2.9 billion in collections.
Data from the Ministry of Finance and the Public Service show that for the period April 2020 to January 2021, government revenues and grants amounted to $446.27 billion, which is up $2.90 billion more than the original projection. While the out-turn for the period was above projection, it was still below the comparable period in 2019-2020 when $519.31 billion in revenues and grants were collected.
The out-turn of $446.27 billion for the period under review, April 2020 to January 2021, represented a decrease of approximately 14.1 per cent relative to the $519.31 billion recorded for the corresponding period in 2020.
TAX REVENUES EXPERIENCED THE BIGGEST JUMP
The biggest jump was in tax revenues, which amounted to $391.21 billion, representing $2.16 billion more than the budgeted figure. Grants on the other hand amounted to $5.51 billion during the review period and outperformed the budget by $1.34 billion.
Non-tax revenue was on the decline recording $49.53 billion, which was $602.8 million less than budgeted. Notably, no budgeted amount was booked for the bauxite levy.
Capital revenue closed the period with a provisional amount of $22.10 million, corresponding with the budgeted amount. On the expenditure side, total government expenditure for the period April 2020 to January 2021 amounted to $525.41 billion, which is $2.19 billion less than the budgeted amount of $527.60 billion.
Recurrent expenditure, which totalled $484.20 billion, accounted for 92.16 per cent of overall expenditures. Of the recurrent expenditure categories for the review period, the categories above the budgeted amount were compensation of employees and wages & salaries.
PUBLIC SECTOR WAGE BILL OVER BUDGET
Compensation of employees amounted to $185.81 billion, which was overbudget, by $154.0 million or 0.1 per cent more than budgeted while wages & salaries totalled $173.43 billion, 0.3 per cent above the budgeted amount of $172.93 billion. Relative to projections, programmes totalled $193.75 billion, which is 0.1 per cent less than budgeted. Additionally, employee contribution totalled $12.37 billion, representing 2.7 per cent less than the budgeted amount of $12.72 billion.
The fiscal deficit, referred to as the shortfall in a Government's income compared with its spending, was $79.14 billion, relative to a projected deficit of $84.23 billion. Additionally, the primary surplus balance, which is the difference between Government's revenue and its non-interest expenditure, what it is spending, not including debt payments, for the period amounted to $25.51 billion, relative to the budgeted primary surplus of $22.60 billion.
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