Government revenues soar over budget

There has been a jump in Government revenue collection, with tax revenues for the first six months of the fiscal year exceeding the budget by $35 billion.

Minister of Finance and the Public Service, Dr. Nigel Clarke, said the outturn is a result of higher-than-expected economic performance.

“The first quarter growth came out at 5.7 percent… and all categories of revenue are over budget. Revenues from income and profits are up by nearly 13 percent or $10 billion,” he stated.

In addition, he said revenues from production and consumption are up by seven percent, or $7 billion, and revenues from international trade are up by 15 percent, or $18 billion.

Revenues from motor-vehicle licenses for the first six months of this year are 16 percent higher than budgeted.

Clarke was speaking in the House of Representatives on Tuesday (November 22) when the First Supplementary Estimates for 2022-2023 were approved.

The approval reflects a revised expenditure of $971 billion from the previously approved budget of $912 billion for the financial year.

Clarke said the First Supplementary Estimates come within the context of positive over-performance of the economy.

“As a result of this revenue over-performance… we are able to come to this Parliament six months after and put a budget that proposes $60 billion in new expenditure,” Clarke said.

The largest component of the supplementary budget is the allocation for public sector salaries and wages in keeping with the restructuring of compensation.

“We are allocating $16 billion there, and there is another $2 billion to the Ministry of Health and Wellness, and then about $3 billion for statutory deductions, making a total of $21 billion,” the Finance minister said.