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Ministry of Finance Reports on 2016/17 First Quarter Fiscal Performance

Friday, August 26, 2016

The Ministry of Finance today reported on the 2016/17 First Quarter Fiscal Performance.

2016/17 First Quarter Fiscal Performance:

The headline numbers for the 2016/17 National Budget were: a revenue target of $996.9 million; current expenditure of $1.11 billion, including debt service; capital expenditure of $87.3 million; and a projected deficit of $199.4 million.

Revenues for the first quarter ending June 2016 are $233.3 million; this is $10.0 million (4.3%) higher than in June 2015.  The primary reason for this increase is due to an increase in Payroll Taxes collections of approximately $7.3 million above 2015 collections, higher collections in Customs Duty of $1.3 million above 2015 collections and higher Aircraft Register Fees of $1.3 million above 2015 collections, offset by lower collections in Stamp Duties.

When compared to Budget estimates, total revenues are tracking slightly lower.

Current account expenditures, excluding debt service, for the first three months ending June 2016 are $237.6 million; this is $5.7 million (2.4%) higher than was spent during the same period last fiscal year.  Government current account spending to date is higher during this fiscal year when compared to the same period last year mainly due to increases in various operational grants, increased government overheads due primarily to health insurance premiums, and the expiry of the partial suspension of Government’s matching contribution to the Public Service Superannuation Fund and payment of insurance premiums in the first quarter.

Capital account expenditures for the period ending June 2016 are $14.7 million which is above the 2015/16 spend for the same period. This is due to increased and new capital grant amounts in particular BHC – Grand Atlantic, America’s Cup and WEDCO – South Basin

Debt service costs for the first three months ending June 2016 are $46.8 million. This represents $32.2 million in interest payments and a $14.6 million contribution to the Government Borrowing Sinking Fund, representing approximately one quarter of the $58.4 million annual contribution.

Debt service to date is $4.4 million more than last year’s period.  This is due to higher debt levels.

In general, current expenditures are presently tracking slightly above budget estimates. It should be noted that in certain instances expenditures are not made evenly over the year which may distort actual figures when compared to budget.

Total Government spending for the first quarter of fiscal 2016/17 was $15.5 million (5.2%) higher than the corresponding period in 2015/16.

For the first three months of 2016/17 Government incurred a deficit of $65.9 million. This deficit was financed by drawing funds from the Butterfield Loan Facility and with working capital.

Gross debt at the end of June 2016 stood at $2.340 billion. Net of the Sinking Fund debt was $2.253 billion. In May 2016 $30 million of Private Placement

2016/17 First Quarter Fiscal Performance