Self-Financing Public Bodies Record Surplus of $3.96 Billion

The Government is reporting that Self-Financing Public Bodies (SFPB) recorded an overall balance surplus of $3.96 billion for the first three months of the 2017/18 fiscal year ending June 30, relative to the targeted deficit of $1.45 billion.

According to the 2017/18 Fiscal Policy Paper Interim Report, which was tabled in the House of Representatives in September by Finance and the Public Service Minister, Hon. Audley Shaw, the positive variance primarily resulted from better-than-budgeted performance by four entities.

These were the National Housing Trust (NHT), Airports Authority of Jamaica (AAJ), National Water Commission (NWC) and Port Authority of Jamaica (PAJ).

The document points out that the NHT’s improved performance resulted, as the necessary amendment of the NHT Act to facilitate special distribution to the Consolidated Fund was effected in August 2017.

Additionally, the Fiscal Paper indicates that the AAJ received increased concession fees from the operators of the Sangster International Airport in Montego Bay, consequent on the higher level of activity at that location, while further capital expenditure for the NWC and PAJ was delayed.

The document points out, however, that the overall impact of the first quarter balance surplus was, to some extent, offset by a $3.92-billion shortfall recorded by Petrojam Limited.

The SFPB’s overall balance for 2017/18, as approved by Parliament, is projected at a surplus totalling $2.5 billion, with a current balance surplus of $71.7 billion.

Meanwhile, the Fiscal Paper has indicated that there should be a net transfer of $39.9 billion to the Government. This, it further points out, resulting from transfers to and from the Government of $56.9 billion and $17 billion respectively.

Flows to the Government include Special Consumption Tax from Petrojam Limited, corporate taxes, grants to support special programmes as well as dividends