The Full Story
There has been a jump in Government revenue collection, with tax revenues for the first six months of the fiscal year exceeding budget by $35 billion.
Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, said that the out-turn is as a result of higher-than-expected economic performance.
“The first quarter growth came out at 5.7 per cent… and all categories of revenue are over budget. Revenues from income and profits are up by nearly 13 per cent or $10 billion,” Dr. Clarke said.
In addition, he noted that revenues from production and consumption are up by seven per cent or $7 billion and revenues from international trade are up by 15 per cent or $18 billion. Revenues from motor-vehicle licences for the first six months of this year are 16 per cent higher than budgeted.
Dr. Clarke was speaking in the House of Representatives on Tuesday (November 22) where the First Supplementary Estimates for 2022/23 were approved.
The approval reflects a revised expenditure of $971 billion, from the previously approved budget of $912 billion for the financial year.
Minister Clarke said the First Supplementary Estimates come within the context of positive overperformance of the economy.
“As a result of this revenue overperformance… we are able to come to this Parliament six months after and put a Budget that proposes $60 billion in new expenditure,” Dr. 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 Minister said.