Central Government Budget’s Expenditure Budget
The 2014/2015 expenditure budget is estimated at $540.1 billion. Revenues and grants are projected at $421.2 billion, leaving a financing gap of $118.9 billion.
This will be financed by loan receipts of $110.9 billion, utilization of balances in the banking system of $1.4 billion and inflows from new measures of $6.7 billion.
Tax Revenue of $377.6 billion is 9.8% above the out-turn for 2013/2014 and represents 23.4% of GOP.
Included in the tax revenue forecast is an amount of $3.2 billion already announced for the Minimum Business Tax, Betting, Gaming and Lotteries and the tidying up of the Customs Regulations; all these were introduced last year. The legislation to cover these taxes are already before the Parliament. The tax measures projections also include various small measures designed to tighten the administrative features of certain existing taxes and plug loopholes.
Non Tax Revenue
Non Tax Revenue is estimated at $34.2 billion down from the $41.1 billion out-turn in the previous fiscal year.
This includes payment for new licences and renewal of old licences applicable to the telecommunications sector, totaling $4.3 billion, and capital revenues of $1.05 billion.
The projected grants for 2014/2015 is $8.6 billion down from the $10.6 billion received in 2013/2014.
Loan receipts of $110.9 billion comprise $54.6 billion from external sources and $56.3 billion from domestic sources. The external resources is some 0.8% above the inflows from last year and the domestic 40.3% above the out-turn for the last fiscal year.
Additional Revenue Measures
Mr. Speaker you will note that the financing identified above is short some $6.7 billion to fully fund the 2014/15 budget. This amount must come from new taxes. Mr. Speaker, no administration likes to impose new taxes. However, this $6.7 billion is required to allow us to meet the Primary Surplus Target of our programme of fiscal consolidation. The tax package being proposed is approximately 0.5% of GOP…READ MORE