Wednesday, November 5, 2008

Gov't missed revenue target again

Published: Wednesday November 5, 2008

The central government missed its revenue target for the fifth consecutive month in September, making April, the first month in the fiscal year, the only one where cash flows into the government coffers was in line with budget.

Government's revenues and grants was $2.2 billion short of target during September and $5.4 billion below budget for the first half of the fiscal year.

Total income of $131.4 billion was 15 per cent higher than the corresponding period, however, while the central government's ability to contain non-interest expenditure at $9.6 billion below target allowed the state to beat its fiscal deficit target of $48.8 billion for the first half of the fiscal year by $3.1 billion.

Interest expense on the other hand totalled $59.2 billion for the six months to September 30 or $1.1 billion more than projected.

Taxes earned from income and profits was better than programmed by $417 million, although PAYE was $333 million less than planned.

Alternatively, earnings from taxes on production and consumption and international trade was lower than targeted by $3.6 billion and $1.7 billion respectively.

Jamaica's bauxite earnings were negatively affected by lower commodity prices on the international market and thus tax on bauxite/alumina companies was $877 million lower than expected while bauxite levy underperformed $1.4 billion.

Source: Jamaica Observer

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