Government collects more revenues but cuts spending

Although the government collected $175.37 billion in revenues and grants – $11.57 billion more than it expected during the first three months of this fiscal year – it spent only $165.66 billion, resulting in a budget surplus of $9.7 billion during the period. 

This, despite the hardships and higher prices being experienced by the majority of Jamaicans due to the COVID-19 lockdown measures; higher shipping costs; higher container costs and freight cost, as well as the sliding dollar. Tax revenues amounted to $131.3 billion, although the government budgeted for only $119.16 billion.  This was due to collections of $35.85 billion from income and profits taxes – $19.4 million more than budgeted for. 

The government also collected $47.69 billion from production and consumption taxes such as the general consumption taxes (GCT) and the special consumption taxes (SCT) on locally produced goods and services. This amount was $3.41 billion more than Clarke and his team at the Heroes Circle-based Ministry of Finance and Planning expected.

Meanwhile, international trade taxes, which include customs duty and the GCT paid on imported goods and services were running at $47.77 billion during the period – $8.72 billion more than budgeted for. However, despite collecting more than it expected and the suffering of the people, the authorities cut the amount they planned to spend during the period under review by $7.59 billion to $165.66 billion. This led to a budget surplus of $9.7 billion, although the plan was to run a deficit of $9.44 billion. Meanwhile, the primary surplus, or the amount of money put aside to service the debt, was $34.56 billion, although only $14.33 billion was needed for this purpose during the quarter under review.