Government of Antigua and Barbuda
Review
Quarterly
January to March 2013
Highlights
The overall fiscal performance improved for the period January to March 2013 compared to the same period in 2012
Total revenue decreased marginally and total expenditure decrease significantly.
Revenue Performance An analysis of revenue performance shows total revenue
real estate sector and, in particular, a major transaction
and grants amounted to $159.8 million, a 3.4% or $5.5
related to the expansion work at the Jumby Bay Resort.
million decrease compared to the first quarter in 2012. The
In the first quarter of 2013, revenue from Stamp Duties
main component of total revenue is current revenue, which
amounted to $5 million, which is 74% less than the same
fell by 3.3% from $165.0 million in 2012 to $159.6 million
period in 2012. On the other hand, the ABST remained
for the period under review. The decline in tax revenue is
relatively flat at about $53 million while revenue from
due to a significant decline in revenue from Stamp Duties
Property Tax declined by about 1% from $4.8 million in
and the reallocation of the Passenger Facility Charge,
the first quarter of 2012 to $4.7 million in 2013 .
Embarkation Tax (in the form of the Airport Administration Charge) and the Cruise Passenger Tax from Central
There was a 170.8% increase in revenue from the
Government to the Airport Authority and the Antigua Pier Group.
Corporate Income Tax from $6.5 million in the first quarter of 2012 to $17.6 million in the first quarter of 2013. This increase was a result of the Inland Revenue
Revenue from Stamp Duties amounted to $19.2 million in
Department’s efforts to collect Corporate Income Tax
the first quarter of 2012, reflecting increased activity in the
arrears. The Customs and Excise Department also collected arrears of about $10 million in respect of the Oil
Chart 1: Comparison of Recurrent Revenue (EC$m)
132.1 118.4
Import Levy, which resulted in a 100% increase in revenue from this source compared to 2012. Likewise the Personal Income Tax, Import Duty and
Revenue Recovery Charge continue to be buoyant. Revenue from the Personal Income Tax increased by 18% from $9.8 million in the first quarter of 2012 to $11.6 million over the same period in 2013. Further, the 34.1
Import Duty grew by 4.3% from $18.5 million in first
23.9 8.9 7.0 Direct Tax Revenue Indirect Tax Revenue
Jan ‐ Mar 2012
Non‐Tax Revenue
Jan ‐ Mar 2013
A publication of the Ministry of Finance, the Economy and Pubic Administration Issued: 4 July 2013
quarter of 2012 to $19.3 million over the same period in 2013 while the Revenue Recovery Charge increased slightly to $16.5 million in the first quarter of 2013. Overall, the falloff in revenue from the Stamp Duties was more than offset by the increased revenue generated 1
Expenditure Performance Total expenditure decreased by 23.8% or $ 41.1 million from $172.6 million for the period January to March 2012
Chart 2: Recurrent Expenditure (EC$m)
expenditure and capital expenditure, was reduced by
57.8
Primary expenditure, which comprises primary current
65.7
66.8
to $131.5 million for the same period in 2013.
24.0% or $36.1 million from $150.4 million in 2012 to $114.3 million in 2013. Moreover, primary current expenditure, which includes wages and salaries, goods
quarter 2013. The main contributor to the decline in primary current expenditure is spending on other
2.1
transfers, which fell by 64.4 % from $30.3 million in 2012 to $10.8 million at the end of the first quarter 2013. This
1.3
quarter of 2012 to $113.0 million at the end of the first
16.5
23.6
$35.3 million from $148.3 million at the end of the first
30.8
and services, pension, and other transfers declined by
is largely a result of the timing of transfer payments to Salaries and Wages
statutory corporations. There were decreases in other components of primary
Goods and Services
Jan ‐ Mar 2012
current expenditure. Wages and salaries fell by 1.6%
Capital Transfers and Expenditure Grants Jan ‐ Mar 2013
from $66.8 million at the end of the first quarter of 2012 to $65.7 million at the end of first quarter of 2013. Expenditure on goods and services fell by 30.1% from $23.6 million in 2012 to $16.5 million in 2013. The significant reduction in expenditure in the first quarter of 2013 compared to the same period in 2012 was a result of the Government’s efforts to curtail expenditure in light of lower than budgeted revenue performance. Also, the fact that the budget for 2013 was passed in late January 2013 meant that the Ministries did not have access to much of their budgetary allocations until February 2013.
Recurrent revenue
Chart 3: Revenue and Expenditure Comparison (EC$m)
165.0
159.5
decreased by $5.6m
150.3
(3.4%) and primary 114.3
current expenditure
decreased by $35.3m (23.8%) for the period January Total Recurrent Revenue Jan ‐ Mar 2012
Total Recurrent Expenditure
to March 2013
Jan ‐ Mar 2013
A publication of the Ministry of Finance, the Economy and Pubic Administration Issued: 4 July 2013
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Revenue Performance cont’d from sources such as the Corporate Income Tax, Personal Income Tax, and Import Duty. However, the total collection for the first quarter in 2013 was less than collections for the same period in 2012 due to the absence of revenue from the Passenger Facility Charge, Embarkation Tax, and the Cruise Passenger Tax. These taxes generated about $15 million in the first quarter of 2012. Turning to Public Debt, the total interest payments on
Public Debt
Government’s Public Sector Debt (which includes the central government and government guaranteed debts)
Chart 4: Debt Interest Payments (EC$m)
amounted to $26 million for the period January to March
26.0
payments on Government public Sector debt were $24.8
2013. Over the same period in 2012, total interest million. Of the $26 million in interest payments made in 2013,
15.8
$17.2 million or 66.2% represents Central Government payments and $8.8 million or 33.8% represents interest payments on Government guaranteed debt. Of the $17.2 million in interest payments on Central Government debt, $12.4 million or 72.1% was paid to domestic creditors while $4.9 million or 27.9% was paid to external creditors.
Dec 2012
This compares to interest payments of $12.2 million on
Jan to Mar 2013p
domestic debt and $3.6 million on external debt in 2012. Total interest payments were 4.7% higher in 2013 when compared to the same period in 2012. This was mainly driven by a 36% increase in external interest payments. The growth in external interest payments can be attributed primarily to the regular servicing of Bilateral Paris Club debt, Bilateral Non-Paris Club debt, and multilateral debt, especially to the Caribbean Development Bank. The total debt stock, which includes central government and government guaranteed debt balances and arrears, declined by 1.1% from $2.83 billion at the end of the first quarter of 2012 to $2.8 billion for the same period in 2013.
Overall Fiscal Performance
Chart 5: Comparison of Overall Balance (EC$m)
The overall fiscal performance for the period January to March 2013 improved by 501.8% from a deficit of $7.0
28.3
million in 2012 to a surplus of $28.4 million in 2013. The primary balance also improved by 200.7% from a surplus of $15.2 million in 2012 to a surplus of $45.7 million in 2013. This significant improvement indicates that the Government was able to allocate about $28 million of revenues generated to cover some of its debt obligations,
including
interest
payments,
debt
amortization, and the repayment of non-debt domestic arrears (which includes unpaid balances due to local
(7.1) Jan ‐ Mar 2012
Jan ‐ Mar 2013
contractors and suppliers). A publication of the Ministry of Finance, the Economy and Pubic Administration Issued: 4 July 2013
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Table 2: Economic Classification of Government Finances
Jan ‐ Mar 2012
Jan ‐ Mar Jan to Mar 2013 / Jan to 2013 Mar 2012 $ change % change (5.8) (3.5)
TOTAL REVENUE AND GRANTS
165.5
159.8
Total Recurrent Revenue Direct Ta x Revenue Indi rect Ta x Revenue of which: ABST (gros s ) Sta mp Duty
165.0 23.9 132.1
159.5 34.1 118.4
(5.5) 10.2 (13.7)
(3.4) 42.5 (10.4)
53.2 19.2
53.0 5.0
(0.2) (14.1)
(0.4) (73.8)
8.9
7.0
(2.0)
(21.9)
0.5 0.0 0.5
0.3 0.0 0.3
(0.2) 0.0 (0.2)
(44.2) 0.0 (44.2)
TOTAL EXPENDITURE
172.6
131.5
(41.1)
(23.8)
Primary Expenditure
150.3 66.8 23.6
114.3 65.7 16.5
(36.1) (1.1) (7.1)
(24.0) (1.6) (30.3)
7.2 0.8
7.6 0.5
0.4 (0.2)
5.6 (32.5)
57.8 20.9
30.8 13.6
(27.0) (7.4)
(46.7) (35.2)
2.1
1.3
(0.8)
(38.6)
22.2 5.9 16.3
17.3 4.9 12.4
(5.0) (1.1) (3.9)
(22.5) (17.7) (24.2)
CURRENT ACCOUNT BALANCE
(5.5)
29.3
34.7
633.8
PRIMARY BALANCE
15.2
45.5
30.3
199.9
OVERALL BALANCE
(7.1)
28.3
35.3
499.8
Non‐Ta x Revenue Total Capital Revenue Gra nts a nd Contri buti ons Ca pi ta l Revenue from Sa l e of As s ets
Sa l a ri es a nd Wa ges Goods a nd Servi ces of which: Rent Tra vel Tra ns fers a nd Gra nts of which: Pens i ons a nd gra tui ties Tota l Ca pi ta l Expendi ture Publ i c Debt Servi ci ng Externa l Interes t Domes ti c Interes t
Explanatory Notes Central government refers to the activities of the Government excluding those for statutory bodies. Transactions at this level reflect the legal budget of the central government. Current account balance is the difference between recurrent revenue and recurrent expenditure.
Overall Balance: On a cash basis, total incomings and outgoings from the budget must always balance. The overall balance is the difference between the total revenue and grants and total expenditure.
The primary balance excludes interest payments from expenditure. It can be said to provide an indicator of current fiscal effort, since interest payments are predetermined by the size of previous deficits.
A publication of the Ministry of Finance, the Economy and Pubic Administration Issued: 4 July 2013
For further information, please contact: Office of the Financial Secretary Tel: (268) 462 4860/61 Fax: (268) 462 1622 Email: ofsantigua@gmail.com Visit the Government website for more information www.antigua.gov.ag
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