Review
Government of Antigua and Barbuda
January to December 2012
Highlights 2012 compared to 2011:
Total recurrent revenue increased by 7.5%
Total expenditure decreased by 5.0%
Revenue from ABST increased by 11.8%
Primary balance improved by 242.9%
Revenue Performance An analysis of revenue performance shows total revenue and
widening of the base for personal income tax to include
grants amounted to $644.2 million, a 3.4% or $21.0 million
allowances and benefits as part of taxable income.
increase compared to the year ending 31 December 2011.
There was a 3.4% increase in revenue from the import
The main component of total revenue is current revenue, which increased by 7.5% from $597.4 million in 2011 to $642.0 million for the period under review. The main contributor to this increase in current revenue is tax revenue which grew by 8.2% from $552.4 million at the end of 2011 to $597.8 at the end of 2012.
duty and the revenue recovery charge for the period under review. Import duty yielded $81.0 million at the end of 2012 compared to $78.4 million at the end of 2011. The revenue from the RRC amounted to $70.5 million at the end of 2012 compared to $68.3 million at the end of 2011. On the other hand, revenue from the consumption tax was
This increase in tax revenue was mainly driven by strong
6.8% lower at the end of 2012 compared to the same
performance of four key taxes: the personal income tax,
period in 2011.
tamp duty, the ABST, and property tax, which grew by
$33.2 million for 2011 and $30.9 million for 2012.
21.8%, 34.6%, 11.8%, and 25.6% respectively. This
Finally, non-tax revenue declined by 1.5% from $45.0
improvement in tax yield is attributed to modest growth in economic output as well as increased compliance and
Revenue from this source amounted to
million in 2011 to $ 44.3 million in 2012. This decline in non-tax revenue is due to lower profits received from the ECCB.
Chart 1: 2011 and 2012 Comparison of Recurrent Revenue (EC$m)
466.7
85.7
500.3
97.5
Direct Tax Revenue
45.0 Indirect Tax Revenue 2011
44.3
Non‐Tax Revenue
2012p
A publication of the Ministry of Finance, the Economy and Public Administration , Issued: 28 March 2013 Certainty | Confidence | Credibility
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Expenditure Performance Total expenditure decreased by 5.0% or $36.0 million from
On the other hand, there were minor increases in other
$714.6 million for the period January to December 2011 to
components of primary current expenditure. Wages and
$678.5 million for the same period in 2012.
salaries grew by 3.2% from $263.9 million at the end of 2011
Primary expenditure, which comprises primary current
to $272.4 million at the end of 2012. As indicated in previous
expenditure and capital expenditure, was reduced by 7.3%
reviews, this was due to employment of new teachers and
or $47.8 million from $651.6 million in 2011 to $603.8
upgrades for staff in various government departments.
million in 2012. Moreover, primary current expenditure,
Though spending on overall wages and salaries increased,
which includes wages and salaries, goods and services,
expenditure on overtime fell by 61.8% from $12.3 million in
pension, and other transfers declined by $27.3 million from
2011 to $4.7 million in 2012.
$612.9 million at the end of 2011 to $585.6 million at the
Expenditure on goods and services increased by 11.2% from
end of 2012. The main contributor to the decline in primary
$103.8 million in 2011 to $115.5 million in 2012. Included in
current expenditure is spending on other transfers, which
this expenditure on goods and services is spending on road
fell by 31.5% from $161.8 million in 2011 to $111 million
repair and maintenance, which increased by 46.8% from $1.7
at the end of 2012. This is largely a result of lower financial
million in 2011 to $2.5 million in 2012.
assistance provided by the Government to ABI Bank Chart 2: 2011 and 2012 Comparison for Recurrent Expenditure (EC$m)
263.9
272.4 245.2 197.8
103.8
115.5
38.7 18.2 Salaries and Wages
Goods and Services
2011
Capital Expenditure
Transfers and Grants
2012p
Capital expenditure declined by 53.1% from $38.7 million in
Table 1: Selected Expenditure Items as a Percentage of Recurrent Revenue Salaries and Wages
2011 44.2%
2012p 42.4%
Goods and Services
17.4%
18.0%
Public Debt Servicing
10.5%
11.6%
Transfers and Grants
41.0%
30.8%
2011 to $18.2 million in 2012. This reduction in capital expenditure was the result of the completion of the Fisheries Complex in Barbuda. When the $23 million in capital grants for the Barbuda Fisheries project in 2011 is excluded, spending on capital projects actually increased by 20% from about $15 million in 2011 to $18 million in 2012.
A publication of the Ministry of Finance, the Economy and Public Administration , Issued: 28 March 2013 Certainty | Confidence | Credibility
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Public Debt Turning to public debt, total interest payments on central
Chart 3: Disbursed Outstanding Debt (EC$m)
government debt amounted to $74.7 million for the period
2,831.9
2,819.3
January to December 2012. Of this, $15.2 million was interest payments on external debt and $59.6 million on 1,639.2
1,629.4
domestic debt. For the period January to December 2012, external interest
1,189.9
1,192.7
Dec 2011
Dec 2012
payments declined by $8.4 million or 35.6% compared to the same period in 2011. Domestic interest payments increased by $20.2 million or 51.2% over the review period. Though total interest payments increased in 2012 when
Domestic
compared to the end of year in 2011, external interest payments fell due to continued rescheduling of external debt. The rise in domestic interest payments reflects Government’s
increased
activity
on
the
Regional
Government Securities Market (RGSM). The debt stock, which includes central government and government guaranteed debt, has remained stable at $2.8
External
Total Stock
billion between 2011 and 2012. This indicates Government’s success at reconciling arrears with its creditors. In addition, the Government was able to keep additional borrowing in line with actual repayments during the year so that the actual stock of debt in 2012 did not exceed the stock of debt in 2011.
Overall Fiscal Performance The overall fiscal performance for the period January to
2012, the Government paid $65 million to local contractors
December 2012 improved by 62.5% from a deficit of $91.3
and suppliers as part of its ongoing plan to reduce non-debt
million in 2011 to a deficit of $34.3 million in 2012.
domestic arrears.
The primary balance also improved by 242.9% from a deficit of $28.3 million in 2011 to a surplus of $40.5 million in
Chart 5: Revenue and Expenditure 2011 and 2012 Comparison (EC$m)
651.6
2012. This significant improvement indicates that the
642.0
Government was able to allocate about $40 million of revenues generated to cover some of its debt obligations, including interest payments, debt amortization, and the
603.8 597.4
repayment of non-debt domestic arrears (which includes unpaid balances due to local contractors and suppliers). The Government was able to finance its overall fiscal deficit
Total Recurrent Revenue
Total Recurrent Expenditure 2011
with financing from external and domestic sources. In
2012p
particular, the Government received financing of $71 million under the IMF Stand-by Arrangement and $98 million from securities issued on the Regional Government Securities Market. Remaining funds were used to amortise central government debt and reduce non-debt domestic arrears. In
The overall fiscal performance for the period January to December 2012 improved by 62.9% from a deficit of $91.3 million in 2011 to a deficit of $34.3 million in 2012.
A publication of the Ministry of Finance, the Economy and Public Administration , Issued: 28 March 2013 Certainty | Confidence | Credibility
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Table 2: Economic Classification of Government Finances
2011
2012p
2012 / 2011 $ change % change 21.0 3.4
TOTAL REVENUE AND GRANTS
623.3
644.2
Total Recurrent Revenue Di rect Tax Revenue Indi rect Ta x Revenue of which: ABST (gros s ) Sta mp Duty
597.4 85.7 466.7
642.0 97.5 500.3
44.7 11.8 33.6
7.5 13.7 7.2
197.0 29.0
220.3 39.1
23.3 10.0
11.8 34.6
45.0
44.3
(0.7)
(1.5)
25.9 22.9 3.0
2.2 0.0 2.2
(23.7) (22.9) (0.8)
(91.5) (100.0) (26.3)
TOTAL EXPENDITURE
714.6
678.5
(36.0)
(5.0)
Primary Expenditure Sa l a ri es a nd Wages Goods a nd Servi ces of which: Rent Tra vel
651.6 263.9 103.8
603.8 272.4 115.5
(47.8) 8.5 11.6
(7.3) 3.2 11.2
31.3 2.8
27.5 3.0
(3.8) 0.2
(12.1) 7.1
245.2 63.5
197.8 66.6
(47.4) 3.1
(19.3) 4.9
Tota l Capi ta l Expendi ture
38.7
18.2
(20.6)
(53.1)
Publ i c Debt Servi ci ng Externa l Interes t Domes ti c Interes t
63.0 23.6 39.4
74.8 15.2 59.6
11.8 (8.4) 20.2
18.7 (35.6) 51.2
CURRENT ACCOUNT BALANCE
(92.9)
38.3
131.2
141.2
PRIMARY BALANCE
(28.3)
40.5
68.8
242.9
OVERALL BALANCE
(91.3)
(34.3)
57.0
62.5
Non‐Ta x Revenue Total Capital Revenue and Grants Grants and Contri buti ons Ca pi ta l Revenue from Sa l e of As s ets
Trans fers a nd Gra nts of which: Pens i ons a nd gratui ti es
p means provisional
Totals may not add up due to rounding
Explanatory Notes
Contact Information
Central government refers to the activities of the Government excluding those for
For further information, please contact:
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. P means Provisional A publication of the Ministry of Finance, the Economy and Public Administration , Issued: 28 March 2013 Certainty | Confidence | Credibility
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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