Review
Government of Antigua and Barbuda
January to September 2012
Highlights Compared to first nine months of 2011:
Total recurrent revenue increased by 20.7%
Revenue from ABST increased by 15.6%
Total expenditure decreased by 40.5%
Primary balance improved by 126.3%
Revenue Performance An analysis of revenue performance shows total revenue and
2012, this improvement in revenue from the ABST is
grants amounted to $466.2 million, a $3.1 million decline
attributed to modest improvement in economic activity,
compared to the same period last year. The main contributor
increased compliance, and other revenue reform initiatives.
to this decline was the lack of capital grants during 2012 compared with $25.8 received in 2011.
For the period under review, revenue from Stamp Duties rose from $19.4 million to $34.3 million. This 77.0%
On the other hand, current revenue increased by 4.7% from
increase in revenue from this source is also indicative of
$444.0 million for the period January to September 2011 to
some recovery in economic activity.
$464.7 million for the same period in 2012. Also, tax revenue for the period under review was $31.3 million or 7.7% greater than tax revenue collected over the same period in 2011.
For January to September 2012 the Personal Income Tax (PIT) continued to perform better than the corresponding period in 2011. Revenue from the PIT grew by $5.5 million or 20.4% from $26.9 million at the end of September 2011
Contributing to this increase in tax revenues is the ABST,
to $32.4 million at the end of September 2012. The change
which generated $159.6 million, an increase of $15.6 million
in the PIT base to include allowances and benefits is
over the same period last year. Similar to the first half of
responsible for this improvement in revenue intake.
Chart 1: January to September Comparison of Recurrent Revenue (EC$m)
338.8
69.2
365.8
73.5 36.0
Direct Tax Revenue
Indirect Tax Revenue Jan to Sep 2011
25.4
Non‐Tax Revenue
Jan to Sep 2012P
A publication of the Ministry of Finance, the Economy and Pubic Administration , Issued: 30 November 2012 Resolved to Transform | Determined to Deliver
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Expenditure Performance On the expenditure side, total expenditure declined by $40.5
Chart 2: January to September Comparison for Recurrent Expenditure (EC$m)
million from $553.2 million for the period January to September 2011 to $512.7 million for the same period in
189.3
million for the first nine months of 2011 to $458.4 million
203.4
Primary expenditure declined by $40.5 million from $498.9
196.7
2012.
161.6
over the same period in 2012. Primary current expenditure fell by $19.1 million, from $465.7 million for the period January to September 2011 to $446.7 million for same period in 2012.
capital
projects.
It
excludes
interest
payments
79.7
salaries, goods and services, pensions, other transfers, and on
81.7
Primary expenditure includes expenditure on wages and
Government debt. On the other hand, primary current expenditure excludes expenditure on capital projects as well as interest payments on Government debt.
‐
contributors to the decline in primary expenditure as they fell
‐
Other transfers and capital expenditure were the main by $25.1 million or 18.9% and $21.4 million or 64.5% respectively. Expenditure on other transfers was reduced
Overtime payments dropped significantly by 64.6% from $9.9 million in the first nine months of 2011 to $3.5 million in the first nine months of 2012. because the assistance provided by the Government to ABI Bank in 2011 was not required in 2012. With respect to capital expenditure, rationalization of expenditure with revenue and the completion of the Japanfunded Fisheries Complex in Barbuda accounted for the decline. In addition, overtime payments dropped significantly by 64.6% from $9.9 million in the first nine months of 2011 to $3.5 million in the first nine months of 2012.
Goods and Services
Jan to Sep 2011
Capital Transfers and Expenditure Grants Jan to Sep 2012P
As indicated in the last review, the increase in this item was due to employment of new teachers and upgrades to salaries and allowances for staff in various Government departments. Pensions and gratuities also increased by $3.7 million from $50 million to $53.7 million over the period under review. This increase reflects the impact of attrition within the public sector. Further, expenditure on goods and services grew by $2.0 million or 2.5%. This is due mainly to a 46% increase in expenditure on road maintenance from $1.5 million in the first nine months of 2011 to $2.2 million for the same period in 2012.
This was
achieved through continued implementation of measures to curtail expenditure. Minor movements were experienced in other components of primary current expenditure. For instance, salaries and wages increased by $6.6 million from $196.7 million in the period January to September 2011 to $203.4 million for the same period in 2012.
Salaries and Wages
Table 1: Selected Expenditure Items as a Percentage of Recurrent Revenue
Jan to Sep 2011
Jan to Sep 2012P
Salaries and Wages Goods and Services
44.3% 18.0%
43.8% 17.6%
Public Debt Servicing
12.2%
11.7%
Transfers and Grants
42.6%
34.8%
A publication of the Ministry of Finance, the Economy and Pubic Administration , Issued: 30 November 2012 Resolved to Transform | Determined to Deliver
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Public Debt Turning to public debt, total interest payments on central government debt amounted to $54.3 million for the period
Chart 3: Disbursed Outstanding Debt (EC$m)
January to September 2012. Moreover, total interest
1,629.6
1,629.4
obligations remained relatively flat over the first nine 1,189.9
months in 2012 when compared to the same period in 2011.
1,162.5
Our total interest payments on external and domestic debt amounted to $11.3 million and $43 million respectively. For the period January to September 2012, external interest payments declined by 63.1% compared to the same period
Dec 2011
in 2011, due to external debt rescheduling. However,
Sep 2012 Domestic
domestic interest payments increased by $19.4 million or
External
82.2% over the review period. The growth in domestic interest payments reflects Government’s increased activity
government debt at September 2012 decreased by $1.0m
on the Regional Government Securities Market (RGSM).
from December 2011. This indicates Government’s success at
The debt stock at September 2012, which includes central
reconciling arrears with its creditors.
government and government guaranteed debt, declined by $27.2 million from December 2011. Moreover, central
Overall Fiscal Performance Looking at our overall fiscal performance for the period
a 44.6% improvement when compared to the overall deficit
January to September 2012, total revenue and grants fell
of $83.9 million for the period January to September 2011.
slightly by 0.7% while total expenditure was
The overall deficit was financed with a portion of the
reduced by
7.3%. Since expenditure was reduced at a faster rate than
disbursements under the
the decline in revenue, the Government was able to realize
proceeds
an improvement in the overall fiscal balance. For the period
Government Securities Market (RGSM). Remaining funds from
under review, the primary balance improved by 129% from
these
a deficit of $29.6 million in 2011 to a surplus of $7.8 million
government debt and reduce arrears to domestic suppliers
in 2012. When interest payments are taken into account,
and contractors.
from
IMF Stand-By Arrangement and
treasury bills
disbursements
were
issued on
used
to
the
Regional
amortise
central
the result is an overall fiscal deficit of $46.5 million. This is
Chart 4: Primary Balance (EC$m)
Chart 5: Revenue and Expenditure January to September Comparison 2011 and 2012 (EC$m)
7.8
498.9
464.7
458.4
444.0
(29.6) Total Recurrent Revenue
Jan to Sep 2011
Total Recurrent Expenditure
Jan to Sep 2012P Jan to Sep 2011
A publication of the Ministry of Finance, the Economy and Pubic Administration , Issued: 30 November 2012 Resolved to Transform | Determined to Deliver
Jan to Sep 2012P
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Table 2: Economic Classification of Government Finances
Jan to Sep 2011
Jan to Sep 2012P
Jan to Sep 2012 / Jan to Sep 2011 $ change % change (3.1) (0.7)
TOTAL REVENUE AND GRANTS
469.3
466.2
Total Recurrent Revenue Direct Ta x Revenue Indi rect Ta x Revenue of which: ABST (gros s ) Sta mp Duty
444.0 69.2 338.8
464.7 73.5 365.8
20.7 4.3 27.1
4.7 6.2 8.0
144.0 19.4
159.6 34.3
15.6 14.9
10.8 77.0
36.0
25.4
(10.6)
(29.4)
28.2 25.8 2.5
1.5 0.0 1.5
(26.7) (25.8) (1.0)
(94.7) (100.0) (38.9)
TOTAL EXPENDITURE
553.2
512.7
(40.5)
(7.3)
Primary Expenditure Sa l a ri es a nd Wa ges Goods a nd Servi ces of which: Rent Tra vel
498.9 196.7 79.7
458.4 203.4 81.7
(40.5) 6.6 2.0
(8.1) 3.4 2.5
19.7 2.5
20.4 2.6
0.7 0.2
3.7 7.6
189.3 50.0
161.6 53.7
(27.7) 3.7
(14.6) 7.4
Tota l Ca pi ta l Expendi ture
33.2
11.8
(21.4)
(64.5)
Publ i c Debt Servi ci ng Externa l Interes t Domes ti c Interes t
54.3 30.8 23.6
54.3 11.3 43.0
(0.0) (19.4) 19.4
(0.0) (63.1) 82.2
CURRENT ACCOUNT BALANCE
(88.1)
6.3
94.4
107.1
PRIMARY BALANCE
(29.6)
7.8
37.4
126.3
OVERALL BALANCE
(84.0)
(46.5)
37.4
44.6
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
Tra ns fers a nd Gra nts of which: Pens i ons a nd gra tui 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. R means Revised P means Provisional A publication of the Ministry of Finance, the Economy and Pubic Administration , Issued: 30 November 2012 Resolved to Transform | Determined to Deliver
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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