2019/20 Budget Communication Final Budget Communication | Page 32

47.8 percent to $122.5 million in the ten months to April, as compared to the same period of the
previous fiscal year. That is correct, Mr. Speaker, the fiscal deficit was nearly halved in the first
ten months of the fiscal year.
A breakdown by component revealed that the spike in total revenue was buoyed by a
$245.0 million, or 16.1 percent, improvement in tax revenue to $1.8 billion, as receipts from stamp
taxes on financial and realty transactions more than doubled to $181.3 million, reflecting the
conversion of taxation from VAT to stamp tax. Revenue from VAT grew by $123.5 million, or
21.5 percent to $699.3 million, reflecting the rate increase, from 7.5 percent to 12 percent.
Likewise, earnings from the use of goods grew by $51.5 million or 34.8 percent to $199.3 million,
while more muted gains were posted for departure taxes and taxes on property, at $6.8 million and
$2.8 million, respectively. In contrast, the total intake from excise taxes declined by $25.5 million
or 11.6 percent to $193.7 million over the period, with revenue from customs and other import
duties falling by $9.2 million or 3.9 percent to $228.7 million. Non-tax revenue firmed by $27.6
million or 17.6 percent to $184.7 million.
As for expenditure, recurrent spending rose by $216.0 million or 12.6 percent to $1.9
billion, due to a $111.2 million increase in spending on the use of goods and services, which
includes arrears payments. To date, we have paid a total of $126.9 million in arrears, representing
approximately 73.8 percent of the $172 million that we budgeted to settle during the 2018/19
Budget year. In addition, spending on subsidies advanced by $54.7 million to $312.7 million,
while other transfers—inclusive of social assistance benefits, grants and other payments—grew by
$41.5 million to $235.5 million.
For its part, spending on the compensation of employees tapered by $28.9 million or
4.8 percent to $576.9 million, reflecting more precise budgeting, as opposed to a decrease in the
total headcount. To elaborate, in fiscal year 2017/2018, $790.4 million was budgeted for employee
compensation, though only $737.5 million was spent, representing 93.3 percent of the budgeted
amount. At the ten-month mark last year, only 76.6 percent of the budgeted amount had been
spent.
Thus, in an effort to apply more prudent and accurate budgeting, in fiscal year 2018/19
expenditure in this area was constrained to meet its historical trends, as it usually comes in lower
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