Government revenues up nearly 10 percent year-over-year for August

NASSAU, BAHAMAS — Government revenues for the month of August saw a nearly 10 percent increase year-over-year, although the performance amounted to a 24 percent decrease compared to the previous month, according to the Ministry of Finance. 

The Ministry of Finance in its monthly fiscal report on the government’s operations for the month of August said revenues decreased by $62.6 million in a month-by-month comparison. The minister said this was largely due to trends of lower VAT receipts ($50.6 million) for August relative to July as domestic consumption eases with more summertime traveling.

“During the month, revenues increased by 9.4 percent ($17.0 million) to $197.8 million compared  to the prior year,” the report read.

“The improved performance is largely attributed to an increase in revenue collection from international trade and transaction taxes ($12.4 million), other taxes on goods and services ($5.2 million), sale of goods and services ($5.9 million), and VAT receipts ($3.9 million).  However, month-over-month, revenues decreased by 24.0 percent ($62.6 million) largely due to seasonal trends of lower VAT receipts ($50.6 million) for August relative to July as domestic consumption eases with more summertime traveling,” the Ministry of Finance reported.

It was also noted that total expenditure increased by 6.9 percent ($15.3 million) to $237.4 million compared to the prior year, owing to increased outlays on the use of goods and services ($10.2 million) and subsidies  ($12.9 million). 

“As economic activity further trend to pre-COVID levels, COVID-19 specific social assistance payments were lower ($9.7 million), year-over-year. Compared to the prior month, August 2022 expenditure increased by 8.4 percent ($18.4 million) mostly due to additional disbursements for the acquisition of non-financial assets ($21.3 million).

As a result of the above, Government’s fiscal position for August 2022 resulted in a $39.7 million deficit and an increase in the net debt position by $8.0 million,” the Ministry of Finance reported.