Total revenue grew by nearly eight per cent in Q1 of fiscal year 2019/2020

Total revenue grew by nearly eight per cent in Q1 of fiscal year 2019/2020

NASSAU, BAHAMAS – Total government revenue for the first quarter of fiscal year 2019/2019 increased by nearly eight per according to quarterly fiscal report by the Ministry of Finance.

According to the Ministry of Finance’s first quarter budget performance snapshot and fiscal report, “During the first quarter, total revenue increased by $38.9 million or 7.6 per cent to $552.7 million, relative to FY2018/19, which represented 21. per cent of the budgeted amount.

Tax receipts, at 21.3 per cent of the budget, expanded by $26.8 million or 5.7 per cent  to $498.6 million, and the non-tax component grew by $12.0 million or 28.5 per cent to $54 million, for a lesser 18.9 per cent of the target.”

The report also noted that VAT receipts grew by $66.8 million or 33.5 per cent to $266.2 million, representing 24.2 per cent of the budget.

“This was due largely to the shift in the basis for assessment of taxes on several realty transactions, to VAT from stamp duties.

Correspondingly, revenue from stamp taxes on financial and realty transactions contracted by $43.8 million or 80.5 per cent to $10.6 million, which equated to 10.4 per cent of the budget.”

The report further noted that excise taxes rose by $4.4 million and that gaming taxes increased by $2.2 million to $8.4 million, “partly reflecting the new tax regime for gaming operators following the court settlement in February 2019.”

Government burrowed $162.6 million over the fiscal quarter to fund its budgetary operations, when compared with $280.0 million over the first quarter of FY2018/19.

“Of the total, US$26.9 million represented loans from international development agencies, including the first $25 million drawdown on the US$100 million Inter-American Development Bank (IDB) contingent credit facility to assist with hurricane relief efforts.  An additional $3.0 million was borrowed via domestic bank loans, $29.7 million was sourced by way of Treasury bills, and the remaining $103 million via bond issuances,” the report stated.