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Government of Antigua  and Barbuda 

Review 

Quarterly 

January to March 2013 

Highlights 

The overall fiscal performance improved for the period January to March 2013 compared to the same period in 2012



Total revenue decreased marginally and total expenditure decrease significantly.

Revenue Performance An analysis of revenue performance shows total revenue

real estate sector and, in particular, a major transaction

and grants amounted to $159.8 million, a 3.4% or $5.5

related to the expansion work at the Jumby Bay Resort.

million decrease compared to the first quarter in 2012. The

In the first quarter of 2013, revenue from Stamp Duties

main component of total revenue is current revenue, which

amounted to $5 million, which is 74% less than the same

fell by 3.3% from $165.0 million in 2012 to $159.6 million

period in 2012. On the other hand, the ABST remained

for the period under review. The decline in tax revenue is

relatively flat at about $53 million while revenue from

due to a significant decline in revenue from Stamp Duties

Property Tax declined by about 1% from $4.8 million in

and the reallocation of the Passenger Facility Charge,

the first quarter of 2012 to $4.7 million in 2013 .

Embarkation Tax (in the form of the Airport Administration Charge) and the Cruise Passenger Tax from Central

There was a 170.8% increase in revenue from the

Government to the Airport Authority and the Antigua Pier Group.

Corporate Income Tax from $6.5 million in the first quarter of 2012 to $17.6 million in the first quarter of 2013. This increase was a result of the Inland Revenue

Revenue from Stamp Duties amounted to $19.2 million in

Department’s efforts to collect Corporate Income Tax

the first quarter of 2012, reflecting increased activity in the

arrears. The Customs and Excise Department also collected arrears of about $10 million in respect of the Oil

Chart 1: Comparison  of Recurrent  Revenue (EC$m)

132.1  118.4 

Import Levy, which resulted in a 100% increase in revenue from this source compared to 2012. Likewise the Personal Income Tax, Import Duty and

Revenue Recovery Charge continue to be buoyant. Revenue from the Personal Income Tax increased by 18% from $9.8 million in the first quarter of 2012 to $11.6 million over the same period in 2013. Further, the 34.1 

Import Duty grew by 4.3% from $18.5 million in first

23.9  8.9  7.0  Direct Tax Revenue Indirect Tax Revenue

Jan ‐ Mar 2012

Non‐Tax Revenue

Jan ‐ Mar 2013 

  A publication of the Ministry of Finance, the Economy and Pubic Administration   Issued: 4 July 2013

quarter of 2012 to $19.3 million over the same period in 2013 while the Revenue Recovery Charge increased slightly to $16.5 million in the first quarter of 2013. Overall, the falloff in revenue from the Stamp Duties was more than offset by the increased revenue generated 1


Expenditure Performance Total expenditure decreased by 23.8% or $ 41.1 million from $172.6 million for the period January to March 2012

Chart 2:  Recurrent  Expenditure  (EC$m)

expenditure and capital expenditure, was reduced by

57.8 

Primary expenditure, which comprises primary current

65.7 

66.8 

to $131.5 million for the same period in 2013.

24.0% or $36.1 million from $150.4 million in 2012 to $114.3 million in 2013. Moreover, primary current expenditure, which includes wages and salaries, goods

quarter 2013. The main contributor to the decline in primary current expenditure is spending on other

2.1 

transfers, which fell by 64.4 % from $30.3 million in 2012 to $10.8 million at the end of the first quarter 2013. This

1.3 

quarter of 2012 to $113.0 million at the end of the first

16.5 

23.6 

$35.3 million from $148.3 million at the end of the first

30.8 

and services, pension, and other transfers declined by

is largely a result of the timing of transfer payments to Salaries and  Wages

statutory corporations. There were decreases in other components of primary

Goods and  Services

Jan ‐ Mar 2012

current expenditure. Wages and salaries fell by 1.6%

Capital  Transfers and  Expenditure Grants Jan ‐ Mar 2013 

from $66.8 million at the end of the first quarter of 2012 to $65.7 million at the end of first quarter of 2013. Expenditure on goods and services fell by 30.1% from $23.6 million in 2012 to $16.5 million in 2013. The significant reduction in expenditure in the first quarter of 2013 compared to the same period in 2012 was a result of the Government’s efforts to curtail expenditure in light of lower than budgeted revenue performance. Also, the fact that the budget for 2013 was passed in late January 2013 meant that the Ministries did not have access to much of their budgetary allocations until February 2013.

Recurrent revenue

Chart 3: Revenue and  Expenditure  Comparison  (EC$m)

165.0 

159.5 

decreased by $5.6m

150.3 

(3.4%) and primary 114.3 

current expenditure

decreased by $35.3m (23.8%) for the period January Total Recurrent Revenue Jan ‐ Mar 2012

Total Recurrent Expenditure

to March 2013

Jan ‐ Mar 2013 

  A publication of the Ministry of Finance, the Economy and Pubic Administration   Issued: 4 July 2013

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Revenue Performance cont’d from sources such as the Corporate Income Tax, Personal Income Tax, and Import Duty. However, the total collection for the first quarter in 2013 was less than collections for the same period in 2012 due to the absence of revenue from the Passenger Facility Charge, Embarkation Tax, and the Cruise Passenger Tax. These taxes generated about $15 million in the first quarter of 2012. Turning to Public Debt, the total interest payments on

Public Debt

Government’s Public Sector Debt (which includes the central government and government guaranteed debts)

Chart 4: Debt Interest  Payments (EC$m)

amounted to $26 million for the period January to March

26.0 

payments on Government public Sector debt were $24.8

2013. Over the same period in 2012, total interest million. Of the $26 million in interest payments made in 2013,

15.8

$17.2 million or 66.2% represents Central Government payments and $8.8 million or 33.8% represents interest payments on Government guaranteed debt. Of the $17.2 million in interest payments on Central Government debt, $12.4 million or 72.1% was paid to domestic creditors while $4.9 million or 27.9% was paid to external creditors.

Dec 2012

This compares to interest payments of $12.2 million on

Jan to Mar 2013p

domestic debt and $3.6 million on external debt in 2012. Total interest payments were 4.7% higher in 2013 when compared to the same period in 2012. This was mainly driven by a 36% increase in external interest payments. The growth in external interest payments can be attributed primarily to the regular servicing of Bilateral Paris Club debt, Bilateral Non-Paris Club debt, and multilateral debt, especially to the Caribbean Development Bank. The total debt stock, which includes central government and government guaranteed debt balances and arrears, declined by 1.1% from $2.83 billion at the end of the first quarter of 2012 to $2.8 billion for the same period in 2013.

Overall Fiscal Performance

Chart 5: Comparison  of Overall Balance (EC$m)

The overall fiscal performance for the period January to March 2013 improved by 501.8% from a deficit of $7.0

28.3 

million in 2012 to a surplus of $28.4 million in 2013. The primary balance also improved by 200.7% from a surplus of $15.2 million in 2012 to a surplus of $45.7 million in 2013. This significant improvement indicates that the Government was able to allocate about $28 million of revenues generated to cover some of its debt obligations,

including

interest

payments,

debt

amortization, and the repayment of non-debt domestic arrears (which includes unpaid balances due to local

(7.1) Jan ‐ Mar 2012

Jan ‐ Mar 2013 

contractors and suppliers).   A publication of the Ministry of Finance, the Economy and Pubic Administration   Issued: 4 July 2013

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Table 2: Economic Classification of  Government Finances

Jan ‐ Mar  2012

Jan ‐ Mar  Jan to Mar 2013 / Jan to  2013 Mar 2012 $ change  % change            (5.8)              (3.5)

TOTAL REVENUE AND GRANTS

165.5

159.8

Total Recurrent Revenue Direct Ta x Revenue Indi rect Ta x Revenue of which: ABST (gros s ) Sta mp Duty

165.0 23.9 132.1

159.5 34.1 118.4

(5.5) 10.2 (13.7)

(3.4) 42.5 (10.4)

53.2 19.2

53.0 5.0

(0.2) (14.1)

(0.4) (73.8)

8.9

7.0

(2.0)

(21.9)

0.5 0.0 0.5

0.3 0.0 0.3

(0.2) 0.0 (0.2)

(44.2) 0.0 (44.2)

TOTAL EXPENDITURE

172.6

131.5

(41.1)

(23.8)

Primary Expenditure

150.3 66.8 23.6

114.3 65.7 16.5

(36.1) (1.1) (7.1)

(24.0) (1.6) (30.3)

7.2 0.8

7.6 0.5

0.4 (0.2)

5.6 (32.5)

57.8 20.9

30.8 13.6

(27.0) (7.4)

(46.7) (35.2)

2.1

1.3

(0.8)

(38.6)

22.2 5.9 16.3

17.3 4.9 12.4

(5.0) (1.1) (3.9)

(22.5) (17.7) (24.2)

CURRENT ACCOUNT BALANCE

(5.5)

29.3

34.7

633.8

PRIMARY BALANCE

15.2

45.5

30.3

199.9

OVERALL BALANCE

(7.1)

28.3

35.3

499.8

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

Sa l a ri es  a nd Wa ges Goods  a nd Servi ces of which: Rent Tra vel Tra ns fers  a nd Gra nts of which:  Pens i ons  a nd gra tui ties Tota l  Ca pi ta l  Expendi ture Publ i c Debt Servi ci ng Externa l  Interes t Domes ti c Interes t

Explanatory Notes Central government refers to the activities of the Government excluding those for 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.

  A publication of the Ministry of Finance, the Economy and Pubic Administration   Issued: 4 July 2013

For further information, please contact: 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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Antigua and barbuda fiscal performance january to march 2013