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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 

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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%

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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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Fiscal and Economic Review Jan -Sep 2012  

Review of Government’s Fiscal Operations for the period January to September 2012

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