Government earns over EC$171 million in first 2 months

by Linda Straker

• EC$33 million earned from Citizenship by Investment programme
• Increase of almost EC$5 million from Employee Compensation
• Government added almost 600 pensioners to payroll as of January 2023

The Government’s collective revenue for the months of January and February 2023 was EC$171.3 million and according to the fiscal reports for the same period, EC$33 million was earned from the Citizenship by Investment (CBI) programme.

According to the report, Government’s highest revenue earning continues to come from taxes on International Transactions, followed by Non-Tax Revenues. As of January 2023, the revenue from the Citizenship by Investment programme was included as non-tax revenue and the reports show that collectively for both months, the Government earn EC$33 million from CBI. The amount in January was EC$18.0 million, and for February it was EC$15.0 million. The fiscal reports are showing that Government’s current revenue was more than the projected amount, but at the same time, grants received were less than targeted. Collectively for both months, the revenue collected was EC$171.3 million.

“Current Revenue for January 2023 was $87.5 million, which was $4.2 million more than the 2023 target and $0.2 million less than the collections for January 2022. Total Grants in January 2023 amounted to $1.0 million which was $2.3 million less than the target and $4.9 million less than the actual in January 2022,” said the January fiscal report, uploaded to the Ministry of Finance’s website in late March 2023.

For February, the report said that the Current Revenue was $83.8 million, which was $11.6 million more than the 2023 target and $25 million more than the collections for February 2022 and total Grants in February 2023 amounted to $0.5 million, which was $4 million less than the target and $6 million less than the actual in February 2022.

In the area of expenditure, the January fiscal report said that the total current Expenditure, excluding principal repayments for the month of January, was $48.7 million which was $7.1 million less than the $55.8 million targeted. “Capital Expenditure in January 2023 was $13.9 million, $3.8 million less than the amount spent in January 2022 and below the $15.3 million targeted for the month this year,” said the report which explained that a primary balance (including grants) of $28.7 million was recorded for the month of January 2023.”

That amount was $10.5 million more than the month’s target and $2.9 million less than the amount recorded in January 2022. Principal Repayments on Debt for January 2023 were $22.2 million, while interest payments totalled $2.8 million.

For February, the total Current Expenditure, excluding principal repayments, was $63.9 million, which was $2.8 million more than the $61.1 million targeted. “Capital Expenditure in February 2023 was $14.6 million, $6.0 million less than the amount spent in February 2022 and below the $20.9 million targeted for the month this year,” said the February fiscal report. It further explained that t primary balance (including grants) of $8.6 million was recorded for the month of February 2023, which was $11.7 million more than the month’s target and $13.5 million more than the amount recorded in February 2022.  Principal Repayments on Debt for February 2023 were $3.1 million, while interest payments totalled $2.8 million.

The reports also show that Government had an increase of almost EC$5 million in the area classified as Employee Compensation (Wages, Salaries, Allowances and Employees’ Social Contributions) as compared to 2022. In January 2022, it was EC$22.9 million, while in 2023 it was EC$26.5 million. In February 2022, it was E$23.0 million but was EC$27.9 million in February 2023. The government has added almost 600 pensioners to its payroll as of January 2023.