Minister of Finance Camillio Gonsalves presented the Estimates of Revenue and Expenditure for the fiscal year 2018, in Parliament this morning, which amount to 993-million, 535-thousand 449 dollars.
This year’s budget is a 1.7 percent increase over the approved budget for 2017.
Minister Gonsalves said the 2018 Budgetary Estimates comprises Recurrent Expenditure inclusive of Amortization and Sinking Fund Contributions of 776 million, 879 thousand, 739 dollars, and Capital Expenditure of 216 million, 656 thousand and 710 dollars.
He said the 2018 Budget is financed by Current Revenue of 621-million, 658-thousand, 138 dollars and Capital Receipts totaling 371 million, 877 thousand, 312 dollars.
The Current Expenditure, exclusive of Amortization and Sinking Fund Contributions, is 617 million, 421-thousand, 847 dollars.
According to Minister Gonsalves, the Current Revenue estimate for 2018 is 5.2 percent or 13 million dollars higher than the Current Revenue for 2017.
He said there is a modest current account surplus of 4.2 million dollars in the 2018 Estimates.
The Finance Minister noted that revenue from tax sources is expected to yield 532 million dollars, while non-tax revenue is estimated to yield 89.7 million dollars.
“The improvement in the revenue performance in 2018 is reflective of the modest real economic growth projected for the year and the planned improvements in administration at the main revenue collection agencies,” Minister Gonsalves said.
He disclosed that in 2018, tax revenue is projected to grow by 5.2 percent, and all major tax types are expected to contribute to this performance.
“Taxes on income and profits is estimated to increase by 10.8 million dollars or 7.4 percent; taxes on Property is projected to rise by 16.4 percent or 7.1 million dollars; taxes on goods and services are expected to go up by 4.8 million dollars or 2.9 percent; and taxes on international trade and transactions by 1.5 percent or 2.2 million dollars,” the Finance Minister explained.
According to the Minister, 88 percent of the total revenue will be generated from these four principal sources with taxes on goods and services expected to yield 170.1 million dollars, taxes on international trade and transactions-151.9 million dollars, taxes on income and profits 155.8 million dollars, and taxes on sales of goods and services-67 million dollars.
Non-tax revenue collection is budgeted at 89.6 million dollars for 2018. This figure is 5.2 percent more than the sum budgeted in 2017.