During the mid-year budget communication in the House Of Assembly of Wednesday Prime Minister and Minister of Finance, the Hon. Philip Davis sought to explain the increase in revenue and expenditures in the first half of this budget year.

Government revenue for the first six months of this fiscal year is estimated at $1.4 billion an increase of $138.9 million. Total expenditures for the same time frame was $1.8 billion, an increase of $278.3 million. Mr. Davis said, “the positive outcome now it happened despite the recommendations from the IMF (International Monetary Fund) to raise the VAT rate to 15% in line with, what they call, my regional counterparts, hell to the no. Our unwavering commitment to improving VAT administration has contributed to these encouraging results.”

Recurrent expenditure totaled $1.6 billion, an increase of $192.3 million dollars over the previous fiscal year at this point. Mr. Davis highlighted public sector salaries as one of the reasons for the rise. He also said, “spending on the use of goods and services increased by $94.8 million to $346.6 million. Public debt interest payments were higher by $34.3 million and totaled $335.5 million. Subventions to public non-financial corporations drove the $16.6 million year-over-year increase in subsidies, which totaled $220.4 million. Further, other recurrent transfers increased by $31.3 million and accumulated to $132.9 million.”

The Prime Minister added, “while recurrent spending for this year is higher than the previous year it is important to note that all essential recurrent expenditures were carefully planned and incorporated into the 2024-2025 budget.”

Debate on the mid-year budget will begin in the House Of Assembly on Wednesday.