SVG fiscal position shows improvement

The out-turn of the Central Government’s fiscal operations for the year 2008, up to the end of April, shows continuous improvement, a release from the Office of the Prime Minister says.{{more}}

According to the release, the fiscal condition of the Central Government for the first four months of the 2008 are “A significant improvement over that of the comparable period last year 2007, which in itself was better than in 2006”.

The release said that total revenue and grants increased by 29.9 percent from EC$124.9 million from January-April 2007 to EC$162.4 million in January-April 2008. Of this total, current revenue rose by 21.3 percent, from EC$124.6 million in January-April 2007 to EC$151.2 million in the comparable period this year. The component grants, increased by over 7000 percent, from EC$150,000 in the same period, to EC$10.8 million in JANUARY-April 2008.

“Total expenditure increased by 3.6 percent, from EC$147.5 million in January-April 2007 to 152.8 million in the period under review. Of this, recurrent spending increased by 13.3 percent from EC$118.6 in January-April 2007 to EC$134.4 million in the same period this year. Capital spending in the comparable period in 2008 declined from EC$28.9 in 2007 to EC$18.5 million in 2008. Last year there was significant spending in the period January to April, on the Arnos Vale Cricket facility, in preparation for the World Cup warm up games,” the release said.

According to the release, the main items of the increase in recurrent expenditure in January-April 2008 are as follows: (i) Personal Emoluments (salaries, NIS payments and pensions) 15.9 percent (ii) Transfers and Subsidies 23.4 percent (iii) Goods and services, 31.3 percent.

Interest payments by the government in this period declined by 23.8 percent.

The release said that the Current Account balance in the period January-April 2008 showed a healthy surplus of EC$16.8 million or an increase 178.3 percent over the figure of EC$6.04 million in the comparable period for 2007.

The overall Balance moved from a deficit of minus EC$22.5 million to an impressive positive balance of EC$9.6 million in the comparable period for 2008.