Sat | Oct 20, 2018

Economic Oversight Committee worried about Gov't's under spending

Published:Tuesday | December 9, 2014 | 6:53 PM

The Economic Programme Oversight Committee (EPOC) says it is concerned that the Government has been persistently under spending to achieve the primary surplus target.

The Committee, which monitors Jamaica's four-year programme with the International Monetary Fund (IMF), says its review of the April to October period shows that the Government expenditure was $12.5 billion below budget.

The committee points out that over the period the country recorded a cumulative primary surplus of $45.5 billion.

EPOC notes that this is higher than the 42.7 per cent which was budgeted for the period.

Details of the performance of the economy are contained in a communiqué issued by EPOC today.

Meanwhile, EPOC is reporting that between April and October tax revenues for the period fell short by $7.4 billion.

It points out that the shortfall is primarily due to underperformance of Company Tax and General Consumption Tax.

EPOC notes that the Government had set out to collect $204 billion in tax revenue between April and October, however, it pulled in $196.6 billion.

Meanwhile, EPOC disclosed that the country's fiscal deficit stood at $26.8 billion, which was better than the budgeted deficit of $33.1 billion.

It says the Net International Reverses stood at US$2.019 billion at the end of the November.

While noting that this surpasses the IMF’s December target of US$560 million, it expects this amount to reduce as the government pays down the debt.

The Committee points out that in October the government paid debts associated with €150 million bond.


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