For 2018, the public sector’s total financial operations saw a reduced deficit due to an expansion in Central Government’s current revenues, but non-tax revenues declined by 23.8%, according to the Annual Report of the Bank of Guyana.
An 11.1% increase in total current revenue was recorded but this was mostly bolstered by tax collection.
An increase in total revenue to G$216,724 million was attributed to enhanced collection of value-added taxes (VAT) and excise taxes; income taxes from private corporations and personal taxes; greater earnings on trade taxes; and increased collection of other tax revenues.
Meanwhile, the report said non-tax revenues declined by G$5,699 million to G$18,212 million, due to a G$5,300 million reduction in other public department receipts, G$419 million reduction in Bank of Guyana surplus, and a G$299 million reduction in other private sector revenues even as rents and royalties, and fees, fines and charges increased by G$436 million, and G$133 million, respectively.
The report, which was submitted to Minister of Finance Winston Jordan on March 29th, specifically notes that VAT and excise taxes expanded by 15.2% to G$87,951 million due to a 13.2% increased collection of VAT and 18.6% increased collection in excise tax. Total VAT collection was G$48,181 million, while total excise taxes collected was G$39,680 million.
Meanwhile, as other local consumption taxes decreased by 70.7% to G$89 million, income tax revenues increased by 15.5 % to G$78,235 million.
Private companies’ income taxes, personal income taxes, and withholding taxes, in particular, expanded by 10.4 %, 19.1 %, and 38.8 % to G$38,576 million, G$25,808 million, and G$12,703 million, respectively, while public corporation taxes declined by 42.2 % to G$1,148 million.
Trade taxes in turn grew by 18.9% to G$21,986 million due to increased collection of import duties, travel tax, and export duties by 18.7%, 18.2%, and 44.9% to G$19,321 million, G$2,603 million, and G$33 million, respectively.
Other taxable current revenues, according to the report, increased by 20.4% to G$10,341 million with property and estate taxes growing by 22.2 % to G$4,421 million. Vehicle licensing, environmental levy, and other (professional fees, surtax, etc.) increased by 5.4%, 16.2%, and 7.9% to G$1,095 million, G$1,979 million, and G$1,626 million, respectively.
Revenues from other tax receipts amounted to G$1,220 million.
Total current expenditure, including debt charges, also increased by 10.1% to G$199,663 million, due to increases in non-interest current expenditures and interest charges by 10.3% and 6.0%, respectively.
In total, non-interest current expenditure grew by G$17,779 million to G$191,153 million, due to increases in transfer payments, employment costs, and other goods and services expenses by 15.4%, 9.2%, and 4.1%, respectively.
Due to greater payouts to subsidies and contributions to local and foreign organisations, pensions, and education subventions, grants and scholarships, transfer payments increased by G$10,719 million to G$80,412 million.
However, rates and taxes and subventions to local authorities fell by 39.8% to G$345 million.
Employment costs, the report notes, rose by G$5,030 million to G$59,474 million, reflecting developments in wages, salaries, and benefits of public servants, while purchases of other goods and services expanded by G$2,030 million to G$51,266 million.
There was also increased spending on materials and supplies by 6.2%, maintenance of infrastructures by 8.9 %, transport, travel and postage by 2.0%, fuels and lubricants expenses by 11.0 %, and miscellaneous goods and services by 7.3%.
On the other hand, rental and maintenance of buildings, electricity charges, and water charges declined by 2.4%, 15.0%, and 11.4%, respectively, even as interest charges rose by G$484 million to G$8,511 million. External interest charges specifically increased by 18.5% to G$7,178 million, while domestic interest costs declined by 32.4% to G$1,333 million due to lower interest payments on treasury bills and debentures.
