The Tribune

BY FAY SIMMONS

TRIBUNE BUSINESS REPORTER

jsimmons@tribunemedia.net

THE GOVERNMENT recorded a $36.7m fiscal surplus in April as revenues rose and spending fell, but remained $121.2m in deficit for the financial year, leaving it facing a significant gap to close before year-end.

The latest Ministry of Finance (MOF) monthly fiscal summary shows total revenue reached $363.3m in April 2026, an increase of $15.7m or 4.5 percent compared with the same month last year, while total expenditure fell by $24.4m or 6.9 percent to $326.6m.

The resulting $36.7m surplus was a sharp improvement over the $3.4m surplus recorded in April 2025.

However, the stronger monthly performance has not yet reversed the Government's overall fiscal position, with revenue for the year to date standing at $2.915bn against expenditure of $3.036bn, producing a $121.2m deficit.

The Government's full-year budget provides for a $72.5m fiscal surplus, meaning the year-to-date position must improve by nearly $194m to reach that target.

Revenue growth in April was led by value added tax (VAT), which generated $177.9m, up $16.7m or 10.4 percent compared with April 2025.

Taxes on international trade and transactions also increased by $8.7m or 11.2 percent to $87m, with the Ministry reporting that nearly 60 percent of the increase came from departure taxes.

The revenue gains came despite a $2.9m or 1.2 percent decline in tax revenue overall, which fell to $322.9m. The impact was offset by an $18.7m or 86.5 percent increase in non-tax revenue to $40.3m.

The sharpest decline was recorded in taxes on the use of and permission to use goods, which fell by $25.1m or 50.2 percent. The MOF said receipts from licences to conduct specific business activities dropped by $31.1m or 66.3 percent.

On the expenditure side, recurrent spending fell by $41.2m or 12.4 percent to $291.3m.

The reduction was driven in part by a $20.3m or 52 percent decline in other payments, which the MOF attributed largely to lower insurance premiums and transfers.

Debt interest payments also fell by $11.8m or 13.3 percent to $76.6m, while spending on goods and services declined by $8.6m or 12.5 percent.

At the same time, capital expenditure increased sharply, rising by $16.8m or 91.2 percent to $35.3m in April.

For the year to date, capital expenditure has reached $307m, equivalent to 81.6 percent of the $376.3m full-year budget.

The fiscal report also shows substantial financing activity during April, with the Government borrowing $372.1m while repaying $375m, resulting in a net reduction of $2.9m in outstanding debt.