BERT targets met

WHILE Government has had some challenges with its revenue and expenditure, it has nonetheless met some of the targets set under the Barbados Economic Recovery and Transformation (BERT) programme with the International Monetary Fund (IMF).

At the same time, the Fund has agreed with a request from the Government to modify performance criteria for the period December 2019 to March 2020, the resetting of four structural benchmarks and the introduction of another.

These positions were outlined yesterday by the Monitoring Committee of the BERT programme for the period to December 31, 2019.

“While revenue collection fell short of the target under the BERT Plan, expenditure was contained, which allowed the primary minimum target of $439 million to be exceeded by a significant margin achieving a $511 million primary balance,” said the Committee comprising businessmen and trade union representatives.

“The primary balance target for the fiscal year April 1, 2019 to March 31, 2020 is $630 million, and the generation of a primary balance of $511 million in the first three quarters is a significant step towards the full-year goal,” said the Committee.

Total revenue for the nine months to December 2019 was $2 139 million, representing a shortfall of $56 million compared to the plan. This, the Committee said, represents an increase of $78 million.

The Committee explained that the shortfall stemmed from lower corporation taxes due to lower profits realised by some businesses following the domestic debt restructuring, and a fall in the banks’ asset tax.

However, it was offset by the increased land taxes and higher income tax collections.

It was noted too that at $1 219 million, indirect tax revenue was $51 million or four per cent below the BERT target of $1 270 million, although these taxes surpassed the amount collected for 2018.

According to the Committee, all areas of indirect taxation with the exception of the fuel tax, reflected shortfalls versus expectations.

Those taxes showing lower revenues were VAT, import duties and excise taxes, which the Committee said stemmed from issues related to the ASYCUDA World. Tourism-related taxes and levies also fell.

“Total expenditure was $1 818 million, some $143 million below the BERT target and $169 million or 8.5 per cent less that the prior year period,” the Committee added.