Government’s Outturn April To June 2011 Positive

Government Release

Chris Sinckler, Minister of Finance

Current Revenue

21. Information received from the Accountant General indicates that current revenue for the period April 1st to June 30th, 2011 was $584.7 million, an increase of $43.9 million or 8.1% from the amount recorded for the corresponding period during 2010.

22. Taxes on incomes and profits realised $206.5 million, an amount of $3.8 million more than collected for the corresponding period in 2010. Corporation Taxes continued its decline falling by $1.6 million for the period under review. The five (5) companies making the greatest contribution for income year 2009 were analysed. Only one (1) of these has already filed for income year 2010. This difference is also linked to companies expecting their taxes payable to be reduced or the expectation/knowledge of losses. With respect to income taxes, $0.4 million less was recorded for the period April to June 2011. It should be noted that refunds of income tax were $11.1 million for the period under review while they were $0.9 million for the corresponding period in 2010-2011. Withholding taxes increased by $5.8million to an amount of $23.7 million.

23. Taxes on property increased by $1.9 million over the corresponding period in 2009-2010 to $6.5 million.

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0 thoughts on “Government’s Outturn April To June 2011 Positive

  1. Government now has no excuse for not increasing the wages and salaries for public servants. I watch the Minister of Finance on television parading the good news of increase revenue for Government. In light of the fact that everything that the public worker spends his/her salary on has increased since 2008: it is only fair that they should be given some small increase to offset the rising costs. Government can now afford it.

  2. I am very serious. Government has taxed the hell out of the people of this country in some cases unnecessarily so. I am not asking for all of the increased revenue. Since the last salary increase in 2008 can you name something that has not risen in price. The last straw was the massive increase in electricity bills which was caused by the greed of BL&P and the Government’s insatiable need for money.

    Government has its priorities all mixed up and waste lots of money . They probably never heard the old saying, “take care of the pennies and the pounds will take care of themselves”.. Right now they are wasting money at Rock Hall, St. Thomas building a monument to bogus History.

  3. @Caswell Franklyn: “The last straw was the massive increase in electricity bills which was caused by the greed of BL&P and the Government’s insatiable need for money.

    With all due respect, I disagree with half of your statement.

    Please see the dialogue which has been taking place on another Blog here on BU between those of who understand the situation with BL&P: Barbados Light & Power Responds To Love Letter.

    But, to support the other half of your argument somewhat, the GoB could, if they wanted, alleviate the high price of electricity if they so choose.

  4. @David: “Your suggestion would logically lead to contraction in Crown revenue.

    Not necessarily…

    If, for example, the Government waived VAT on electrical bills, it would free up that money in the consumer’s pockets to spend on other necessities (like, for example, food).

    The GoB still get their “cut”; just on other products.

    • @Chris

      If we accept the 70 cents from every dollar leaves the country then we expose our forex reserves no?

  5. What an immature and reckless comment from Franklyn, need I say anymore but it is share stupidity and a brainless comment.

  6. Ok so i guess these updated figure will eventually make their way into the public finance section of the central bank database. The Q1 figures online for 2011 don’t really match match the 3 month report so are they in error or are these the correct figure ?

  7. @David: “If we accept the 70 cents from every dollar leaves the country then we expose our forex reserves no?

    Taxing our own people (in Barbados Dollars) for what is an essential service does nothing to alleviate forex reserve depletion.

    It does however, increase the risk of hardship and individual crisis, when can lead to civil unrest….

    • @Chris

      You need to follow the argument here, if you free up dollars given the consumption behaviour of our people 1 and 2 the fact we import almost every thing we consume there will be a leakage of forex

      Do you remember what it was like in 1991?

  8. waiving the VAT tax would be reckless at this time. Moreover it is guarantee money from BL&P when compared to other small business who have been unable to pay their VAT. However i would like to see some kind of gradual reduction over a period of time .

    • The international rating agencies would eat Barbados for bait then the BLP would be flapping their gums in glee.

      Oh we are in such a bad place it is not funny.

  9. @David… The fact we import almost everything we consume is the fundamental issue we now face.

    @ac… So, how about this…

    What about waiving the VAT on the first block (read: the first 150 kWh) of power consumed by each domestic consumer, including that on the fuel?

    That would have a small impact on the GoB’s take, but would have a noticeable impact for those who consume the lease (and thus, almost by definition, are generally the most financially vulnerable.)

    • @Chris

      It would generate goodwill but would have to see the numbers to see if it makes material sense.

  10. @David…

    Have you heard of the term “analysis paralysis”?

    My definition of a great leader is one who listens to all available counsel, and then makes their own decision and ensures it is acted upon.

  11. Grow more food and import less food.
    Minimise your use of Electricity and Gasoline.
    Buy local if possible.
    Cut and contrive because Barbados is in deep doo doo.

    2000 potential visitors to Barbados just got laid off.
    Research In Motion shares took a hit on Monday after the BlackBerry maker announced it was cutting 2,000 jobs, or about 11 per cent of its workforce.

    These are economically volatile times around the world and Barbados is part of this world.

    The traditional economic boom that follows a recession is not going to happen in the foreseeable future.

    While keeping the Government under pressure, take responsibility for yourself and your family.
    Crop over is a great diversion from the problems you face so enjoy it.

  12. @CH
    As it is now the VAT is spread across the board equally percentage wise. it is up to the consumer to control how much vat they are willing spendwise to give to the government. Doing what you say maybe a noble gesture but in the long run it would impact on the governments revenue in fighting the deficit. I believe than when the deficit becomes more managable they would be a slight not much decline in Vat. As for the fuel cost on electric bills that is applicable to many households and businesses not exclusive to Barbados and yes the charge is high,Do i like paying them NO! then my only solution is to cut back.

  13. @ac, David, et al…

    Perhaps it worth bringing up the BANGO Final Submission to the FTC for the BL&P Rate Hearing. Please see

    Very specifically, please see table 3 on page 8, where we show that even the most minor of households would have difficulty consuming less than 200 kWh of electricity each month.

    One small victory the Intervenors can claim is the first block was raised from the proposed 100 kWh/month to 150.

  14. Where are we going to grow more food when we planting houses and selling all the land toreigners who use it for commercial purposes. What about the two thirds vote in parliament that must take place for change in land usage from agriculture. Tell me how we gine grow food to feed Barbadians

  15. @Disappointed …. you should say where are we going to grow more food when Bajans don’t want to dirty their hands. Land that the foreigners have bought and are buying are mainly coastal lands and land that does not support agriculture. Yes there are a few former plantations that have been cut up and sold but drive around Barbados and see how much vacant land under bush. We have to stop blaming foreigners for all of our problems. We are the ones who created the problem. Look at where some of us live, the house is as big as the land plot with no green areas and concrete all around.

  16. do not knock caswell, as a leading trade unionist it is his duty to represent the interests of the workers and the duty of the govt represent the interst of the country. if the minister of finance says that the economy is looking up and there is increased revenue then is it not within the interest of the trafde union to ask for some to relieve some of the hardship endured by the membership as a result of the unprecendented increase in the cost of living since they assumed power. let the minister answer mr franklyn and make his case as to why he cannot accede to mr franklyn’s was the minister of finance who is gloating about increased revenues not mr franklyn.

  17. ac if vat is taken off the light and power bills the consumers and by extension the economy will benefit because the consumers would have more to spend because in a society there is usually more spenders than hoarders otherwise the economy would stagnate and collapse. there will be no benefit to the light company since they only collect the vat for the government and the government is already getting a big slice out of the taxes gained from the irritable fluctuation of fuel prices at the pump.

  18. @balance

    You comment is not balanced. Yes an economy represents aggregate spend but it is the degree of spending which has to be counterbalance with expense control given the harsh economic climate.

    So it can’t be about spend only. Be balanced!

  19. @Disappointed,

    There is enough land in Barbados to grow enough food to feed the entire population.

    Even on rock and rab land you can build Hydroponic farms.

    When you run out of foreign exchange and can’t import food then you will understand. I hope you got friends and family in the diaspora who will send you a barrel or two.

  20. This article troubles very much.

    Propagandizing that there is a reported increase in the amount of income that government has stolen from the relevant people, businesses and others in this country simply does not cut it in such a modern enlightened era of human civilization.

    Indeed, TAXATION IS THEFT, ROBBERY AND EXTORTION, and is a throw back to the old days of rapacious greedy kings, queens, pharoahs and emperors !!

    So, no amount of political tomfoolery over whether there has been, for whatever particular period of time over whatever other periods of time, a decline or increase in the amount that the Barbados government has stolen from the relevant people, businesses and others in Barbados, will be enough to stop the broad masses and middle classes from knowing that TAXATION IS WRONG EVIL AND UNPRODUCTIVE, and to stop them from knowing that in a growing participatory democratic society that there is no place for TAXATION – such a fascist totalitarianistic system.

    For, 70 % out of those who have been regarding our NO TAXATION CAMPAIGN seriously are in actual agreement that TAXATION HAS THOSE VILE CHARACTERISTICS and more, and must therefore be replaced by the right strategies whereby the government does not ever violate the income and property rights of citizens and others of this country.


  21. BU the real issue here that most bloggers are missing is not that revenue went up or that expenditure was down or up. The real issue here is the seemingly delight which the chief opposition spokesmen on the economy appear to have in promulgating bad news on the barbados economy.

    We all know that Opposition party’s have to take advantage where ever it is to be found and exploit it to their benefit. However there must be a limit to which one must go. The country’s economic and social survival rest largely on the confidence which players in the society have in the economy.

    No one has yet highlighted the fact Mr. Arthur made the very bold statement that he had evidence that the Barbados economy did not grow last year and that the Central . Up to now he has not produce any evidence to prove what he claimed.

    He came back a few weeks ago and said he had evidence that government receipts were abysmal and that the June in take was particularly bad.

    This is a former PM and Minister of Finance of 14 years. He has to know what he is taking about. The information which the Accountant General has release clearly shows that this is not the case. So why are we not asking the Opposition Leader to explain himself.

    Are we just prepared to allow him and Mascoll to make wild and unsubstantiated statements that can seriously undermine confidence in the Barbados economy just to make the Minister of Finance and the Government look bad.

    If the Minister has a responsibility to give Barbadians the facts about the economy and so many rightfully like to shout, does not the opposition leader and his chief spokesman have a responsibility provide the evidence they claim to have? or are we setting two policies and demanding two levels of responsibility? That is the real issue.

    • @Little Angel

      The point about Arthur and some other well known economists intimated that the numbers for June were being withheld was stated on another blog.

  22. Balance
    Don’t worry about me: when I am not being criticised, I start to worry.

    People must understand that public workers salaries are negotiated in arrears. For example, the salary increase in 2008 was supposed bring public workers up to 2008, that is, it should have made up for the losses suffered by workers and bring them up to what was expected in 2008. But as soon as the increase was given, Government started to erode those gains with increased taxes. In systems where workers are paid increases of salaries in arrears, it is usual to give the workers a cost of loving allowance (cola). In Barbados workers are always playing catch up.

    The members of the Government might find it hard to empathize with public workers. In 2008 most of them received a massive increase in their standard of living as a result of being elected to parliament. Their take-home pay skyrocketed. Prior to the election most of them were either unemployed or under-employed, so they are not feeling the pain of public workers.

  23. Will the various pundits who took definitive positions on the basis of preliminary data now have the decency to revisit their conclusions?

    If my memory is correct the thesis that became urban myth is that increased VAT had led to reduced expenditure hence the lower intake. This was taken as a symptom of Sinckler’s lack of knowledge on how to manage an economy. Are the pundits sticking to their positions now new data is out?

    Personally I prefer to wait and see before judging negatively or positively. In school they taught me that one data point does not a trend make.

  24. Of course our wonderful journalists would not seek to connect the dots between the earlier comments and conclusions and the new data. Actually, I expect them to question the data.

  25. The governor gave different figures at the beginning of July. These figures were for the end of May. But now we have new and different figures for the Acct. general. Let the governor respond . This is a sleight of hand. Come clean. No one is the wiser for these analyses. We have come to a strange place. The central bank and the Accountant general figurtes must blend and the the same. they must give us hope not contradict each other.

  26. @David: “Do you remember what it was like in 1991?

    I remember it well.

    But I don’t remember what it was like here in Barbados then, since I wasn’t here. It would be another ten years before I came down to our little jewel in the sea.

    But Google for “barbados 1991 crisis” and you’ll find a *very* interesting paper (in scanned PDF format) from the Central Bank of Barbados’ web site as the second link entitled “Balance of Payments Crisis and the Policy Options: The Case of Barbados”.

    It is very unfortunate that we can no longer rely on our sugar production and exportation for our foreign exchange…

    What else have we got?

  27. Little Angel
    This government is confusing many people, earlier this year Minister Byer-Suckoo said unemployment will rise slightly in the first half of 2011. A few weeks after we heard the Gov. of Central Bank and Sinckler say that the unemployment has lowered, the same thing has happened with the economic state of the country, one month one person says we are still in a recession and a month later we hears we have experienced a 2% growth. Now we heard from the Gov of the Central Bank that even though the VAT was increased, less money was collected, now we’re hearing from the Acct General and Min of Finance Sinckler that VAT collections has increased by some 37.5%. These figures are most confusing and I think the Barbados Government needs to clarify this matter urgently. International investors are listening , so while politicians are maybe trying to make themselves look good by refuting the negative comments and/or figures earlier produced, these people are putting a question mark against Barbados and watching us with a careful eye. The commercial banks are doing the same that is why government is now fighting t raise their fiscal position because the banks are showing no interst in their debentures

  28. Scout, the problem is not the government or the central bank. It is the people who refuse to listen to the facts, research them, but prefer to listen to what the media half reports. The fact that an economy has grown does not mean it is not in recession. By theory and accepted practice, an economy is thought only to have officially emerged from a recession after three straight quarters of economic growth. To my recollect Barbados has only had just recorded its third straight quarter of economic in last quarter if you take the last quarter of 2010. Even then that quarters growth was said to be within the margin of error. So the claim to be out of recession can only be legitimately made from now. That is why up till now who would not have heard neither the governor nor the minister of finance say the economy is out of recession. They might say it has grown, which it has but not officially out of recession. So technically if you still hear people saying that its still in recession for all intent and purposes it is depending on when they speaker starts his/her counting for quarters with growth.

    Second point, you would always hear the governor of the bank indicate oir say that their figures are provisional and/or preliminary. This is because the Central Bank gets its figures from other government departments which may issue the bank, provisional figures understanding that further data is to come in and so these may change over time as final or more complete data is received. This is standard practice in any country where economic reporting is done. So if the Central Bank is going with its press conference on the second quarter in the second week of July and reports on figures on the public finances for April and May that the VAT receipts were down for that period by 2% as was done on this occasion, it can be seen as incredible if the Accountant General who is in fact the only and final authority of fiscal data, issues a report two weeks after the governor, which covers for the period April – end June, with a different and more definitive from the Bank. The bank reported for the period in which they could confirm or felt comfortable confirming. The AG gives the final figures which his/her office has recorded. The two are not necessarily at logger heads of contradictory because one is preliminary, the other final. And, the reporting time periods are different. Simple. What the media ought to do is to report and analyze the difference, but they have their own agenda so a so called slump in VAT receipts makes front page of the Nation, but an increase is relegated to page whatever down in the middle of the paper.

    Finally on your issue about unemployment, the only agency competent to report on those figures is the statistical department who those this quarterly. Anybody can say what they expect, or forecast will happen based on certain trends, but the real figures are know when the survey is done.

    So that while the Minister of Labour may have been expecting an increase in unemployment based on trends and expectations in the job market the converse has proven to be the case as the economy continues to work its way out of recession. This is not something that you can blame anybody for. Many times experts and media people in the US for example say that they expect an increase in job creation in the country and when the employment statistics come out it is a complete reversal of the prediction as more jobs were lost.

    So that international organisations and people who understanding these things know that you have to drill down beyongdthe narrow political posturing and get to the real figures and they know where and from whom to get the. They dont sit in an office waiting of the Nation or the BLP oppositon to get their information. They go directly to the sources or await the official data which it is published. So while you think that these things are confusing them they really are not.

  29. @ balance
    That approach has been tried and proven to being not succesful The USA tried that with the “economic stimulus package and all it did was contributed to the balloning debt.the Barbados is on the right track as with medicine it never taste good however in the long run the patient becomes better. Right now the governent is trying to pay down a debt with incurring interest and there is nothing in the coffers to give away.

  30. Economic data gets revised all the time, and by large amounts.

    If VAT filings came after the Central bank governor prepared his presentation, does that mean sleight of hand come on.

    • @Trained Economist

      Your point is taken but in the interest of clarity would it not make sense for the Governor to collaborate with the AG as far as timing of communications is concerned.

      In this case we are noticing a two week difference in the communications for the respective entities.

  31. Is this the work of the Illuminati or just the politicians?
    Debt ceiling deadlock: Who will get paid?
    By Jeanne Sahadi @CNNMoney July 28, 2011: 5:45 PM ET

    It’s assumed Treasury Secretary Geithner will make all interest payments to bond investors first. It’s not clear yet who will come second.
    NEW YORK (CNNMoney) — Who will get paid and who won’t?
    That’s the $14.3 trillion question as each day ticks closer to next week’s debt ceiling deadline and Congress shows no sign of brokering a deal.
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    • Print
    If lawmakers fail to raise the ceiling by Tuesday, the Treasury Department has said it will no longer be able to guarantee that it can pay all the country’s bills in full and on time.
    That’s because Treasury will not be taking in enough revenue to cover all the bills coming due in August. And without a debt ceiling increase, it will be prohibited from borrowing new money in the bond market to make up the difference.
    So, something will have to give.
    The consensus thinking has been that Treasury will prioritize who to pay first and who to put off. And at the top of the list of who gets paid will be investors owed interest on U.S. debt. If the investors aren’t paid, that would constitute a default, which would have a host of negative consequences for the country.
    Of course, it’s possible Treasury may decide it doesn’t actually have the authority to prioritize and will instead pay interest owed to bond investors but pay other bills as they come due — first come, first served, said former Treasury official Jay Powell, who coauthored a Bipartisan Policy Center report on the consequences of not raising the debt ceiling.
    Assuming, however, that Treasury believes it has the authority to prioritize, it’s not clear yet who will be paid first alongside investors. The Treasury has said it will provide more information as Tuesday approaches, and Republican Sen. Orrin Hatch has requested that the department turn over its plan by 5 p.m. on Thursday.
    The plan, however, isn’t likely to make anyone feel better.
    Will I get my Social Security check?
    That’s because everyone to whom money is owed besides bond investors have either qualified for federal benefits, provided goods or services to the government, are serving in the military or otherwise work for Uncle Sam. Money will also be due to agencies to which Congress has legally appropriated money to run federal programs.
    On deck to be paid every month: retirees, veterans, business owners, federal workers, active-duty soldiers, Medicare physicians and government agencies that need money to keep the lights on, to name just a few.
    “While at midnight on August 2nd we don’t all turn into pumpkins,” White House spokesman Jay Carney said in a press briefing, he described the process of picking who to pay and who to put off as a “Sophie’s choice.”
    How the math might work: The Bipartisan Policy Center estimates that Treasury will be short by about $134 billion for the month of August.
    That cash deficit will build steadily throughout the month.
    So, on Aug. 3, for instance, the center estimates that Treasury will take in $12 billion in revenue and have to pay out $32 billion, creating a $20 billion cash deficit. Among the biggest bills due that day: $23 billion for Social Security payments, $2.2 billion for Medicare and Medicaid payments, and $1.8 billion due to defense vendors.
    On Aug. 4, the group estimates that the cash deficit will increase to $26 billion, with only $4 billion in revenue coming in, compared to $10 billion in bills, the largest of which would be for Medicaid and Medicare.
    Come Aug. 5, the cash deficit grows another $5 billion to $31 billion.
    By Aug. 15, the Bipartisan Policy Center estimates that the running cash deficit will hit $74 billion. That day the Treasury will take in an estimated $22 billion in revenue and have to pay out roughly $41 billion. The biggest bill that day is a $30 billion interest payment.
    Cash on hand: What’s not yet clear is how much cash Treasury might have on hand going into August.
    The Bipartisan Policy Center estimates it might have enough, in theory, to pay bills in full until Aug. 10.
    Even if that’s right, however, Treasury may still decide to withhold some payments sooner to preserve cash to ensure it can make interest payments after Aug. 10.
    It may also keep some cash on hand to ensure it can make principal payments on bonds coming due after Aug. 10.
    Treasury will be able to hold bond auctions to roll over existing debt as it matures — more than $450 billion is expected to come due in August.
    However, if there isn’t enough demand for Treasuries because of the uncertainty the political crisis in Washington has caused, those auctions may fail to raise all that Treasury needs to pay the principal due.
    So Uncle Sam would have to pony up using the revenue coming in. That would mean even less money available to pay seniors, vets, small business owners and others who are part of the lifeblood of the U.S. economy.
    First Published: July 28, 2011: 2:48 PM ET

    • @Chris

      If US defaults there is enormous ramifications for the world economies not only Barbados.

      Certainly there will be destruction of wealth for those who hold stocks and equities on US stock markets, there is implications for us as far as fdi flows and foreign investment is concerned.

      Of more importance is that every thing based in US dollars immediately becomes more expensive.

  32. @David: “If US defaults there is enormous ramifications for the world economies not only Barbados.

    No shit.

    But since Barbados’ currency (among many others) is currently bound to the US of A’s currency, we are especially bound.

    Are we not?

    • @Chris

      This is where the second point made is relevant.

      “Of more importance is that every thing based in US dollars immediately becomes more expensive.”

  33. @David…

    So the the question becomes, does the US of A’s dollar make any sense as an international currency in today’s world?

    It’s a question few like asking.

    But it is a question which must be asked….

    • @Chris

      It is a question asked and answered.

      Many in the know suggest there is no suitable replace.

      The Euro was the pretender to replace it but…

  34. @David: “Many in the know suggest there is no suitable replace.

    So, then, are you arguing David that the Great US of A’s “Green Back” is the ultimate currency?

    Why, then, is Gold and Silver (and Oil) so very precious at this current moment?

    • @Chris

      The economists should answer you but with FIAT do you think countries like Barbados have the wherewithal to buy the metals required to back the currency?

  35. @David: “This is where the second point made is relevant. Of more importance is that every thing based in US dollars immediately becomes more expensive.

    Perhaps you haven’t understood the game being paid…

    Those playing the game against the US of A (and their partners) can pull the plug at any time.

    Thanks for playing.

    Have a nice time…

  36. When are we going to get the truth the whole truth and nothing but the truth.? We expect the unvarnished truth from those in charge. the political psturing is not good fror the govt, for the people or for the country.The statistics must be credible and they must like Caesar’s wife beyiond suspicion.No growth in May, growth in June. Come with it.

  37. david, my comments on this forum nor the previous comment would suggest that i advocate a policy of spend, spend which this government illadvisedly embarked on with their vgiveaways on their assuption of office and which more than anythingelse is responsible for current fiscal predicament. i already pointed out that government spending increased by 9.1% in the first quarter of 2009.

  38. ac i find your comments generally and balanced interesting but in matters relating to the local situation you seem to be out of your depth and suggest you live out the jurisdiction so i would not respond to your previous comment, i would reat it as an opinion to which you are entitled.

  39. i never thought someone would have said it, GOVT spending increased by 9.1% in the first quarter of 2009 plus the increased in taxes ,that has helped us to get where we are now.

  40. BU have you seen CNN this morning. The US Commerce Department has just issued its second quarter results for GDP growth and indicated that it recorded a growth of only 1.3 percent down from the predicted 2.4 %.

    Even more interestingly, and the bajan naysayers should listen to this, the Authorities have revised their first quarter GDP figure downward from the 2.1 percent they had put out earlier to a 0.3 % actual out turn. Wow. Now if that was in Barbados people on this blog would be accusing the Governor of the Central Bank, The Minister of Finance and the whole government of lying to barbadians and concealing the truth about the economy. In more reasoned and serious places where they understand that data is always updated by authorities they accept these things as part of the normal course.

    Oh well, only in Barbados I guess.

  41. Does the government have to pay utility bills?

    Are there legally mandated increments to salaries of persons in the state sector?

    Does the government purchase any goods and services?

    Does the government have to make legally contracted interest payments?

    MY question would be, how much of the increase in expenditure is really discretionary?

  42. Little Angel…….you are a Blessing in disguise !

    It is only the myopic BLP parasites who are consumed with the thought of political power who cannot understand the realities of the current economic recession.

    But like Chris warned them in the House of Assembly the other day……there will be a REPLY to the REPLY of the upcoming Budget.

    Owen Arthur stay tuned !!!

  43. Yes balance it is more than a opinion it is a fact. In harsh economix times when a government is trying to pay off its bills . Suhghesting that the government giveaway what little revenue it has recovered is foolish and reckless. In hard economic times nobody is bullish about spending most people try to save. What the government is doing is right on track.AS for Owen Arthur he would want people to believe that he has a magicwand to save the economy and everthing the government say is a lie his days are over and he needs to take a rest and stopping trying to fool the people that he has an answer.

  44. You must be reminded that the government uses the accrual system of accounting. This means that revenue is recognized in the period in which it was earned, and expenses are recognized in the period in which they were incurred, irrespective of funds being received or paid out. As it relates to VAT, businesses are allowed to file VAT returns, without paying in the VAT amounts due. All revenue would be recorded on the income statement as revenue, but the amounts that
    are actually due are reported on the balance sheet as accounts receivable. This is evident by the fact that many businesses are indebted to the VAT office. The same goes for income and corporation taxes. Corporations and sole-proprietorships are also allowed to file returns without paying in the amounts due. This is also evident by the millions of dollars due to Inland Revenue.
    In both cases, the relevant departments would use the returns to calculate revenue, as well as the interest and penalties due on outstanding amounts, and the total sum would be categorized as income. For example, the deadline for filing income tax is April 30, 2011, and Company X filed a return in May 2011, with an amount payable of $5,000. Although, filing was done in May, 2011, the $5,000 would be recorded as revenue for April, with interest and penalties being calculated and reported in the months in which they were incurred.

    Current revenue for the period April 1 to June 30, 2011 was listed as $584.7 million; but how much of this amount has actually gone into the treasury. Only the balance sheet and statement of cash flows will be able to answer this question. In the absence of these two financial statements, these figures are meaningless.

    What we should ask is, how much of the revenue reported was actually collected, and what methods are being employed to ensure that the outstanding amounts will be collected.

  45. Excuse me, does anybody know how much money has been spent to date on road works by the present administration?

    Where any of these projects discretionary?

    15 TO 20 MPH.

  47. david about $204.1million. however, some of the expenditure can be attributed to increases in salaries and wages and transfers of subsidies

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