The Government of Jamaica is reporting a J$6 billion shortfall in revenue at the end of August. This was due to lower than expected revenues and grants.
Tax revenues under-performed, mainly as corporate income tax and General Consumption Tax (GCT) intake were below target.
The issue of lower than projected corporate income tax collection has been raised by Richard Byles, Chairman of the Economic Programme Oversight Committee (EPOC). Mr. Byles said he would seek answers from Tax Administration.
Lower than expected GCT suggests that the expected growth in consumers spending power continues to lag behind the pick-up in economic activity.
With less money available, the Government has cut back spending on programmes, wages and salaries, as well as capital programmes, while realising savings from lower interest rates on the debt.
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