The monthly update that the Ministry of Finance provides to the Cabinet detailing the state of the nation’s finances took place on Wednesday.
This as a 10-member team from the ministry – to include the Financial Secretary, the Accountant General, the Minister of State in the Ministry, the Deputy Head of the Inland Revenue Department, the Budget Director and others— went to the Cabinet to provide a picture of the country’s finances during the month just ended and for the first quarter of 2025.
“The state of Government’s finances is improving and clearly shows that the economy continues to expand, despite the threats emanating from many quarters including the United States. The uncertain policy decisions, regarding tariffs, have proven to be harmful to the stock markets within the Western Hemisphere. Other pronouncements have caused uncertainty,” according to a source familiar with the discussion.
During the discussion, the Budget Director pointed out that overtime payments owed to Government workers is now classified as ‘salaries’, as ordered by the Cabinet, causing overtime to be paid simultaneously with salaries. In the month just ended, overtime payments exceeded $500,000 dollars. Payments of gratuities is also high on the agenda of the Treasury, almost $10 million dollars of gratuities have been paid, in the month of January; $20 million dollars are still outstanding.
Cabinet learnt that Corporation Tax, ABST, Education Levy, Customs Duty, and other revenue sources have been expanding. The Tourism Guest Levy is still being under-reported by hotels with 100% occupancy. The Inland Revenue Department is set to prepare a guestimate of amounts that have not been collected, and to pursue those taxpayers who have failed to reach the estimated amounts.
