Nigel Clarke: Tax Revenue Underperformed Last Fiscal Year

The Ministry of Finance is reporting an underperformance in revenues for the 2023-24 fiscal year, which ended on March 31. That could have implications for the budget for the current fiscal year.

Finance minister, Dr. Nigel Clarke, made the disclosure on Tuesday.

Government revenues for 2023-24 were $97.5 billion or 11.8 per cent more than the previous fiscal year. But, that outturn was $22 billion less than the budgeted target.

Similarly, tax revenues for 2023-24 were 10.5 per cent or $78 billion more than the previous fiscal year. But, it fell $25 billion below the figure forecast in the budget.

Meanwhile, Dr. Clarke says despite the shortfall, Jamaica is still on track for significant reductions in its debt-to-GDP ratio.

Meanwhile, the finance ministry says the main contributor to the shortfall was corporate income tax. This as several businesses failed to make the requisite tax payments on time.

Dr. Clarke says the implications for the current fiscal year will become clear once Tax Administration Jamaica has received those payments.

Dr. Clarke says the government remains committed to its agenda and obligations as set out in the estimates of expenditure for the current fiscal year.

Dr. Nigel Clarke, Minister of Finance and the Public Service.