Grenada’s Revenue Surpasses Targets in August Despite Waiving Taxes and Incentives
Grenada Government’s Revenue Performance in August 2024
The Grenada government has reported that waiving various taxes and fiscal incentives to assist people affected by Hurricane Beryl’s passage in July did not negatively impact its revenue for August this year.
Revenue Performance in August 2024
According to the August fiscal report, the government’s current revenue for August 2024 was EC$134.2 million, which was EC$32.4 million more than the 2024 target and US$16.6 million more than the collections for August 2023.
Expenditure Performance in August 2024
Total current expenditures, excluding total principal repayments, for the month of August were EC$74.9 million, which was EC$3.4 million less than the EC$78.3 million targeted. August’s capital expenditures were EC$26.2 million, well below the EC$40.6 million target for August of this year.
Revenue from Customs and Excise
The passage of Hurricane Beryl did not affect the major ports of entry on the mainland despite the storm devastating the northern part of the island. As a result, revenue from Customs and Excise was EC$44.4 million, EC$2.7 million more than the projected EC$41.7 million.
Revenue from Inland Revenue Department (IRD)
However, there was a slight reduction in the amount earned by the Inland Revenue Department (IRD). According to the fiscal report, the government projected it would earn EC$31.8 million from the IRD but instead earned EC$31.7 million.
Breakdown of Revenue for January to August
A breakdown for the period covering January to August shows that taxes on income and profit were EC$117.6 million; taxes on property were EC$32.4 million; taxes on goods and services were EC$132.7 million; and taxes on international transactions were EC$304.7 million, for a total of EC$587.4 million.
Non-Tax Revenue
The revenue from non-tax revenues is EC$534.4 million, and the biggest contributor to that category is the Citizenship by Investment (CBI) program, through which foreign investors are provided with citizenship of the country in return for making a substantial investment in the socio-economic development of Grenada. The revenue from the CBI was EC$373.2 million, while non-tax revenue from other exceptional sources totaled EC$118.7 million.
Exceptional Revenue
Exceptional revenue is defined as revenue that is not part of the regular collections but significantly impacts the relevant period. The Ministry of Finance projected that the total tax and non-tax revenue would reach EC$859.9 million, but according to the fiscal report, the over-revenue for both categories was EC$1,121.8 million, or EC$261.9 more than projected.
Conclusion
Grenada’s revenue performance in August 2024 has surpassed targets, despite waiving various taxes and fiscal incentives to assist people affected by Hurricane Beryl’s passage in July. The government’s revenue from various sources, including taxes and non-tax revenues, has exceeded projections, indicating a strong economic performance for the country.
Frequently Asked Questions
Q: What was the revenue performance in August 2024?
A: The revenue performance in August 2024 was EC$134.2 million, which was EC$32.4 million more than the 2024 target and US$16.6 million more than the collections for August 2023.
Q: What was the total current expenditure in August 2024?
A: The total current expenditure in August 2024 was EC$74.9 million, which was EC$3.4 million less than the EC$78.3 million targeted.
Q: What was the revenue from Customs and Excise in August 2024?
A: The revenue from Customs and Excise in August 2024 was EC$44.4 million, EC$2.7 million more than the projected EC$41.7 million.
Q: What was the revenue from the Inland Revenue Department (IRD) in August 2024?
A: The revenue from the IRD in August 2024 was EC$31.7 million, which was slightly lower than the projected EC$31.8 million.
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