Fiscal deficit falls in first quarter

The fiscal deficit improved in the first quarter of 2012 dropping to $660 million at end-March from a deficit of $1.1 billion a year ago, the Ministry of Finance (MoF) said.

This deficit is calculated including the projected revenues from the Ministry of Telecommunications. “Excluding expected transfers from the telecom surplus, the fiscal deficit becomes $800 million,” the MoF said.

Total revenues rose to $2.3 billion, from $1.8 billion a year earlier. Tax revenues reached $1.6 billion, up by13 percent y-o-y. VAT revenues rose by 15 percent, while taxes on income rose by 26 percent.

Non‐tax revenues totaled $546 million, up by168 percent y-o-y. This is explained by the inclusion of expected transfers from the telecom surplus worth $346 million. Excluding these transfers, and including the $200 million actual telecom transfers, non‐tax revenues would have amounted to $400 million.

Total expenditures amounted to $3 billion, up by three percent y-o-y. Primary expenditures rose to $1.7 billion due to increased transfers to the EDL to cover payments for fuel and gas oil. Interest payments fell to $800 million, down by 12 percent y-o-y. Treasury expenditures rose to $220 million doubling-up y-o-y. This increase is explained by a $136 million payment for municipalities, mainly resulting from the implementation of a decree allocating the 2010 revenues accruing to municipalities.