Opposition Leader Dr. Grant Gibbons has hit out at a near $20 million payroll tax windfall, which he says has boosted Government coffers at a time when business is suffering in an economic downturn.

The extra cash came after an adjustment in the payroll tax structure, which was later changed after complaints from the business community.

Dr. Gibbons called the windfall in payroll tax revenue an embarrassment to Government: "International businesses were hit very hard (by this change), and Government had to adjust (the cap) down. The additional revenue may be a little of an embarrassment for Government, as exempt companies have been complaining as a consequence."

The figures were revealed in Government's Financial Statements, for the 2000 to 2001 fiscal year, show larger than expected gains in revenue, and less expenditure on capital projects than anticipated.

The net result is an improved cash position, but a large pension adjustment leaves the current account surplus at less than $3 million.

Government's financial statements, for the year ending March 31, were released during Friday's session of the House, and actual revenue - at $623 million - was shown to be more than $30 million higher than original estimates of just under $592 million.

This translated to an end-of-year cash position of $45 million, a significant gain over the previous year's end-of-year cash position of $23.8 million. The statements show that capital expenditure during the last fiscal year had not moved ahead as planned. Most notably was the $24 million earmarked for education; only $11.5 million of which was actually paid out.

The highest money spinner - at more than 29 percent of total revenue - was from payroll tax receipts, which came in at close to $20 million more in revenue than anticipated.

The increase to Government coffers can be largely attributed to changes in the payroll tax structure, where companies were made to report on actual earnings up to a cap of $250,000.

The Government has since - and following outcries from exempt companies - adjusted the cap down to $225,000.

Customs duty receipts - at $175 million - accounted for 28 percent of revenue, and land tax was the third highest earner, accounting for $36 million in revenue.

Government also saw close to $6 million more in revenue - from international companies - for licensing fees accounting for close to $44 million in revenue.

Looking at the year's revenue jump, Dr. Gibbons said: "The bulk of the revenue increase is coming from increases in taxes."

Beyond the increases in payroll tax receipts, Dr. Gibbons pointed to increases in land tax, and licensing and permit fees - for both companies and vehicles.

Land tax - which Dr. Gibbons said had seen two price hikes under the PLP government - generated $36.2 million, or an additional $4.4 million over the previous year.

Of Customs duty receipts - which were $175 million this year compared to just under $174 last year - Dr. Gibbons said this was fairly static, which could be accounted for with the slowing retail sector.

But, Government is reporting a current account - or operational - expenditure of $620 million. This is $76 million more than last year's current account expenditure of $544 million.

In a statement to the House, Finance Minister Eugene Cox addressed the current account increase as being attributed to a $109 million expense adjustment for pension costs.

Mr. Cox said: "The net operational result prior to the adjustment (for pensions) is a surplus of $53 million compared to $42 million in the previous year."

But, Dr. Gibbons pointed out that the current account surplus is arrived at by taking current account expenditure from revenue, which leaves a total of $2.8 million.

Accountant General Anthony Richardson said the $53 million surplus cited by Mr. Cox was arrived at by taking the deficit of $56 million against the $109 pension adjustment.

But, Dr. Gibbons said this was "smoke and mirrors", as the deficit amount of $56 million includes capital expenditures - which should not affect current account figures.

Dr. Gibbons, speaking further on the pension adjustment said the actual valuation - and the extraordinary amount - was for $80 million of the $109 million total. And he said that Government had elected to expense that in one year, when they could have 'expensed that' over several years.

Overall, Dr. Gibbons concluded that Government had started the year in a "slightly better position", with revenue "windfall", and less capital expenditure, but he warned that Government had not been prudent enough in the face of an economic downturn.

The 2000 to 2001 results also show a net receivables of $37.5 million, which takes in to account a $16.1 million estimate for "bad debt." And a reduction of $6.5 million in public debt to a total of $133 million - although Mr. Cox, in his House statement put the debt at $138 million.