With revenue growth increasing by 7.7 percent year over year to $136.8 million, and current expenditure virtually unchanged in the third quarter, Government is on track to exceed the last financial year's operating budget surplus.

Current expenditure in the first half of the fiscal year, which began April 1, was $226 million, 3.9 percent below the same period last year, according to statistics released yesterday. Meanwhile, Government revenues increased $15.4 million or about seven percent in the first fiscal half to $236.4 million compared to last year.

This gives Government an operating budget surplus of $10.4 million in the first half of financial year ended March 31, 1999, compared to $3.5 million achieved in the first half of the previous fiscal year.

According to the figures Government had an operating budget surplus of $51.6 million in the past financial year. A sizable portion of Government revenue comes in during the last quarter of the financial year.

Ministry of Finance economic advisor Ron Holberton said Government revenues had been healthy during the year. He warned, however, against making any projections because of the economic uncertainty going into the next year.

"It's hard to tell at this time,'' he said. "A lot of people are thinking that the economy could be slowing down.'' Meanwhile, overall Government continues deficit spending. Capital expenditures of $35.3 million during the first half of the fiscal year ended September 30 brought total Government spending to $261.3 million, leaving a shortfall of $24.9 million.

Last fiscal year Government's total spending was $522.8 million compared to revenues of $500.1 million.

According to the statistics released yesterday Government current expenditure on goods and services was $113.9 million in third quarter 1998 compared to $113 million in third quarter 1997. Capital expenditure for the quarter was $16.1 million, 30.6 percent lower than third quarter 1997.

Total Government expenditure for third quarter was $130 million, $6.2 million or 4.6 percent below third quarter 1997. For the first nine months of the calendar year Government total expenditure rose $7.4 million or 1.9 percent to a total of $396.5 million compared to the same period last year.

Government took in revenue of $404.6 million during the first nine months of the calendar year, $25.3 million or 6.7 percent above the same period last year.

BUSINESS BUC