Bermuda Government revenues for last year have been higher than anticipated and spending lower, according to a report released today.

The Ministry of Finance Report stated that during the nine months ending December 2015, the Government earned $685.8 million in revenue — $36 million more than the same period in 2014.

Meanwhile, the Government spent $680.2 million during the period, $8.3 million less than the same period the previous year.

The report noted: “Taking all of the above in aggregate, the ministry believes the deficit for fiscal year 2015/16 will be approximately $213 million, slightly better than its original estimate of $220 million.”

Revenue increases in the report were attributed to larger collections in customs duty, payroll tax and passenger tax, which were able to offset lower revenue collected through foreign currency purchase tax, aircraft registration fees and shipping registration fees.

“Overall, total revenue is tracking ahead of the budget projection and the strength in the two main revenue drivers, payroll tax and customs duty receipts, has meant that the Ministry of Finance forecasts total revenues to be between $930 million and $940 million for the fiscal year.

“Government current account spending to date has been reduced in spite of the fact that the furlough initiative, which accounted for a significant amount of savings last year, has ended. The current year reduction is due to proposals and other budget reduction measures taken in the 2015/16 Budget.

“In general, current expenditures, excluding debt service, are presently tracking slightly below budget projections. The $680.2 million spent in the first nine months of 2015/16 represents approximately 74.5 per cent of the total current account budget of $912.7 million.”

The report stated that more money had been spent on financial assistance and legal aid than budgeted, while above-budget expenditures had also been reported in the Ministry of Tourism Development and Transport and the Ministry of National Security.

“The additional expenditures are being managed appropriately by finding savings in other areas, such as staff costs,” the report added.

“In general, current expenditures, excluding debt service, are presently tracking 0.5 per cent below budget estimates. The Ministry of Finance anticipates current account expenditures to register in the region of $920 million to $930 million.”

• To see a PDF of the full report, click on the link under “Related Media”