Economic outlook better than expected: T&T Finance Minister

Government's fiscal house is in much better order than anticipated.

The good news is contained in a media release from Finance Minister Larry Howai who noted that there has been a $4 billion surplus in the first quarter of 2014. The original projection was for a deficit of $708 billion.

Howai said actual revenue between October 1 and December 31, 2013 was $15.449 billion, much higher than budgeted revenue, which was $12.551 billion. That means the country received $2.898 billion above what it expected.

The government also spent less that planned. Expenditure was $11.299 billion - nearly $2 billion less that it budgeted.

The minister said the preliminary figures show revenues have exceeded budget estimates by approximately 23.1 per cent. He explained that it was primarily due to higher than anticipated receipts from, among others:

• taxes on goods and services (2.1 per cent)
• international trade (17.4 per cent)
• other taxes (23.8 per cent)
• non-tax revenue (212.3 per cent)

Preliminary expenditure figures fell below projections by 14.8 per cent due to reductions in state expenditure on other goods and services, current transfers and subsidies by 34.6 per cent, 5.9 per cent and 48.4 per cent, respectively.