The update, released on Wednesday, shows total revenue for 2017/18 PEFU is estimated to increase by $14.3 million since the 2017/18 Half Year Economic Fiscal Update (HYEFU) published in December 2017.
The update said that compared to the 2017/18 Budget, it was estimated that total revenue received will be $153.9m and changes had been made to reflect a $19.9m increase in the total revenue estimate for the 2017/18 year.
The update also said the current 2017/18 net operating position had improved, and was now projected to be $13.5m due to upward revisions in revenue estimates.
Expenditure had increased compared to the 2017/18 HYEFU by $7.8m, bringing total operating expenditure to $160.2m, the update said.
“This increase is allowed under the unauthorised expenditure provision of the Constitution, including any ‘carry-forward’ approved.
“At the time of the 2017/18 budget, total operating expenditure was estimated to be $149.7m.
“This estimate has been revised up by $10.5m, bringing total expenditure to the estimated $160.2m.”
Capital expenditure has been revised downward significantly to $26.3m since the HYEFU estimate of $60.2m.
“No carry forwards for projects from 2017/18 to 2018/19 financial year have been adjusted in this update as this will be done in the 2018/19 budget,” the update said.
“These data revisions have improved the fiscal surplus balance to $0.1m.”
The update also said due to the major underspend in capital projects, cash reserves had accumulated to $88.5m.
“Though cash reserves are looking healthy, it is essential to understand that the majority of this cash is committed to capital projects in 2017/18.”
The Ministry of Finance and Economic Management (MFEM) developed the pre-election Economic and Fiscal Update as the legal document to be released before election day on June 14, 2018.
The purpose of providing it is to make information on the current state of the economy and government’s associated fiscal and economic position available to the general public.