2015 Second Quarter Bulletin Of Statistics Report
According to the most recent Quarterly Bulletin of Statistics, Central Government revenue rose 3.9% to $221.2 million, total Government spending increased 1.4% to $269.8 million, air visitors declined 1.7% and employment income slipped 0.7%.
Central Government Revenue and Expenditure
The report said, “Central Government revenue rose 3.9% to $221.2 million. All revenue sources increased with the exception of international companies tax, telecommunications tax and the category of all other revenue which includes receipts not elsewhere classified.
“Total Government spending increased 1.4% to $269.8 million. Current expenditure increased marginally by 0.7% to $257.0 million due mostly to a rise in pension payments. Capital expenditure increased $1.8 million to $12.8 million.
Chart extracted from the report:
Employment Income by Industry
“Employment income slipped 0.7% or $5.5 million. The construction industry reported the largest percentage decline in remuneration of 11.9%.
Arrivals and Expenditure
“The Island hosted 71,974 air visitors during the second quarter of 2015, a decline of 1.7% year-over-year [See Table 4]. Estimated total expenditure by air visitors decreased 1.3% to $90.0 million compared to the same period of 2014. Visitors spent $6.7 million less on accommodation and food, but $5.5 million more on shopping, entertainment and transport services.
“A total of 55 cruise ships visited the Island carrying 146,477 passengers. Total expenditure for these passengers was estimated at $30.5 million. In comparison, 52 liners visited Bermuda’s ports during the same period in 2014 and $30.2 million was spent by cruise visitors.
Chart extracted from the report:
Hotel Accommodations
“At the end of April 2015, there were 2,474 workers employed within the hotel industry. The level of employment increased by 177 employees, representing 169 Bermudians and eight non-Bermudians.
“Hotel gross receipts totalled $93.6 million. This represented a growth of 8.9% or $7.7 million [See Table 6]. The rise in receipts was mostly due to a $3.0 million increase in room sales.
The full Quarterly Bulletin of Statistics follows below [PDF here]:
How can govt. spending increase when we have made so many cuts? How can we cut the deficit if we increase spending?
There are several things to note that could messing the numbers; first, this is only a quarterly report, not the annual budget. Second, as quarter report, this means that various annual budget items like projects might have been set for different times of the year, so there might be an increase in spending this quarter, and a decrease in the next… meaning we won’t know if we are going over budget for the year until closer to the end of the forth quarter, it only reflect that we spent more this quarter in reference to the same quarter last year. Next, despite the great fluff fare that the unions made about annoucing a success in finding cost savings, the government warned everyone that what was proposed would not be garaunteed until applied to real world metrics… no plan survives contact. Time will show where we are this year, but this visit from Joaquin will certainly show a small blimp in expenditure for this quarter as well.
What serious spending cuts had the OBA made? Obviously, spending this year will track higher than last because furlough days were not renewed. Big mistake not continuing furlough days: it was one of the fairest ways to achieve significant cost cuts in the CS without laying people off.
In the article it says government spending increased largely because of an increase in pensions spending. This is inevitable in an island with an ageing population and less workers paying into the pot.
So another decrease in visitors recorded.. Great news for Mr. Hanbury! Another bonus on the way!
Check the stats timings, the previously recorded arrivals decrease by the BTA that created so much noise, were for the second quarter, as is this report for overall, including those previously mentioned statistics. And like the last report, it also includes an increase in visitor spending.
2014 was up over 2013, and 2015 isn’t over yet.
The projected growth in revenue for the year was 6.0% relative to the previous year. If there is a small 2% revenue undershoot for this year, Gov would come up at least $15m short relative to its projected revenue of $931m. H
Spending is trending higher than projected. With a 1% overspend, spending would be about $12m higher than projected.
Put the two together and you end up with an addition to the previously projected $220m deficit. That $220 projected deficit increases by $27m and becomes a much higher deficit of $247m.
That is really bad. Really bad.
You must have been beside yourself with grief when the PLP overspent by $400m in a year.
It’s not even close to what we need, but at least they have some idea of how to stay close to budgeted figures.