Upward onward: Bajan excellence 2030
Economic overview (continued)
Revenue collection
Total revenue for the 2021/2022 period was BBD$2.82bn, exceeding
the prior period total of BBD$2.56bn by 10.2%.
Government revenue consists of direct and indirect taxes, non-tax
revenue & grants with indirect taxes making up the majority averaging
54.4% of total revenue over the last five years (2018-2022). Direct
revenue and non-tax revenue & grants accounted for approximately
38.9% and 6.6% of total revenues over this period on average.
Direct tax revenue was BBD$1.15bn versus BBD$1.20bn in the prior
period. This decrease was largely driven by the 26.5% contraction in
corporate taxes. This trend reversed in the April to December 2022
period due to the implementation of the pandemic levy on individuals
and corporations. The latter generated an additional BBD$64.4m to
the Government.
At BBD$1.50bn, the indirect tax revenue was BBD$312.9m or 26.4%
higher than the prior period. This is mainly due to a VAT revenue
expansion of BBD$178.3m or 25.2%, arising from increased
domestic economic activity and import volumes and prices.
Expenditure control
Total expenditure for the period 2021/2022 was BBD$2.89bn
exceeding the same period prior year total of BBD$2.72bn by 6.3%.
The rise in expenditure was mainly as a result of increases in goods &
services and capital expenditure of BBD$93.4m (23.4%) and
BBD$143.3m (51.5%) respectively.
Government expenditure comprises wages & salaries, goods &
services, interest, transfers & subsidies, and capital expenditure & net
lending. From 2018 to 2022 transfers & subsidies and wages & salaries
comprise the largest portions of Government expenditure averaging
35.1% and 24.5% respectively. The remaining expenses being goods
& services, interest, and capital expenditure & net lending averaged
12.1%, 13.0%, and 7.7% respectively.
BDS (Millions)
3,500
3,000
2,500
2,000
1,500
1,000
500
Composition of Government Expenditure
PwC | 2023/24 Budget review | Barbados
2018
2019
2020
2021
2022e
Wages & Salaries
Goods & Services
Interest
Transfers & Subsidies
Capital Expenditure & Net Lending
Source: Central Bank of Barbados, e - estimated
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