According to the Pre-election Economic and Fiscal Update 2017/18 released on Wednesday last week, revenue is estimated to have increased from $159.4m to $173.8m.
The update said the estimates included the bonus payments that government receives through the Grant Funding Arrangement (GFA) with New Zealand for performance-based budget support, which total $0.6m. However, it said this bonus payment had been revised down to $0.1m for 2017/18.
“Also included in these revenue adjustments are movements in taxation and other revenue which have been increased to reflect year to date actuals,” the update added.
For the 2017/18 financial year, tax revenue was estimated to be $10.5m higher than previously forecast.
“This is predominantly due to the substantial increase in revenue estimates for company tax which have increased by $5m for 2017/18, followed by increases to estimates for import levies and income tax of $1.8m and $1.6m, respectively, due to an increase in economic activity.”
At the time of the 2017/18 HYEFU, the update said total withholding taxes received amounted to $0.5m.
This has since been adjusted upwards to reflect year to date actuals, totaling $1.8m.
“In previous updates, the withholding tax component was not forecasted due to its volatility with receipts from this tax recognised when they are received,” said the update.
“However, with the consistency of revenues that have been collected over the last three years, forecasts for this type of tax have been provided in the 2017/18 PEFU.”
Revenue from fisheries has also increased by $3.6m for 2017/18.
This, the update said, was primarily due to the sale of additional days for catch revenue to the US under the Fisheries Treaty.
“It is important to note that this fisheries revenue is only a one-off adjustment for 2017/18 and has not been factored into the outer year estimates.”
Other adjustments to revenue include an increase to the 2017/18 estimates for instant fines and driver’s licence fees of $100,000 and $180,000, respectively to reflect the increases in revenues received through road safety campaigns that have been conducted as well as issuing of drivers licenses.
Further adjustments to revenue estimates were made to IMO subscriptions and interest on balances which totals $0.2m and $1.8m, respectively to reflect year to date actuals which have come in higher than anticipated for the 2017/18 financial year.
“Offsetting these increases in revenue estimates is revenue that has not yet been received for dividends for 2017/18 as this is expected to be paid in a lump sum towards the end of the financial year,” the update said.
“At the time of the 2017/18 HYEFU, total dividends to the Crown were estimated at $1.7m.”