Treasury's deficit doubled

In March, fiscal deficit reached $1,407.2 million, which implies an increase of almost 670 million with respect to the deficit a year ago.

This was revealed by the Treasury Department after announcing the financial result of the national Treasury last month.

The increase in deficit is the result of the fall of total revenue amounting to $521.2 million and the increase in spending (including deficit of provincial funds) amounting to $148.6 million.

" As for spending, the increment reported in March is based on ordinary and capital transfers to the provinces that amount, in total, to $210.8 million with respect to March 2000," the Economy Ministry acknowledged.

Transfers

The Treasury's report states that the "increase in spending is basically the consequence of the fact that in March $110 million was transferred for the National Fund of Teachers' Bonuses, while in the prior period no transfers were reported."

As for resources, "tax revenue assigned to the Treasury was lower (98 million) when compared to the collection in March 2000.

"On the other hand, the report reads, a reduction in non-tax revenue amounting to $68.5 million was registered in March against the same period last year. It was the result of the fact that in March 2000 $60 million was collected by the Treasury as contributions from the Central Bank, while in the present fiscal year such income was registered in February."

As regards property income, a similar performance was registered given that the $196.1 million fall in the year-on-year comparison is due to the fact that in March 2000 $200 million was collected as profits from the Central Bank, while in 2001 such income was reported in February.

Trust Funds

Tax revenue was also worsened by ordinary transfers, which fell $115.5 million due to lower transfers from trust funds given that those transfers reached 226.1 million in the previous fiscal year while in the present one they amount to 106.3 million. That is to say, a difference of 119.8 million.

Also, a fall in capital income amounting to 49.3 million was registered last March, while in March 2000, 30.8 million was collected for shareholding programs and 18.6 million for the sale of fiscal properties, while in March there was not significant capital income.