Treasury Department reports that net income rises for January and February compared with 2021
By John McPhaul
The secretary of the Department of the Treasury (DT), Francisco Parés Alicea, reported on Thursday that the net income of the General Fund for the months of January and February 2022 reached $999.8 million and $906.4 million respectively, which exceeds what was collected during the same periods for fiscal year 2021, by $156.9 million and $191.6 million respectively.
“For the fiscal period accumulated from July to February, this represented $426.8 million or 6.3 percent more than in the last fiscal year. If it is considered that in fiscal year 2021 revenues of $479 million dollars of deferred payments corresponding to fiscal year 2020 were recorded, revenues for this year exceed the level collected last year by $906 million or an additional 14.5 percent,” the secretary said in a written statement.
On January 27, 2022, the Financial Oversight and Management Board (FOMB) certified a new Revised Fiscal Plan. In said Plan, the projections of economic growth and income to the treasury are reviewed.
“Projections for Fiscal Year 2022, presented in the prior Fiscal Plan dated April 23, 2021, net revenues to the General Fund were estimated at $10.598 million. However, the projections in the new Plan add an additional $1,119 million over the previously estimated base or 11.0 percent. Regarding collections in Fiscal Year 2021, the review of the Fiscal Plan changes the growth projections, from a decrease of -8.8 percent to a growth of 1.2 percent. In other words, the revised Fiscal Plan assumes an increase of $11.189 billion in the collections made in fiscal 2021 to $11.827 billion for fiscal 2022,” explained Parés Alicea.
“The main items reviewed in the new Fiscal Plan were income from Corporate Income Tax, with an increase of 328.7 million; the collections from the IVU (Value Added Tax), revised by $213 million and the income of individuals, whose revision represented an additional $176.2 million dollars. It should be noted that none of the main income categories represented a reduction in the revision of the projected income”, the official highlighted.
The Fiscal Plan revises the projection for Fiscal Year 2023 and estimates a 1.6 percent reduction from the estimated base for Fiscal Year 2022 or $182 million less. Regarding Fiscal Year 2021, the projected base for Fiscal Year 2023 represents revenues higher by 5.2 percent.
This projection reduces the participation of the component of tax lines in fiscal 2023 of consumption from $3.932 billion to $3.884 billion and that of the foreign sector, composed of the income collected by excise taxes from foreign entities and withholding from non-residents, from $2.070 billion to $1.816 million. On the other hand, in relation to its projection for fiscal year 2022, the Fiscal Plan increases its projection for taxes related to income tax from $4.909 billion to $5.015 billion.
When comparing the accumulated collections to February 2022, according to the accrual method, the collections in Fiscal Year 2022 exceed the level of accumulated income for Fiscal Year 2021 by $906.1 billion. As for the projection, recently revised at the end of January, collections to February exceed the same by $423 million or 6.8 percent.
The income tax component turned out to be a substantial item of the increase reflected during the accumulated period of Fiscal Year 2022.