Revenues for the first quarter of the 2017/18 financial year came in at just under $250 million — up 7 per cent on the previous year, according to figures released by Government today.

The Ministry of Finance said the main reason for the rise was a $10 million increase in payroll tax collections compared to the first quarter of the previous financial year.

The statement added that higher collection of customs duty and stamp duty was offset by lower collections in passenger tax and civil aviation receipts “due to the privatisation of the airport” and the transfer of the Department of Civil Aviation out of the Government.

The statement said: “When compared to budget estimates, total revenues are tracking higher.

“However, not all taxes and fees are collected evenly on a monthly basis so the quarterly comparison should only be used for a rough guide.

“Current account expenditures, excluding debt service, for the first three months ending June 2017 are $232.3 million; this is $5.3 million or 2.2 per cent lower than was spent during the same period last fiscal year.”

The latest statistics show that capital account expenditures for the first quarter of the 2017/18 financial year were $15 million, which is slightly above the previous year.

The statement explained: “This is due to increased capital grant amounts for the America’s Cup.

“Debt service costs for the first three months ending June 2017 are $46.5 million.

“This represents $31 million in interest payments and a $15.5 million contribution to the Government borrowing sinking fund, representing approximately one quarter of the $62.1 million annual contribution.

“Debt service to date is about $300,000 less than last year’s period. This is due to the Government restructuring its debt in 2016 by paying off more expensive debt and issuing cheaper debt.”

Total Government spending for the first quarter of the 2017/18 financial year was $5.3 million, which was 1.8 per cent, lower than the previous year.

The statement said: “It should be noted that in the course of ministries’ budget monitoring and control exercises they have reported to the Ministry of Finance a number of additional expenditures in current account expenditures in 2017/18 — mainly due to unbudgeted expenses incurred for the America’s Cup by the former Government.”

For the first three months of 2017/18, the Government incurred a deficit of $43.9 million, which was financed by drawing funds from an HSBC Credit Facility and with working capital.

Gross debt at the end of June 2017 stood at $2.494 billion.