THE STATE-RUN Fiscal Services Limited (FSL), has incurred a deficit of $15.12 million for the year ended March 31, 2002, nearly $3 million more than the shortfall recorded in 2001.
The information is contained in Ministry Paper #59/03, which highlights FSL's annual report for 2002. The document was tabled in the House of Representatives last Tuesday.
It explained that FSL was established in 1985 to provide "efficient, cost effective, quality information systems and support services primarily to the Revenue Departments and other government agencies as directed by the Ministry of Finance and Planning."
According to the Ministry Paper, the shortfall was "due mainly to a $38.78 million increase in expenditure which grew to $250.88 million." "Staff related costs of $174.75 million, representing 78 per cent of total expenses increased by $29.73 million, due primarily to the recruitment of 22 additional members of staff," the Ministry Paper added.
It explained that FSL's major income source is government subvention accounting for more than 96 per cent of the entity's revenue inflows. Although the entity received only a portion of the funds expected from government, actual receipts were $32.13 million above the previous year's, contributing to the 18.04 per cent increase in total income over 2001.
FSL has been credited with, among other things, stabilising and standardising the operations for most systems to operate efficiently in support of the Revenue Service Centres and collectorates islandwide.
