$31b more!
BY ALICIA DUNKLEY Observer staff reporter dunkleya@jamaicaobserver.com
Wednesday, March 17, 2010
GOVERNMENT'S expenditure for the 2009/2010 fiscal year, which draws to a close in just 15 days, has overshot the original $556.7-billion to just over $593.1 billion -- a staggering $31.5 billion increase.
The revised spending estimates, which were tabled in the House of Representatives yesterday, will be placed before Parliament's Standing Finance Committee, which comprises all 60 members of the lower House at 12 noon today before being debated at the 2:00 pm sitting which follows.
The Ministry of Finance cut another $3.8 billion from recurrent expenditure and $5 billion in capital spending in the current fiscal year to make way for $40 billion more in debt expenses.
Government was able to cut over $7 billion from the amount of US dollar debt it had to repay before March 31 -- the fiscal year-end -- as a result of the Jamaica Debt Exchange (JDX) but had to fork out $13 billion more in interest payments to cover interest that was accrued during the JDX programme.
An additional $34 billion in local debt had to be retired as a result of higher-than-programmed borrowing on shorter term issues into the market while $4.5 billion was spent on what was called "financial investment" into Clarendon Alumina Production.
The net effect is a budget that now stands $31 billion higher than the last tabled budget, which back in September 2009 tacked an additional $6 billion on the budget that was tabled at the beginning of the fiscal year -- last March.
Then, $12.7 billion was slashed from recurrent expenditure and another $6 billion from capital spending to meet some of the $25-billion more needed to pay additional debt expenses and salary increases, among other things.
Meanwhile, the recurrent budget for the police department was slashed by $1.6 billion, while the justice ministry suffered a $31-million cut in its originally approved $203 million capital budget for the construction and improvement of courthouses.
The Ministry of Education's capital budget was also slashed by $133 million based on a reduction in grants and contributions and the setting aside of some building and land acquisition plans. A further $951 million was taken from the capital budget of the agriculture ministry.
The Government's original $556.7 billion 2009-2010 budget tabled April last year has already been subjected to two revisions.
Yesterday, Shaw also sought approval for a withdrawal of $54.1 billion from the consolidated fund to enable it to fund the operations of its ministries and agencies, pending the approval of the 2010/2011 estimates.
He said the sum was "necessary to make provision before March 31, 2010 for the carrying on of the business of the Government from April 1, 2010 until such time as the estimates of expenditure for the 2010/2011 estimates are approved".
He, however, noted that the amount does not include any new salary increases or new services or works not covered under the 2009/10 budget.
Parliament will next Thursday mark the start of the new legislative year with Governor-General Sir Patrick Allen delivering the Throne Speech, in which he will outline the Government's programmes and policies for the 2010/11 Fiscal Year, which begins on April 1.
That afternoon, Shaw is scheduled to table the 2010/11 Estimates of Expenditure in the House of Representatives which will provide details on how the programmes will be funded and what the various ministries and agencies will receive for Recurrent (housekeeping) and Capital (development) expenses. The Standing Finance Committee of the House will meet to consider the estimates from March 30 to April 1.
On Thursday, April 8, Shaw is scheduled to open the 2010/11 Budget Debate, which is expected to last until April 21. During the debate, selected members of the Government and the Opposition will make presentations.
