Lower deficit projected
THE Government yesterday released its official spending and revenue projections for the forthcoming financial year, showing a slight decline in expenditure, a lower deficit and a primary surplus for the forthcoming financial year.
And in a signal to CLICO poilicyholders, Government has also tacked on an amount of $17.1 million to enable the preservation of investments Barbadians have in the former ClICO International Life Insurance Limited.
The numbers are contained in the 2018/2019 Estimates of Revenue and Expenditure, which were laid during yesterday’s sitting of the House of Assembly.
Government announced it will be spending some $4.52 billion during the coming financial year starting April 1, 2018, while raising at least $3.23 billion in revenues.
Government said however that the expenditure of $4.52 billion when converted to the cash basis, will result in a spending bill of $4.46 billion, some $16.5 million or 0.4 per cent lower than the revised Estimates for the current year, which ends on March 31.
“Of the amount approved for 2018/2019, $3.17 billion represents current expenditure and $1.28 billion represents capital expenditure and amortisation,” according to the document.
On the cash basis current revenue is projected at $3.09 billion, an increase of 3.3 per cent over the revised figure of $2.99 billion for the end of the financial year.
“When amortisation is of $1.04 billion is taken into account, a deficit of $321.0 million is expected, representing 3.3 per cent of GDP,” according to the Estimates.
“On the accrual basis the deficit is expected to be $8.5 million or 0.1 per cent of GDP,” it said. The primary balance which is net borrowing excluding interest payments, is projected to be a surplus of $478.8 million on the cash basis and $398.1 million on the accrual basis.
The Estimates will be debated in the House of Assembly next week and the following week in the Senate. Among the financing activities during the coming year will be the $17 million allocated to the preservation of investments in the former CLICO.
There will be a subvention of $145.5 million and a capital subvention of $3.8 million for the Queen Elizabeth Hospital;$87.7 million for the Barbados Tourism and Marketing Incorporated; $8.6 million for the Barbados Tourism Product Authority .
Allocations at a glance:
THE following is a list of some of the allocations Government will be making during the next financial year, starting April 1, 2018:
• A current subvention of $145.5 million and a capital subvention of $3.8 million is being provided to the Queen Elizabeth Hospital;
• Subventions of $87.7 million and $8.6 million have been provided to the Barbados Tourism Marketing Inc. and the Barbados Tourism Product Authority, respectively;
• An amount of $17.1 million has been provided to enable the preservation of investments made in CLICO International Life Insurance Limited;
• $7.0 million has been provided for the CAF Road Rehabilitation Programme as well as $7.0 million for the IDB Road Rehabilitation Programme;
• Grant funding of $20.0 million is expected to be received as budgetary support and also to assist in carrying out the following programmes:
Renewable Energy Programme; The Hope Agricultural Training Institute Project; UWI Food Security Project
• A current subvention of $26.6 million and a capital subvention of $2.4 million have been provided to the Sanitation Service Authority;
• An amount $10.8 million has been provided for the Public Sector Smart Energy Programme;
• An amount of $12.2 million has been provided to the Barbados Drug Service for the purchase of drugs;
• A current subvention of $71.3 million has been provided to the University of the West Indies;
• A current subvention of $19.0 million has been provided to the Welfare Department;
• Skills for the Future programme under the Ministry of Education, Science, Technology and Innovation has been provided with an amount of $6.2 million;
• $15.0 million has been provided for the redevelopment of Sam Lord’s Castle; and
• $15.0 million has been provided to bring to account projects of the Barbados Water Authority funded by the CDB and the Canadian Commercial Corporation.