Reduced fiscal Deficit aim

THE Barbados Government is targeting a reduced fiscal deficit during the forthcoming financial year starting April 1, 2017.

This comes as it also announced increased spending and higher current revenues along with plans to slash Transfers by almost $30 million next year.
The 2017/2018 Estimates of Revenue and Expenditure were laid in the House of Assembly yesterday. They show that a 4.4 per cent deficit will be below the deficit of 5.1 per cent which is expected at the end of the current fiscal year at March 31, 2017. On the accrual basis the deficit for next year is projected at 2.0 per cent of GDP.

The Estimates which are to be debated in the House of Assembly next week, outline that Government’s total expenditure for the coming financial year, on the accrual basis, will be $4 549.5 million. When converted to the cash basis, total expenditure is $4 486.7 million, an increase of $246.0 million or 5.8 per cent over the revised figure for 2016-2017.

Of the amount approved for the 2017-2018 financial year, $3,091.5 million represents current expenditure, while $1 395.2 million represents capital expenditure and amortisation.

Expenditure on goods and services is expected to increase by $10.1 million to $421.4 million. Current transfers are projected to decrease by $29.3 million or 2.5 per cent to $1 129.4 million.

The repayment of principal and interest on Government’s debt is expected to account for $1.8 billion compared to the revised projection of $1.7 billion.
On the accrual basis, current revenue for the next fiscal year is projected at $2 963.2 million. On the cash basis, current revenue is projected at $2 938.2 million, an increase of 4.7 per cent over the revised revenue of $2 806.9 million for the financial year ending March 2017.

When amortisation of $1 126.5 million is taken into account, a deficit of $422.0 million on the cash basis is expected, representing 4.4 per cent of GDP.
On the accrual basis, the deficit is expected to be $191.8 million or 2.0 two per cent of GDP. The primary balance is projected to be a surplus of $276.0 million on the cash basis and $83.0 million on the accrual basis.

The Estimates for the 2017-2018 fiscal year include provision for the following activities:

(i) A current subvention of $146.3 million is being provided to the Queen Elizabeth Hospital;

(ii) 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;

(iii) Amounts of $25.03 million and $4.96 million have been provided to enable the preservation of investments made in CLICO International Life Insurance Limited and British American Life Insurance Company (Barbados) Limited respectively;

(iv) $8.0 million and $7.1 million has been provided for the CAF Road Rehabilitation Programme and The IDB Road Rehabilitation Programme respectively;
(v) Grant funding of $15.0 million is expected to be received as budgetary support and to assist in carrying out the following programmes: Renewable Energy Programme; Refurbishment of the Gymnasium; Higher Education Development;

(vi) A current subvention of $26.6 million and a capital subvention of $2.4 million have been provided to the Sanitation Service Authority;
(vii) An amount of $13.5 million has been provided for the Public Sector Smart Energy Programme;

(viii) An amount of $12.1 million has been provided to the Barbados Drug Service for the purchase of drugs;

(ix) A current subvention of $71.3 million has been provided to the University of the West Indies;

(x) A current subvention of $19.0 million has been provided to the Welfare Department;

(xi) Skills for the Future programme under the Ministry of Education, Science, Technology and Innovation has been provided with an amount of $11.0 million;
(xii) $45.9 million has been provided for the redevelopment of Sam Lord’s Castle; and

(xiii) $15.0 million has been provided to bring to account projects of the Barbados Water Authority funded by the IDB, CDB and the Canadian Commercial Corporation.

Barbados Advocate

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