Government’s Estimates of Expenditure and Revenue for 2015-2016

Minister of Finance Chris Sinckler will deliver the 2015-2016 Estimates of Expenditure and Revenue in the House of Assembly tomorrow. Below is an overview of Government’s planned spending:

It is estimated that Government’s total expenditure for the financial year 2015-2016, on the accrual basis, will be $4,321.7 million. Of the amount approved for the 2015-2016, $3,027.4 million represents current expenditure while $1,231.5 million represents capital expenditure and amortisation.

Wages and Salaries are expected to increase over the revised amount for 2014-2015 by $20.2 million or 2.7% to $763.3 million. The increase is due mainly to the payment of increments to public officers as legally required.

Expenditure on goods and services is expected to increase by $58.2 million from the revised figure for 2014-2015 to $446.5 million due to counterpart financing for a number of foreign funded projects by the IADB, CDB and USAID.

Current transfers are projected to decrease, declining by $39.8 million or 3.6% to $1,054.4 million as Government continues its fiscal consolidation programme.

The repayment of principal and interest on Government’s debt is expected to account for $1.7 billion, $200 million more than the revised projection of $1.5 billion in 2014

Accrued current revenue for the next fiscal year is projected at $2,555.5 million compared to $2,541.6 in financial year 2014-2015.

Primary Balance

On the cash basis, there is a primary deficit of $35.6 million compared to a primary surplus of $95.3 million in the approved Estimates 2014-2015.

Fiscal Deficit

When amortization of $837.7 million is taken into account, the fiscal deficit on the accrual basis for 2015-2016 is projected at 6% of GDP.

The Estimates for the 2015-2016 fiscal year include provision for the following activities:

(i) A current subvention of $150.0 million is being provided to the Queen Elizabeth Hospital;

(ii) A subvention of $87.7 million and $9.1 million has been provided to the Barbados Tourism Marketing Inc. and the Barbados Tourism Product Authority respectively;

(iii) Invest Barbados has been allocated the sum of $10.5 million to carry out its operations;

(iv) $8.5 million has been provided to the Barbados Tourism Investment Inc. to carry out work on capital projects;

(v) Grant funding of $38.0 million is expected to be received as budgetary support and also to assist in carrying out the following programmes: Human Resource Sector Strategy and Skills Development; Storm Water Management Plan;

(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 $12.0 million has been provided to the Barbados Drug Service for the purchase of drugs;

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

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

(x) Skills for the Future programme under the Ministry of Education, Science, Technology and Innovation has been provided with an amount of $15.5 million;

(xi) The Low Income Housing Project under the Ministry of Housing, Lands and Rural Development has been provided with $4.5 million;

(xii) $8.0 million for enhanced access to credit for small and medium-sized enterprises;

(xiii) $5.0 million for the preparatory work on the redevelopment of Sam Lord’s Castle;

(xiv) $17.4 million and $63.0 million to bring to account projects of the Barbados Water Authority’ funded by the IDB and the Canadian Commercial Corporation respectively; and

(xv) $5.5 million to complete the Lodge School under the Edutech program.

One Response to Government’s Estimates of Expenditure and Revenue for 2015-2016

  1. Heather Cole
    Heather Cole March 15, 2015 at 3:51 pm

    People the view is even more dismal that you may think. The government has put it down on paper. They are out of cash, dead broke. Last year’s estimates were approved showing a $95 million surplus of cash. This year’s estimates shows a deficit of $-35.6 million in cash. They have no money. The government expects to spend $4,321.7 million but will only be earning $2,555.5 million. In order to make up the shortfall of $1,772.2 million, the MOF will be increasing your taxes or borrowing money. Either way you will have to pay it back.


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