No runaway Govt expenditure – Boyce

Government expended well over a quarter billion dollars in debt repayments in the 2017/2018 financial year, more than it had done in the previous year, according to Senator Darcy Boyce.

Speaking in the Upper House today during debate on the 2018-2019 Estimates, Boyce, the Minister of State in the Prime Minister’s Office, explained that “debt service over the last few years has tended to increase faster than anything else because we had to do more borrowing”.

However, he argued that outside of the debt amortization Government expenditure had remained relatively steady while revenue increased slightly, which he said augured well for decreasing the country’s overall deficit.

“Under that basic structure of the public service there has not been any runaway spending . . .  on transfers, goods and services, on wages, salaries and pensions,” Boyce said pointing out that when debt amortization is included the current expenditure for 2016-2017 was $3.8 billion, and in 2017-18 it shot up to $4.3 billion.

He stressed that expenditure had gone up because “our debt repayments for 2017-18 was $350 million more than what it was in 2016 to 2017”.

However, the Government Senator said, “when we pull away that increase in amortization we come to a position where our actual expenditure in 2017-18 was very much on target to what it was in 2016-17. The point is that there has not been any runaway spending on the core services of Government when we compare 2016-17 to 2017-18.”

According to Boyce, the wages bill for 2017-18 was $723 million down from $726 million in 2016/2017 while the goods and services bill remained constant at $393 million.

However, transfers to statutory corporations and other state-owned entities went up from $1.14 billion in the previous financial year to $1.19 billion in 2017/2018.

At the same time, Boyce reported that there was a $250 million increase in revenue for the 2017/2018 financial year taking it to $3 billion, up from $2.75 billion in the 2016/2017 financial year.

“The revenue seems to be going in the direction we want it to be going if we are going to meet expenses and close the fiscal gap,” he said.

7 Responses to No runaway Govt expenditure – Boyce

  1. Tony Webster February 22, 2018 at 5:44 am

    On the uthuh hand, we all heard two days back, Mr. David Ellis of Starcom Radio, winkle -out some astounding details of fiscal magnitude, from our Minister of Finance, regarding urgent and essential public works re the B.W.A. and its many essential capital works …some long-standing (replacement of mains network), more and larger De-Sal plants; and those of another odious smell, amounting in total to near a billion dollars, according to Hook, Lyne, and Sinklering. He did not specify who is going to loan this to us, but expressed a few hopeful sources. M.O.F. bossman did not say who would be repaying these astronomical sums…or what rate of interest would be added to tax-payers aching backs…but did make a close association with water rates “being reviewed”.
    So thing ain’t as rosey as Mr. Boyce tries to portray…it’s just that this is the season for roses…and elections.

  2. Sunshine Sunny Shine February 22, 2018 at 7:07 am

    You are such a dishonest quack.

  3. Atman February 22, 2018 at 9:57 am

    DLP politicians better keep far from me during this silly season.

  4. hcalndre February 22, 2018 at 3:06 pm

    All the billions that this DLP government says that they are raking in taxes and yet they are saying there`s no money, the bucket has a hole a very large hole.

  5. Greengiant February 22, 2018 at 3:12 pm

    @Atman: Which politicians you want close to you then, since
    D L P’s are being warned off?

    The estimated cost of the B W A capital works without giving us the final figure after interest calculations is similar to what the
    B L P did in the case of the new prison, the South Coast Sewage plant, the desalination plant and storage tanks (Ionics Fresh Water) and the S B R C project.

    These two parties are but the same when we carefully examine their political, and economic MOD. Thankfully they’re other parties to consider now because the choice between the B L P and D L P is like a blind pull in a lucky dip. Same value regardless.

  6. Ossie theophilus Moore February 22, 2018 at 3:50 pm

    Can I offer a straw (hcalndre) ??

  7. Ossie theophilus Moore February 22, 2018 at 3:54 pm

    But Tony when breadfruit season in; ebba body will be fine especially up north by Kelly!!


Leave a Reply

Your email address will not be published. Required fields are marked *