Gov't projects $17-billion increase in 2018/19 budget

THE first supplementary estimates for 2018/19, showing an increase in Government budgetary expenditure by $17.4 billion for 2018/19, was tabled Tuesday by Minister of Finance and the Public Service Dr Nigel Clarke.

The new estimates, if approved by the House of Representatives next week, will increase the 2018/19 budget from $773.6 billion to $791.1 billion.

The estimates show an increase of $12.4 billion in recurrent or housekeeping expenditure, and a $5-billion increase in capital expenditure.

The biggest increase was a $6-billion boost in the Capital “B” head, which deals with multilateral funding projects, moving the estimates from $19.3 billion to $25.3 billion.

In terms of the recurrent budget, the estimates projected an increase of $43 billion to be voted or from statutory accounts, matched by $30.5 billion in transfers or under-expenditure. In the capital budget, there were estimates of a $7.7-billion gross increase matched by $2.7 billion in deductions.

In the recurrent estimates, public interest payments are expected to step up from $136.9 billion to $138.1 billion. The other major boost was at the Ministry of Transport and Mining, where an additional $1.3 billion has been voted, boosting its recurrent budget to $10 billion. However, there was no indication whether this would influence current wage negotiations between the ministry and the police force.

The Capital 'A' estimates showed a reduction of $333 million in public debt servicing (amortisation/principal); as well as a $303-million boost for the Ministry of Industry, Commerce, Agriculture and Fisheries.

Non-debt estimates moved to $501.2 billion compared to $484.6 billion in the original estimates, while public debt servicing expenditure is now projected at $289.8 billion compared to the $288.9 billion originally estimated.

— Balford Henry