Headlines:
| Gov’t to spend just under $500bn this fiscal year |
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| Thursday, 27 March 2008 | |
The Government is projecting to spend $489 billion during
the 2008/2009 Financial Year which will begin next Tuesday April One.The figure was outlined in the Estimates of Expenditure which were tabled on Thursday afternoon by Finance Minister Audley Shaw. The figure represents an $84 billion or 20 per cent increase over the final budget presented for the 2007/2008 Financial Year. Analysts said the rate of increase is not a surprise taking into account that inflation is now at a 12 year high, the sharp rise in Jamaica's oil import bill and the impending removal of hospital user fees. For the new financial year the Government expects to spend $304 million on recurrent or housekeeping spending such as wages and salaries. Meanwhile, $185 billion will go towards the capital budget which is used for project expenses. As is customary, the Ministry of Finance gets the biggest slice of the pie. A whopping $307 billion goes to that Ministry with most of the money to be used to service debt which is in the region of $123 billion. Adjustments have also been made for the upcoming increase in the public sector wage bill under MOU Three. Next in line is the Ministry of Education which has been allocated $58 billion. The Ministry of National Security gets $36 billion. It will receive $8.1 billion for its recurrent budget $1.2 billion down from $9.3 billion in 2007/2008. The Health Ministry will have $27 billion to spend during the year. The Prime Minister's Office will have $11.2 billion to cover its expenses. The increase was expected in light of the Former Local Government Ministry and other state agencies being placed under that Office after the Jamaica Labour Party took office last September. The Chris Tufton-led Agriculture Ministry gets $6.5 billion. Mike Henry's Transport and Works Ministry has been allocated $10.4 billion for recurrent and capital spending a $500 million increase over the Budget tabled last April. Parliament's Standing Finance Committee will meet next Tuesday to Thursday to review the Budget. On April 10 Mr. Shaw will explain how the Budget will be financed. |