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Government presents 2010/2011 budget
Thursday, 25 March 2010
The government Thursday presented its first budget under the guidance of the International Monetary Fund (IMF), the first in almost two decades.
The figures show <span style="font-weight: bold">the government aims to spend half a trillion dollars in the 2010/2011 fiscal year, representing a 15 percent decline from total expenditure undertaken in the now concluding year.</span>
When the one off <span style="font-style: italic">$22.5 billion for Air Jamaica's wrapping up costs </span>and the<span style="font-weight: bold"> $237 billion for debt service charges in 2010/2011 are taken out,</span> <span style="font-style: italic">only $236 billion will be left to spend.</span>
<span style="font-style: italic">Out of that will come $130 billion for public sector wages</span>, <span style="font-style: italic">which leaves only $111 billion available for other expenses in the next fiscal year</span>.
Less debt servicing
Of interest is the fact that the <span style="font-weight: bold">$237 billion in debt service </span>charges in 2010/2011 <span style="font-weight: bold">will represent 47 cents out of every dollar the government intends to spend. </span>
<span style="font-style: italic">That is down from the 55 cents of every dollar spent on debt servicing in the now concluding fiscal year</span>.
Deep budgetary cuts for several key ministries were also of particular note.
The Ministry of Health is to see a 6% increase in total monies available to spend but the Ministry of Education and Ministry of National Security saw declines in expendable income of two and six and a half percent respectively.
With the budget as it now stands, the government is expected to outline a plan to borrow only $84 billion in the next fiscal year, which would suggest that revenues and grants are expected to run around $320 billion, a tough target in a recessionary year.
MPs to dissect Budget
The Estimates of Expenditure have been sent to the Parliament's Standing Finance Committee for detailed consideration.
The Committee which comprises all 60 Government and Opposition Members of Parliament will meet for three days next week to conduct a line by line examination of the new budget.
Parliament was told on Thursday afternoon that the Standing Finance Committee will meet next Tuesday March 30 through to Thursday April 1.
Minister of Finance and the Public Service, Audley Shaw is set to open annual budget debate on Thursday April 8.
Thursday, 25 March 2010
The government Thursday presented its first budget under the guidance of the International Monetary Fund (IMF), the first in almost two decades.
The figures show <span style="font-weight: bold">the government aims to spend half a trillion dollars in the 2010/2011 fiscal year, representing a 15 percent decline from total expenditure undertaken in the now concluding year.</span>
When the one off <span style="font-style: italic">$22.5 billion for Air Jamaica's wrapping up costs </span>and the<span style="font-weight: bold"> $237 billion for debt service charges in 2010/2011 are taken out,</span> <span style="font-style: italic">only $236 billion will be left to spend.</span>
<span style="font-style: italic">Out of that will come $130 billion for public sector wages</span>, <span style="font-style: italic">which leaves only $111 billion available for other expenses in the next fiscal year</span>.
Less debt servicing
Of interest is the fact that the <span style="font-weight: bold">$237 billion in debt service </span>charges in 2010/2011 <span style="font-weight: bold">will represent 47 cents out of every dollar the government intends to spend. </span>
<span style="font-style: italic">That is down from the 55 cents of every dollar spent on debt servicing in the now concluding fiscal year</span>.
Deep budgetary cuts for several key ministries were also of particular note.
The Ministry of Health is to see a 6% increase in total monies available to spend but the Ministry of Education and Ministry of National Security saw declines in expendable income of two and six and a half percent respectively.
With the budget as it now stands, the government is expected to outline a plan to borrow only $84 billion in the next fiscal year, which would suggest that revenues and grants are expected to run around $320 billion, a tough target in a recessionary year.
MPs to dissect Budget
The Estimates of Expenditure have been sent to the Parliament's Standing Finance Committee for detailed consideration.
The Committee which comprises all 60 Government and Opposition Members of Parliament will meet for three days next week to conduct a line by line examination of the new budget.
Parliament was told on Thursday afternoon that the Standing Finance Committee will meet next Tuesday March 30 through to Thursday April 1.
Minister of Finance and the Public Service, Audley Shaw is set to open annual budget debate on Thursday April 8.