BILLION-DOLLAR BUDGET – Debt, four ministries to take priority

By Linda Straker

Debt, Education and Human Resources, Works, Finance and Energy as well as Health are to receive the five largest allocations in the EC$1 102 243 944 Estimates of Revenue and Expenditure for 2013,
which was presented to the island’s Parliament on Tuesday by Prime Minister Dr. Keith Mitchell.

According to Dr. Mitchell, Capital Expenditure will be at EC$262.4 million, Principal Repayment/Amortisation will be at EC$395.8 million, while overall deficit including grants will be at EC$154.4 million.

A section of the audience listening to the Budget
presentation by Prime Minister Dr. Keith Mitchell.

He told the packed gallery that the overall deficit of EC$154.4 million will be financed by domestic and external sources and is necessary at this time to get the economy growing again.

“The major challenge of Government is how we manage the payment going forward, which now accounts for close to 65 per cent of current expenditure when we include Pensions and Gratuities,” he said.


Current revenues for 2013 are projected at EC$448.2 million, while the Government anticipated a recurrent surplus of EC$32.9 million that will be used as counterpart financing for some key projects.

He explained to the House of Representatives that the total expenditure for 2013 is projected at EC$262.4 million and of that amount EC$112.9 million will be from local sources.

Presenting the budget within seven weeks of winning the February 19, 2013 General Elections, Dr. Mitchell told the House that the new economy, which his administration continuously promoted, will require that Government puts its fiscal house in order.

“This process must commence now. With laser-like focus, I have led a determined effort to cut recurrent expenditure in the preparation of this Budget. Through resolute action, we have cut over EC$60 million from recurrent budget for 2013,” he said.

He said that his Government will be engaging in a number of measures that will reduce spending within the various ministries and through the established Waste Reduction Commission. He gave the assurance that GPS systems will be installed on Government’s fleet of vehicles; there will be a reduction in overseas travel by 20 per cent; and moving to rationalise rentals of government offices.

Government has also implemented a new mobile telecommunications plan that will cut telephone communications by at least 40 per cent. He did not disclose which of the two companies that Government has the agreement.