Government???s budget, setting out the Estimates of Expenditure and Revenue for the financial year 2015-2016, was today laid in Parliament.
From financial year 2007???2008 the Estimates of Revenue and Expenditure were prepared on an accrual basis, comprising both cash and non-cash transactions.
Previously, the Government of Barbados prepared the Estimates of Revenue and Expenditure on the cash basis which measured monies paid out and revenue actually received.
Under the accrual basis of accounting, revenues are recorded when earned or when they become due while expenditure is recorded when it is incurred.??Under the accrual system of accounting, the Government reports its fiscal operations in terms of an operating statement.
The operating statement is similar to a profit and loss statement and is calculated showing revenue minus expenses. It should be noted that expenses are the costs of carrying on business and do not include capital outlays.
As part of this ongoing process, from next financial year (2015-2016) government???s deficit, overall and recurrent, will be reported on an accrued basis.??The full document may be accessed by clicking here.