Government’s Budget, setting out the Estimates of Expenditure and Revenue for the financial year 2017-2018, was today laid in Parliament.
It is estimated that Government’s total expenditure for the financial year 2017-2018, on the accrual basis, will be $4,549.5 million.
When converted to the cash basis, total expenditure is $4,486.7 million, an increase of $246.0 million or 5.8% over the revised figure for 2016-2017.
Of the amount approved for the 2017-2018 financial year, $3,091.5 million represents current expenditure, while $1,395.2 million represents capital expenditure and amortisation.
Expenditure on goods and services is expected to increase by $10.1 million to $421.4 million. Current transfers are projected to decrease by $29.3 million or 2.5% to $1,129.4 million.
The repayment of principal and interest on Government’s debt is expected to account for $1.8 billion compared to the revised projection of $1.7 billion.
On the accrual basis, current revenue for the next fiscal year is projected at $2,963.2 million. On the cash basis, current revenue is projected at $2,938.2 million, an increase of 4.7% over the revised revenue of $2,806.9 million for the financial year ending March 2017.
When amortization of $1,126.5 million is taken into account, a deficit of $422.0 million on the cash basis is expected, representing 4.4% of GDP.
On the accrual basis, the deficit is expected to be $191.8 million or 2.0% of GDP. The primary balance is projected to be a surplus of $276.0 million on the cash basis and $83.0 million on the accrual basis.
The Estimates for the 2017-2018 fiscal year include provision for the following activities:
- (i) A current subvention of $146.3 million is being provided to the Queen Elizabeth Hospital;
- (ii) Subventions of $87.7 million and $8.6 million have been provided to the Barbados Tourism Marketing Inc. and the Barbados Tourism Product Authority respectively;
- (iii) Amounts of $25.03 million and $4.96 million have been provided to enable the preservation of investments made in CLICO International Life Insurance Limited and British American Life Insurance Company (Barbados) Limited respectively;
- (iv) $8.0 million and $7.1 million has been provided for the CAF Road Rehabilitation Programme and The IDB Road Rehabilitation Programme respectively;
- (v) Grant funding of $15.0 million is expected to be received as budgetary support and also to assist in carrying out the following programmes: Renewable Energy Program; Refurbishment of the Gymnasium; and Higher Education Development;
- (vi) A current subvention of $26.6 million and a capital subvention of $2.4 million have been provided to the Sanitation Service Authority;
- (vii) An amount of $13.5 million has been provided for the Public Sector Smart Energy Programme;
- (viii) An amount of $12.1 million has been provided to the Barbados Drug Service for the purchase of drugs;
- (ix) A current subvention of $71.3 million has been provided to the University of the West Indies;
- (x) A current subvention of $19.0 million has been provided to the Welfare Department;
- (xi) Skills for the Future programme under the Ministry of Education, Science, Technology and Innovation has been provided with an amount of $11.0 million;
- (xii) $45.9 million has been provided for the redevelopment of Sam Lord’s Castle;
- (xiii) $15.0 million has been provided to bring to account projects of the Barbados Water Authority funded by the IDB, CDB and the Canadian Commercial Corporation.
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