Updated – Estimates 2024 – 2025 Correction
On Tuesday, February 20, there was an error in the Government release dealing with the Estimates of Revenue and Expenditure 2024-2025.
The release stated that the Government expenditure for 2023-2024 was $3,483.7M. This figure was incorrect and should have included amortization for 2023-2024 of $662.0M. Once this is included, the total expenditure for 2023-2024 becomes $4,145.7M.
The 2024-2025 figure of $4,592.9M was accurate. Accordingly, the difference in expenditure between 2023-2024 and 2024-2025 is $447.2M. It should be noted that of that increase in 2024-2025, $217.3M is increased capital expenditure. The remaining increase of $229.9M covers recurring expenditure.
Government’s Budget, setting out the Estimates of Expenditure and Revenue for the financial year 2024-2025, was today laid in Parliament, together with a projected forecast for the current financial year 2023-2024. These will form the basis of the Parliamentary Debate to ensue from February 27th 2024 on the Appropriation Bill, 2024.
Revised Fiscal Balance 2023-2024
On the cash basis current revenue of $3,220.7 million is expected, of which $3,035.7 million is tax revenue and $184.9 million is non-tax revenue and grant income. Total expenditure is projected to be $4,145.7 million, of which $3,294.1 million is current expenditure, exclusive of amortization, and $189.6 million is capital expenditure. The revised deficit of $263.1 million, on the IFI basis, represents 2.0% of GDP at market prices, estimated at $13,038.0 million. The primary surplus for the financial year 2023-2024 is estimated to be $445.9 million or 3.4 % of GDP on the cash basis.
Overview 2024-2025
On the accrual basis, current revenue for the next fiscal year is projected at $3,724.4 million. On the cash basis current revenue is projected at $3,543.3 million, an increase of $322.6 million of 10.0% over the revised revenue of $3,220.7 million for the financial year ending March 31, 2024.
It is estimated that Government’s total expenditure for the financial year 2024-2025, on the accrual basis, will be $4,667.7 million. When converted to the cash basis, total expenditure is $4,592.9 million, an increase of $447.2 million from 2023 – 2024. Of the amount approved for the 2024-2025 financial year, $3,422.9 million represents current expenditure and $1,244.8 million represents capital expenditure and amortisation.
Expenditure on goods and services is expected to increase by $62.8 million over the revised figure for 2023-2024 to $635.3 million. Current transfers are projected to decrease by $61.8 million or 5.5% to $1,056.4 million.
The repayment of principal and interest on Government’s debt is expected to account for $1,608.2 million compared to the revised projection of $1,370.9 million.
When amortization of $817.8 million is taken into account, a deficit of $251.9 million on the cash basis is expected, representing 1.8% of GDP, estimated at $13,964.3 million.
The primary balance is projected to be a surplus of $558.6 million, representing 4.0% of GDP on the cash basis.
The Estimates for the 2024-2025 fiscal year include provision for the following activities:
- A current subvention of $100.9 million is being provided to the Queen Elizabeth Hospital for its operations.
- An amount of $10.4 million for the Elderly Care Programme.
- Invest Barbados has been allocated the sum of $8.2 millionto carry out its operations;
- $15.0 million has been provided for the CAF Road Rehabilitation Programme;
- An amount of $10.2 million has been provided for the Smart Energy Fund;
- A current subvention of $98.4 million and $32.7 million has been provided for economic costs and tuition fees respectively to the University of the West Indies;
- A current subvention of $20.6 million has been provided to the Child Care Board;
- A current subvention of $33.5 million has been provided to the Welfare Department;
- An amount of $2.6 million has been provided for the Fiscal and Growth councils;
- An amount of $9.8 million has been provided for the hosting of the ICC Men’s T20 World Cup 2024;
- An amount of $1.6 million has been provided for the Change Management Unit in the Ministry of Education;
- An amount of $4.6 million has been provided for the upgrade to Consent Bay boatyard and repairs to the west jetty and haul up facilities at the Bridgetown Fisheries complex;
- An amount of $3.0 million has been provided for the fire service mechanical workshop;
- An amount of $3.6 million has been provided for the West Wing of Parliament;
- An amount of $6.0 million is to be provided for the female dormitories at the Police Training School;
- An amount of $6.9 million has been provided for the Hope Agriculture Training Institute and the UWI Centre for Food Security and Entrepreneurship (China Aid Project) and
- An amount of $11.9 million has been provided for the schools’ digital technologies programme.
Ministry of Finance, Economic Affairs and Investment