Estimates debate starts on Monday
Government’s Budget, setting out the Estimates of Expenditure and Revenue for the financial year 2020-2021, was Wednesday laid in Parliament, together with a projected forecast for the current financial year 2019-2020.
These will form the basis of the Parliamentary Debate to ensue from February 24, 2020 on the Appropriation Bill.
On the cash basis current revenue of $2 952.8 million is expected, of which $2 756.1 million is tax revenue and $196.7 million is non-tax revenue and grant income. Total expenditure is projected to be $2 887.5 million, of which $2 403.9 million is current expenditure, exclusive of amortisation, and $151.8 million is capital expenditure.
The revised surplus of $390.8 million, on the IFI basis, represents 3.7 per cent of GDP at market prices. The primary balance for the financial year 2019-2020 is estimated to be a surplus of $644.0 million or 6.1 per cent of GDP on the cash basis.
It is estimated that Government’s total expenditure for the financial year 2020-2021, on the accrual basis, will be $3 372.6 million. When converted to the cash basis, total expenditure is $3 309.0 million, an increase of $421.5 million or 14.6 per cent from the revised figure for 2019-2020. Of the amount approved for the 2020-2021, $2 589.6 million represents current expenditure and $719.4 million represents capital expenditure and amortisation.
Expenditure on goods and services is expected to increase by $60.8 million to $433.5 million. Current transfers are projected to increase by $15.7 million or 1.6 per cent to $981.1 million.
The repayment of principal and interest on Government’s debt is expected to account for $910.8 million compared to the revised projection of $578.7 million.
On the accrual basis, current revenue for the next fiscal year is projected at $3 142.6 million. On the cash basis current revenue is projected at $3 043.9 million, an increase of 3.1 per cent over the revised revenue of $2 952.8 million for the financial year ending March 2021.
When amortisation of $544.8 million is taken into account, a surplus of $279.7 million on the cash basis is expected, representing 2.6 per cent of GDP.
On the accrual basis the surplus is expected to be $489.3 million or 4.5 per cent of GDP. The primary balance is projected to be a surplus of $645.6 million or 6.0 per cent on the cash basis and $652.1 million on the accrual basis.
The Estimates for the 2020-2021 fiscal year include provision for the following activities: