Breaking down the Budget

How does the Budget break down?

Last week, the government outlined the estimates of budgeted expenditure to be approved by Parliament for the 2016/2017 fiscal year. The figures are preliminary and are subject to change. Recall last year the actual budget expenditure was $808 billion, $166.5 billion more than the $641.5 originally budgeted for. The increase in actual over-budgeted expenditure was predominantly as a result of the PetroCaribe buy-back, which was not originally tabled. This year, the budget has contracted, total budget expenditure is estimated to be approximately $580 billion; $60 billion less than that which was tabled last year and $228 billion less than what was actually outlaid for the 2015/2016 FY.

Total recurrent expenditures for the 2016/2017 FY are an estimated $459.379 billion, up from $432.579 billion for 2015/2016 FY. Capital expenditure has fallen significantly from $186 billion last year to $91 billion; less than half of what it was last year. Interest payments on debt have increased to approximately $138.5 billion, up from $131.6 billion, in 2015/2016 FY.

How have recurrent expenditures changed?

Total recurrent expenditure to the Ministry of Finance and Public Sector (formerly the Ministry of Finance and Planning) for 2016/2017 FY is $5 billion more than the $200 billion approved last year. Total recurrent expenditure for the Ministry of National Security is $5.5 billion more than the $49 billion approved last year. The office of the Prime Minister is budgeted to receive $2.1 billion this year, $180 million less than it received last fiscal year. Recurrent expenditure for the Ministry of Education, Youth and Information, formerly the Ministry of Education, is $9 billion more than the $81 billion allotted last year. The Ministry of Science, Energy and Technology (formerly the Ministry of Science, Technology, Energy and Mining) is allocated $2.6 billion less than 2016/2017 FY. Allotment to the Ministry of Transport and Mining is approximately $2.3 billion. The change in the names of and responsibilities to be carried out by some of the ministries has made it a little difficult to compare year on year; nevertheless, the information remains vital.

The Ministry of Agriculture and Fisheries, that received $4.26 billion for recurrent expenditure last year, and the Ministry of Industry, Investment and Commerce are to receive just $1.96 billion. They are now known as the Ministry of Industry, Commerce, Agriculture and Fisheries. They are to receive $5.3 billion in total for recurrent expenditure. Recurrent expenditure for the Ministry of Culture, Gender, Entertainment and Sports is an estimated $2.3 billion. Formerly, allotment to the Ministry of Youth and Culture was approximately $2 billion while allotment to the Ministry of entertainment and Tourism was 1.7 billion.

How have the allocations for Capital Expenditure changed?

The newly formed Ministry of Economic Growth and Job Creation has been allotted an estimated $10.7 billion plus $533 million, thus a total $11.2 billion. The Ministry of Finance and the Public Service has been allotted approximately $81.3 plus $3.3 billion this year, more than 100 per cent less than the $178.6 plus $2.9 billion approved last year. The Office of the Cabinet is budgeted to receive $360 million dollars more this year than the $370.2 million approved to it in the 2015/2016 budget. $1.2 and $2.3 billion have been allocated to the Ministry of National Security, up from approximately $900 million and $1.6 billion for the 2015/2016 FY. Allocations to the Ministry of Justice are approximately $200 million more than last year. The office of the Prime Minister is budgeted to receive $354 million more this year for capital expenditure. The Ministry of Industry, Commerce, Agriculture and Fisheries is to receive 2.8 billion for capital expenditure.

What about education and health?

The Ministry of Education, Youth and Information, formerly the Ministry of Education, is budgeted to receive $1.2 billion plus $1.4 billion as opposed to the $477 million and 1.5 billion last year.

The Ministry of Health is to receive $28 billion plus 1.5 billion; an increase from the $10 billion plus $1.1 billion it received for capital expansion A and B, respectively. Health has been a significant issue and we hope public health care will improve across the island. Last year, money was allotted to implement piped medical gas infrastructure, to establish Local Area Network in hospitals and connect all hospitals to a wider area network, expand paper health records and improve storage, install cold rooms in medical health facilities. How much of this was done, we don't know.