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Rising oil and food prices affect budget

Published:Friday | March 14, 2008 | 1:41 PM

Two of the country’s financial analysts are raising concerns about the likely impact of rising oil and food prices and the public sector wage bill on the budget for the next fiscal year.

Financial analyst, Ralston Hyman said the government is likely to face a major challenge to source the funds for this year’s budget, which according to him is likely to amount to approximately $480 billion.

The government has sought international financing for the 2008/2009 budget, but according to Mr. Hyman the estimates of expenditure may have to be presented before the funding is secured.

He said the country needs a credible energy and food policy in order to combat the rising inflation levels.

Mr. Hyman is also recommending that the government place a greater level of priority on the ministries of Agriculture and Energy in the process.

The Finance Minister is slated to table the 2008/2009 Estimates of Expenditure when parliament resumes sitting on March 27.