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A view of Bridgetown, the capital of Barbados

Barbados presents $3.4 billion budget for coming financial year

A view of Bridgetown, the capital of Barbados

The Barbados government is projecting total expenditure for the financial year 2020-21 to be BDS$3,372.6 million (One Barbados dollar=US$0.50 cents) according to the Estimates of Expenditure and Revenue laid in the Parliament.

(Photo: businessinsider.com)

The parliamentary debate is schedule from February 24.

According to a government statement, when converted to the cash basis, total expenditure is BDS$3,309 million, an increase of BDS$421.5 million or 14.6 per cent from the revised figure for 2019-2020.

It said of the amount approved for 2020-2021, an estimated BDS$2,589.6 million represents current expenditure and BDS$719.4 million represents capital expenditure and amortisation.

“Total expenditure is projected to be BDS$2,887.5 million, of which BDS$2,403.9 million is current expenditure, exclusive of amortization, and BDS$151.8 million is capital expenditure.”

– The Ministry of Finance, Economic Affairs and Investment

The Mia Mottley government’s expenditure on goods and services is expected to increase by BDS$60.8 million to BDS$433.5 million.  Current transfers are projected to increase by BDS$15.7 million or 1.6 per cent to BDS$981.1 million.

The repayment of principal and interest on Government’s debt is expected to account for BDS$910.8 million compared to the revised projection of BDS$578.7 million, the statement said, noting that on the accrual basis, current revenue for the next fiscal year is projected at BDS$3,142.6 million.

Prime Minister of Barbados, Mia Mottley

“On the cash basis, current revenue is projected at BDS$3,043.9 million, an increase of 3.1 per cent over the revised revenue of BDS$2,952.8 million for the financial year ending March 2021. When amortisation of BDS$544.8 million is taken into account, a surplus of BDS$279.7 million on the cash basis is expected, representing 2.6 per cent of GDP.”

The statement said on the accrual basis, the surplus is expected to be BDS$489.3 million or 4.5 per cent of GDP. The primary balance is projected to be a surplus of BDS$645.6 million or six per cent on the cash basis and BDS$652.1 million on the accrual basis.

The Estimates for the 2020-2021 fiscal year include the provision for a current subvention of BDS$116 million to the Queen Elizabeth Hospital, a subvention of BDS$114.7 million to the University of the West Indies (UWI) and BDS$3.5 million for the Inter-American Development Bank (IDB) Road Rehabilitation Programme.

The Ministry of Finance, Economic Affairs and Investment noted that under the revised fiscal balance 2019-2020, on the cash basis, current revenue of BDS$2,952.8 million is expected, of which BDS$2,756.1 million is tax revenue and BDS$196.7 million is non-tax revenue and grant income.

“Total expenditure is projected to be BDS$2,887.5 million, of which BDS$2,403.9 million is current expenditure, exclusive of amortization, and BDS$151.8 million is capital expenditure,” it added.