Budget Day
Published:Thursday | April 14, 2011 | 12:00 AM
Shaw to outlineGov't's spending plans for new fiscal year
Estimates could signal payment of outstanding civil-servant wages
Arthur Hall, Senior Staff Reporter
Anxious public-sector employees clamouring for the Government to pay them outstanding wages should find out today if they will be paid this fiscal year.
Finance Minister Audley Shaw will this afternoon table in Parliament the Estimates of Expenditure for the 2011-2012 fiscal year outlining the Government's spending plans.
While debt service is again expected to eat up the lion's share of the Budget, big-ticket items such as health, education and national security are also expected to figure prominently in the spending plans.
But most interest will be on the Government's allocation for public-sector wages and salaries.
With the Government's wage bill being in the $138-billion ballpark for the just-ended fiscal year, any major spike could signal the payment of the seven per cent increase that has been outstanding since 2008.
However, a sharp decline could indicate that the Bruce Golding administration is pushing forward with the long-expected cut in the number of civil servants under the Public Sector Modernisation Programme.
Already trade-union leaders have warned that they are not prepared to wait much longer to get the outstanding amount and Shaw could find himself and the Government in a pickle if the money to pay the long overdue wages is not allocated.
Up to yesterday, government ministers were huddled in an unscheduled Cabinet meeting finalising this ticklish Budget.
Last year, Shaw tabled a $500-billion Budget, but was forced to chop and change twice during the year before ending with a $504-billion spending plan.
Among the adjustments made by Shaw last year was more money to pay nurses, teachers and utility bills.
Shaw also had to find millions to pay for the May 2010 incursion by the security forces into west Kingston, while the Manatt-Dudus commission of enquiry left him with an almost $100-million bill that he had not budgeted for.
But the finance minister enjoyed some savings on interest payments and expenditure on several programmes.
With the economy still struggling and independent analysts warning that there is not much room for tax increases, it is expected that Shaw will present an almost flat spending plan.
The Budget will face the scrutiny of the Standing Finance Committee of the House next week before Shaw tells the country how he intends to finance it on April 28.
Opposition Spokesman on Finance Dr Omar Davies will respond to Shaw on May 3.
Today's activities at Gordon House will begin with the ceremonial opening of Parliament, which signals the start of the legislative year.
This will be highlighted by the presentation of the Throne Speech outlining the Government's plans for the year by Governor General Sir Patrick Allen.