Shaw to reveal revamped Budget plans on Monday
Published:Thursday | August 11, 2011 | 12:00 AM
Arthur Hall, Senor Staff Reporter
Government ministers should know on Monday the proposed adjustments in the budgets for their ministries for this fiscal year.
Finance Minister Audley Shaw is to present a revamped spending plan to his Cabinet colleagues when they meet on Monday, but government sources yesterday claimed that until then, most ministers will be kept out of the loop.
According to the sources, the finance ministry will make the necessary chops and changes and present the plan to the Cabinet for approval.
"Ministers are not being asked where they can cut. Instead, Shaw will make the changes and seek Cabinet's approval," a government insider told The Gleaner yesterday after it was confirmed that the new spending plan is being finalised for Cabinet discussion.
Minister with responsibility for information, Daryl Vaz, had earlier told journalists that the Supplementary Estimates for the 2011-2012 fiscal year would be high on the agenda when the Cabinet resumes sittings on August 15.
But Vaz gave no indication of what changes would be made as Shaw makes adjustments to accommodate a $10.4-billion increase in payments to public-sector workers and lower-than-anticipated revenue collections.
"Cabinet is Monday and I am sure that even in these days leading up to Monday, continued discussions and tweaking are taking place in regard to the downgrade (of the United States credit rating) and what is possibly the impact of that," Vaz said during the weekly post-Cabinet media briefing.
"I am sure that if needs be, we may meet not only on Monday, but after that just to make sure because ... of the sensitivities of the issues and the times based on the financial crisis that the world is in," Vaz added.
Looming cuts confirmed
Shaw had used an address to the nation on Sunday to confirm looming cuts in the Government's spending plans in many areas.
"These adjustments involve cuts to capital and recurrent expenditure across ministries, departments and agencies," Shaw said as he prepared Jamaica for another round of belt tightening.
"This is because a sacrosanct part of our (IMF) agreement is the containment of expenditure within the limits of the resources available. This is the only honest approach we can take towards achieving a solid future," said Shaw.
The finance minister's problems have been compounded with lower-than-projected tax revenue and a slowdown in foreign aid.
Latest data from the finance ministry has revealed that Jamaica experienced a shortfall of $2.4 billion in tax collection for the first quarter of the fiscal year.
Foreign aid to Jamaica was also $2.1 billion, or 76 per cent, below projection in the quarter ending June.
Shaw responded by cutting planned capital and recurrent expenditure by $5.6 billion from April to June while $3.1 billion was saved by lower-than-projected domestic debt-servicing charges.