First Supplementary Estimates for 2024/25 Tabled in the House of Representatives

• On Tuesday, October 8, Dr. the Hon. Nigel Clarke, Minister of Finance and the Public Service, presented the First Supplementary Estimates for the fiscal year 2024/25 in the House of Representatives. These estimates outline an increase in total government expenditure and payments of approximately $40.7Bn, which will be funded mainly through additional projected revenues and grants from both non-tax and tax sources.
• Clarke advised the House in his presentation that the increased expenditure is entirely due to recurrent budgetary expenses, where both debt and non-debt expenses have risen.
• Recurrent programme expenditures increased by $31.3Bn, reflecting an additional $11.8Bn, to initiate post-Hurricane Beryl recovery. There was also an increase in Shared Prosperity through Accelerated Improvement to our Road Network (SPARK) Project. The increased provisions are for designing, ordering pipes and other preparatory activities. Wages and salaries are also slated to increase by $11.6Bn, primarily due to higher than originally programmed third-year costs under the implementation of the restructured public-sector compensation system. Additionally, interest payments are estimated to be $9.6Bn higher than originally budgeted, reflecting increased interest payments on the domestic debt.
• The increased recurrent expenditure is partially offset by a $12.1Bn reduction in capital expenditure. The reduction in capital expenditure reflects a drop in the contingency provision for capital programs due to post-Beryl spending and preparations for the SPARK programme.
• The Minister emphasised that the hurricane significantly influenced these adjustments, leading to deviations in macroeconomic indicators from those expected during the budget preparation. The most notable change is the projected real GDP growth, which is now estimated to decline from a 1.8% expansion to a contraction of 0.2% for the fiscal year.

(Source: JIS)