Davis... demanding greater efficiency from public agencies.
John Myers Jr., Staff Reporter
ACTING ON a directive from Cabinet, the Ministry of Finance is conducting a financial re-view of all ministries to determine the extent of the Govern-ment's indebtedness.
Instruction has also been given for all ministries to prepare a proposal outlining a mutually acceptable payment strategy with creditors in order to clear up all outstanding debts, said a statement issued yesterday by Dr. Carlton Davis, Cabinet Secretary.
Dr. Davis, head of the Public Service, also warned that greater efficiencies would be demanded of public agencies as Govern-ment tries to deal with an environment of what he called "declining budgets."
The statement comes behind reports this week that some schools were still awaiting funds from the Ministry of Education and facing closure, and of teachers' salaries being delayed.
Previous reports had highlighted ministries like Transport and Works owing contractors half a billion dollars in accumulated debts, National Security owing a similar amount to Jamaica Defence Force and Jamaica Constabulary creditors, and Health having liabilities amounting to $3 billion.
The Government is working with a $261 billion budget, but since April, its expenditures have been running consistently above revenues.
EARNINGS SHORTFALL
October figures released yesterday by the Finance Ministry show that the Government has spent almost $99 billion since the start of the fiscal year, but has only taken $74.7 billion into the treasury representing an earnings shortfall of over $24 billion.
Tax revenues continue to perform below expectations, coming in at $3.2 billion below projections in the first seven months of the fiscal year; while Govern-ment spent $147 million more than budgeted.
At the same time, the Finance Ministry is grappling with a mounting debt burden which topped $656 billion in October.
The performance of the debt - which has grown by more than $50 billion since April - results from the extensive borrowing that Government has engaged in to finance maturing debt payments and central government operations.
"We have to constantly evaluate and make changes to how we work and what we do. Ministries will have to practice tight fiscal management, while ensuring that the quality of public services are safeguarded," said Dr. Davis whose statement was issued via the Government's news agency JIS.
Last week Finance Minister Dr. Omar Davies, speaking at a breakfast meeting put on by PanCaribbean Merchant Bank at the Terra Nova Hotel, said the substantial rise in the Government's wage bill was a main factor behind the country's indebtedness.
Dr. Davies said that since the 1999/2000 fiscal year, wage payments in the public sector have increased by an astonishing 61 per cent. At the same time, he said rationsalisation measures recommended by a KPMG Strategic Review for five Ministries and cost-saving measures recommended in the Orane Report, have for the most part been implemented.
The Cabinet Secretary said "the reviews of the Ministries of Education, Youth and Culture, Health and Transport and Works have already been completed."
All reviews should be completed by the end of next week, he said.
