Governor-General Sir Howard Cooke (right), moving towards Gordon House after inspecting the Guard of Honour to mark the ceremonial opening of Parliament yesterday. At left is Rear Admiral Hardley Lewin, Chief of Staff of the Jamaica Defence Force. - Norman Grindley /Staff Photographer MINISTER OF Finance and Planning, Dr. Omar Davies, yesterday presented Parliament with a $329.8 billion proposal for Government spending for the new financial year, which starts today.
This 26 per cent increase over his budget proposal last year should lead to modest expectations for the provision of goods and services. However, most of the $50 billion increase will go to pay debt.
Debt payment should amount to $228.4 billion, an increase of $58.9 billion, or 35 per cent over the amount spent last year. In this budget, 69 cents in every dollar of spending will go to pay debt.
Inflation for the 2003/04 fiscal year is expected to be 14-15 per cent and the Government is targeting a rate no higher than nine per cent for the new fiscal year in line with its commitment to the public sector.
Non-debt spending, the amount which actually goes to pay for Government operations, amounts to $101.4 billion.
"Preliminary indications are, there has not been any improvement in terms of social welfare programmes, poverty alleviation or training," said Danny Roberts, vice-president of the Jamaica Confederation of Trade Unions.
"Such programmes are important for ensuring that the economy does not slide into an increasing level of social exclusion."
Some ministries have received modest budgetary allocations, but given the rate of inflation, most will be getting less in real terms.
The Ministry of Finance and Planning is a big exception, with its $243 billion budget. This is a $42.8 billion increase, but this is mostly for debt management.
The Health Ministry has a $15.6 billion allocation, up $4.8 billion over the proposal last year.
Education, Youth and Culture gets $30.2 billion, an increase of $676.9 million.
The National Security Ministry has a $15.2 billion allocation, down $276 million.
The Ministry of Local Government, Community Development and Sport has a $4.8 billion spending proposal, up $50.9 million over last year's proposal.
But, Ministry of Industry and Tourism has been cut by $20.5 million to $1.9 billion.
REVIEW OF SPENDING PROPOSALS NEXT WEEK
The Standing Finance Committee of the House of Representatives will start reviewing the spending proposals next week.
"Of course the greater concern now is how the budget is going to be funded," Mr. Roberts said. "One has to try to avoid the jeopardy that the working people may face, of seeing a cut in social welfare programmes and at the same time being asked to pay more in taxes."
Dr. Davies will present his proposals on how he plans to finance expenditures when he opens the Budget Debate on April 15.
