Robert Hart, Parliamentary ReporterTHE MINISTRY of Finance and Planning has developed a new procedure to ensure that statutory deductions owed through government ministries and agencies are remitted. This, in the face of yearly multibillion dollar debts incurred by state bodies.
The Gleaner has learnt that a decision to subtract the statutory payments from payouts to the state entities is expected to net about $20 billion in savings each year.
According to a government source, the savings should come from limiting the transfer of funds between the Finance Ministry and other bodies, since the funds are to be returned to that ministry in any event.
During yesterday's sitting of Parliament's Public Accounts Committee (PAC), the new procedure was revealed when Grace Allen-Young, permanent secre-tary in the Ministry of Health, indicated that her ministry would no longer be responsible for ensuring that income tax and education tax is paid back to the Finance Ministry.
Mrs. Allen-Young was responding to questions posed by PAC members about reports that statutory deductions were still outstanding after last year's revelation that the Health Ministry owed a whopping $3.5 billion in taxes.
STATUTORY DEDUCTIONS
"We no longer receive funds with statutory deductions included, so by (financial year) 2005/2006, the matter should be dealt with," the permanent
secretary told the PAC.
Mrs. Allen-Young also pointed out that the wiping out of the Health Ministry's debt to government should be assisted by the provision of $2.5 billion, in the 2004/2005 budget, to pay
off the outstanding statutory deductions.
Prodded by PAC chairman Audley Shaw, she also indicated that, of about $1 billion owed to suppliers of goods and services last year, the Ministry had cut
its debt to approximately $300 million.
