Barbados government to debate budget next week.

BRIDGETOWN, Barbados, CMC – The Barbados government estimates that its total expenditure for the financial year 2023-2024 will be more than four billion dollars (One Barbados dollar=US$0.50 cents).

The Government, which controls all 30 seats in the House of Assembly, Tuesday presented the Estimates of Expenditure and Revenue for the financial year ahead of the parliamentary debate that will begin on February 20.

“It is estimated that Government’s total expenditure for the financial year 2023-2024, on the accrual basis, will be BDS$4,249.3 million. When converted to the cash basis, total expenditure is BDS$ 4,160.6 million, an increase of 13 percent from the revised figure for 2022-2023. Of the amount approved for 2023-2024, BDS$3,849.5 million represents current expenditure, and BDS$311.1 million represents capital expenditure,” according to a government statement.

It said expenditure on goods and services is expected to decrease by BDS$0.3 million to BDS$576.5 million and that current transfers are projected to increase by BDS$10.4 million to BDS$1,099.1 million.

The statement said that the repayment of principal and interest on the Government’s debt is expected to account for BDS$1313.6 million compared to the revised projection of BDS$1,124.9 million.

“On the accrual basis, current revenue for the next fiscal year is projected at BDS$ 3,499.9 million. On the cash basis, current revenue is projected at BDS$3,318.7 million, an increase of 2.5 percent over the revised revenue of BDS$3,236.9 million for the financial year ending March 2023.”

The Ministry of Finance and Economic Affairs statement said that when amortization is excluded, a deficit of BDS$ 179.9 million on a cash basis is expected, representing 1.4 percent of gross domestic product (GDP).

“On the accrual basis, the operating deficit is expected to be BDS$89.3 million or 0.7 percent of GDP. The primary balance is projected to be a surplus of BDS$474.2 million or 3.7 percent of GDP on the cash basis.”

According to the statement, the revised fiscal balance for the 2022-2023 fiscal year shows that on a cash basis, current revenue of BDS$3,236.9 million is expected, of which BDS$3,047 million in tax revenue and BDS$189.9 million is non-tax revenue and grant income.

“Total expenditure is projected to be BDS$3,504.9 million, of which BDS $3,033.7 million is a current expenditure, exclusive of amortization, and BDS$471.2 million is capital expenditure. The revised deficit of BDS$268 million, on the IFI basis, represents 2.2 percent of GDP at market prices.

“The primary surplus for the financial year 2022-2023 is estimated to be BDS$233.0 million or two percent of GDP on the cash basis,” the statement noted.