Enill: Govt pre-Budget finances in good shape

Reminding journalists that Parliament approved Government expenditure of approximately $27 billion for the current fiscal year, Enill said information provided by the Finance Ministry’s budget division for the period October 2004 to July 31, 2005 showed that Government had kept its expenditure well in check during the period, and had some $8 billion in hand to run its affairs for August and September.

Listing the various figures allocated and expended during the period, Enill said the information shows that expenditure was less in every case and, by the end of July, Government’s total expenditure for the current fiscal year was in the region of $18.71 billion. Recalling the recent controversy over a draft 2005 International Monetary Fund Article IV report (which was subsequently proven to show no evidence of financial squandermania), Enill said there needed to be a clear distinction between monies allocated and monies spent by Government and many persons failed to make that distinction.

Asked about the status of 2005/2006 Budget preparations, Enill said things were going according to plan with Government ministries having submitted their final proposals last Friday, those proposals are being technically evaluated and a policy meeting will be held at the Finance Ministry today to move the process forward.

While stating that Government will not announce a final Budget date until it is sure it can be implemented and the law allowed for a budget to be presented before the end of October, Enill said Government is working with a tentative Budget date (which some speculate to be September 28) and "will be delivering a budget before the end of September." The upcoming budget is expected to be at least $31 billion.

The minister also indicated that Government will be looking more at infrastructure in the new fiscal year, having focused on placing more money into individuals’ pockets (through lower taxes), stimulating more economic activity (lower corporate taxes), strengthening the social safety net and improving delivery in key areas (education, health, national security, housing)

Enill said Prime Minister Patrick Manning has articulated that infrastructural projects falling under the ambit of Government ministries would be implemented by specific companies while the ministries would deal with policy issues. The minister said while this approach has come in for a lot of flak, Government was certain that this was the best mechanism to ensure delivery to the population.