Energy Ministry budget jumps by $712 million

This huge disparity came to light in the national Public Accounts for 2004 which were laid in the Senate on Tuesday.

No other ministry had such a vast variation between its original allocation and its final expenditure.

The document listed the original estimate as $52 million, after which, later that year, a supplementary amount of $712 million was addded to make a total approved estimate of $765 million. By the end of fiscal 2004, the ministry had actually spent $763 million.

Notes to the accounts explained what had happened to the $712 million, stating: "Payment of shortfall in subsidy re Sale of petroleum products — Petroleum Marketing Company Ltd (NP)."

In a debate in the Senate last September, Junior Minister of Finance, Conrad Enill, explained that the $712 million was being used to pay off an accumulated debt which NP owed Petrotrin. When the price of gasoline on the open market rises above the price for which it is sold at the pumps to the motoring public, NP pays a subsidy to Petrotrin for the difference.

These subsidies had accumulated to $712 million, which the Government was paying off in one sweep.

Other ministries spent substantially more than their original allocation.

The Ministry of Finance was originaly alloted $1.79 billion, which was later revised upwards to $3.19 billion, with the final actual expenditure being $3.13 billion.

The Ministry of Health was originally allocated $2.84 billion which was then revised downwards to $2.66 billion, for a final expenditure of $2.53 billion.

Likewise, the Ministry of Health was originally alloted $1.64 billion, which was revised to $1.59 billion, for a final expenditure of $1.57 billion.

The Ministry of Social Development had a drastic cut in its original allocation of $37 million to a final actual expenditure of just $17 million.