Ken Valley: What Govt spending spree?

Sources have said Cabinet is yet to make a firm decision about a specific Budget date but September 26 seems to be the most feasible date at this stage. However they said this could change (earlier or later date) depending on how Budget preparations proceed. The Prime Minister had previously hinted at an earlier Budget due to the absence of Junior Finance Minister Conrad Enill and other key persons involved in the Budget’s preparation from the country in October.

Since the PNM returned to power in 2001, the annual budget has been presented in Parliament in October.

Valley, who is also a Minister in the Ministry of Finance, told Newsday there was absolutely no truth to reports alleging that the International Monetary Fund (IMF) was warning Government about high levels of public spending.

Referring to the $3 billion of additional funding which Government requested and which was approved by Parliament, Valley said $1 billion of these monies went into the Interim Revenue Stabilisation Fund and another $1.2 billion went into internal transfers with no outlay of cash.

The minister explained this meant there was an $800 million real increase in allocation, not spending. Valley added that when Manning presents the Budget for the next fiscal year, it would be shown that Government’s actual expenditure would be much less than the $27 billion allocated in the 2004/2005 Budget. Indications are that the Ministries of Education, Health, National Security, Works and Transport and Science, Technology and Tertiary Education will once again be in line for significant financial allocations in the 2005/2006 Budget, which some financial experts speculate may be around or exceed last year’s $27 billion budget.