Govt wants $742 million extra

Government’s decision to implement the 67th Report of the Salaries Review Commission which recommended increases in the salaries of ministers and other public officers was cited as one of the factors which caused government spending to rise $742 million over budget.

Another factor is the US $100 million allocated to the Caribbean Court of Justice. Trinidad and Tobago is to contribute the “lion share” to the maintenance of this court, Minister in the Minister of Finance Ken Valley told Parliament yesterday. Trinidad and Tobago would be making the largest contribution to the US $100 million fund- $31.6 million. Jamaica is being asked to contribute $28.7 million, Barbados $13.5 million, Guyana $8.8 million, Belize $3.7 million, Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia and St Vincent were being asked to contribute $2.2 million each. The Fund is a one-off payment which will be managed by the Caribbean Development Bank. He said the “noblesse oblige” principle (privilege entails responsibility) was being employed since Trinidad and Tobago, was a major beneficiary and was the best economy in the Caribbean. 

Valley was speaking on the motion to adopt the Report of the House Committee on proposals for the Supplementation and Variation of the 2003 Appropriation.  He said the major items of expenditure included establishment of the Caribbean Court of Justice - $199 million, settlement of arrears and implementation of the Report of the SRC- $184.6 million, increased appropriation to the Tobago House of Assembly for the 3year tourism plan - $18.3 million, annual subsidy to BWIA to replace revenue as a result of the decision to reduce the airfare on the airbridge- $20 million and an increase in the PSIP- $142. million. Valley said there was additional expenditure with respect to the social programme. He said  “given the Opposition’s criticisms to what is happening in crime” they should be happy to hear this since “this is the real answer to the crime issue.”

Valley said there was also $40 million to maintain government’s equity in PLIPDECO and  $16.9 million in support for the purchase of tickets on BWIA to support Government’s Latin American thrust. In the first phase, Costa Rica, Cuba and the Dominican Republic would be targed. He said the inaugural flight to Cuba takes place on June 24. Valley said government’s revenues of VAT saw a reduction as a result of the level of refund. By the end of April Government had spent $1.5 billion in VAT refund, having taken a decision to clear the backlog which was left by the previous administration. As a result of the Variation and Supplementation of its Appropriation, Government’s new budget deficit would be $568.353 million (.89 per cent of GDP) as opposed to the original deficit which was $618 million (1 per cent of GDP).  The motion is seeking approval to increase Government spending for the 2002/2003 Budget by $742 million as well as to vary 50.3 million- move money from one item of expenditure to another.