Late Budget looms

Government is likely to present its 2003/2004 Budget on October 6, sources said yesterday. Prime Minister Patrick Manning confirmed on Thursday that “it was very unlikely” that Government would not be presenting the Budget before September 30, the end of the fiscal year. Government is likely to present the Appropriation Bill “early” in the new fiscal year. Asked why, he replied that it was “the Government’s option in accordance with the law.”  Manning stressed that Government would be meeting the constitutional deadline of October 31. He said as a parliamentarian, he recalled that there were many occasions when the Budget was presented in the first month of the new fiscal year. The Prime Minister, who is one of four finance ministers, stated: “There is no keepback. That is our option.” He said there were commitments at this time in the Finance Ministry namely the Commonwealth Finance Ministers meeting and the meeting of the IMF and the World Bank. “In accordance with the schedule we have worked out, we consider it most propitious to present the Budget early in the new fiscal year.”

Newsday investigations revealed that Government has not only one but two deadlines to consider. Both deadlines come around the same time — within two weeks of each other — the prorogation of Parliament — which has a legal deadline of October 16, and the Budget deadline of October 31. The debate on the Budget and passage of the Appropriation Bill has to come either before or after the prorogation. The Parliament has to be given at least 11 “clear” days for the presentation, debate and passage of the Bill through both Houses. In short, Government would either have to go for an early prorogation of Parliament, or present the Budget at least 11 working days before October 16 in order to beat the deadline for the prorogation.
If Government sticks to the October 6 date, it would not make the deadline. But it has the option of proroguing the Parliament earlier and presenting the Budget in the new session of Parliament. That way it would also make the October 31 constitutional deadline for the presentation of the Budget. Attorney General Glenda Morean also pointed out yesterday that in setting the parliamentary agenda for the rest of the session, Government realised that it did not make sense to fill the Order Paper since the remainder of this session would be short. All business on the Order Paper lapses once there is a prorogation.

Therefore, it is expected that legislation such as the Caribbean Court of Justice Bills and papers such as the declaration forms for the Integrity in Public Life Bill would be presented in the new session. Sources suggested that the Ministry of Finance’s lack of readiness with the Budget might be related  to the question of fulfilling the promise to pay NIS pensioners $1,000 a month by the start of the fiscal year, October 1. In order to make this proposal self-financing, it would mean an increase in contributions both on the part of the individual worker as well as the employer, something which neither parties would support. But the Prime Minister Patrick Manning made the pledge at the PNM’s Local Government election launch and on Thursday he reiterated that from October 1 all NIS pensioners would receive $1,000 a month.