Estimates of Revenue and Expenditure laid in Parliament, debate starts Monday

Government’s Budget, setting out the Estimates of Expenditure and Revenue for the financial year 2021-2022, was laid in Parliament on Friday 18 February 2022, together with a projected forecast for the current financial year 2021-2022. These will form the basis of the Parliamentary Debate to ensue from February 21, on the Appropriation Bill.

Revised Fiscal Balance 2021-2022

On the cash basis current revenue of $2,625.2 million is expected, of which $2,477.3 million is tax revenue and $142.2 million is non-tax revenue and grant income. Total expenditure is projected to be $3,494.5 million, of which $2,827.7 million is current expenditure, exclusive of amortization, and $290.7 million is capital expenditure. The revised deficit of $493.2 million, on the IFI basis, represents 4.9% of GDP at market prices. The primary deficit for the financial year 2021-2022 is estimated to be $93.4 million or 1.0 % of GDP on the cash basis.  

Overview 2022-2023

It is estimated that Government’s total expenditure for the financial year 2022-2023, on the accrual basis, will be $3,735.6 million. When converted to the cash basis, total expenditure is $3,680.6 million, an increase of $186.1 million or 5.3% over the revised figure for 2021-2022.  Of the amount approved for the 2022-2023 financial year, $2,996.9 million represents current expenditure and $738.7 million represents capital expenditure and amortisation. 

Expenditure on goods and services is expected to increase by $76.0 million over the revised figure for 2021-2022 to $522.0 million. Current transfers are projected to decrease by $63.0 million or 5.6% to $1,059.6 million.

The repayment of principal and interest on Government’s debt is expected to account for $981.5 million compared to the revised projection of $775.9 million.

On the accrual basis, current revenue for the next fiscal year is projected at $3,206.6 million.  On the cash basis current revenue is projected at $2,813.3 million, an increase of 7.2% over the revised revenue of $2,625.2 million for the financial year ending March 2022.

When amortization of $480.5 million is taken into account, a deficit of $386.6 million on the cash basis is expected, representing 3.3% of GDP.

The primary balance is projected to be a surplus of $114.3 million or 1.0% on the cash basis and $426.0 million on the accrual basis.

The Estimates for the 2022-2023 fiscal year include provision for the following activities:

(i) A current subvention of $125.0 million is being provided to the Queen Elizabeth Hospital for its operations in addition to the $7.99 million for management of Covid-19;

(ii) Invest Barbados has been allocated the sum of $7.5 million to carry out its operations;

(iii) $6.0 million has been provided for the IDB Road Rehabilitation Programme;

(iv) $2 million has been provided for the Scotland District Road and Rehabilitation Project to be funded by the Chinese;

(v) $7.6 million has been provided for the CAF Road Rehabilitation Project;

(vi) An amount of $10.0 million has been provided for Programme Management – Covid-19;

(vii) $11.7 million has been provided to carry out capital works at Secondary Schools;

(viii) $7.5 million has been provided to the Primary Education Domestic programme;

(ix) An amount of $30 million has been allocated to the Barbados Water Authority to upgrade its reservoirs and the water distribution network.

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