Brief Overview
The Honourable Christopher Sinckler, Minister of Finance and Economic Affairs, delivered the Financial Statements and Budgetary Proposals of the Government of Barbados on Tuesday, June 26, 2012.
The Minister highlighted the approach adopted to managing the economy in recessionary times and specified the additional policy interventions required, to assist the country in achieving its main objectives of maintaining stability in the economy by managing the foreign exchange function; meeting the revenue and expenditure targets set out in the Medium Term Fiscal Strategy (“MTFS”); raising the level of investment in traditional and new economic sectors to grow the economy at a faster rate; continuing the programme for national economic restructuring in strategic areas; while protecting the most vulnerable in the society from the worst effects of the economic challenges faced.
Economic Overview
For the review period ending March 31, 2012, the fiscal balance was in deficit to the amount of $389 million, 4.5 per cent of GDP at market prices of $8,626 million. The deficit for the corresponding period in 2010-2011 was $720 million, 8.8 per cent of GDP at market prices of $8,208 million.
Current revenue was $2,513 million, an increase of $212 million or 9.2 per cent from the amount recorded during 2010-2011. This increase was $23 million below the original projection for the period. Current expenditure, exclusive of amortisation of $455 million, decreased by $103 million or 3.5 per cent over the 2010-2011 figure to $2,819 million.
Projected revenue for the period 2012-2013 on the accrual basis is estimated at $2,656 million, and on a cash basis at $2,620 million, 29.1% of GDP estimated at $9,293 million. Current expenditure on the accrual basis, exclusive of amortisation of $441 million is estimated at $2,933 million and on a cash basis at $2,890 million.
The Government is projecting a deficit of $412 million on the cash basis excluding amortisation, representing 4.4% of GDP. On the accrual basis, a negative net operating balance of $326 million representing 3.5% of GDP is estimated…
