Jan 2013 Financial News

T&T’s budget deficit slashed by $3.5b

Jan 24, 2013

The 2012 projected budget deficit of $6.6 billion has been slashed to $3.1 billion, Finance Minister Larry Howai said on Tuesday in Parliament. He did so in presenting a supplemental bill to vary the 2012 appropriation bill by $1.2 billion. Parliament’s Finance Committee met on the issue before the sitting. Subsequently, a special Cabinet meeting was called to approve the bill before it was presented to Parliament, Communications Minister Jamal Mohammed said.

Howai said the finance bill being debated was for supplementation and variation of the 2012 appropriation by $2 billion, to write off losses of $128, 530 approved by Cabinet in 2012 and transfer funds of $698.7 million between sub-heads of expenditure for 2012. He said the fiscal operations of 2012 were now substantially finalised and the deficit was now $3.1 billion, much smaller than the projected $6.6 billion in the budget presentation.

That moved the deficit from 4.3 per cent of GDP to 2.0 per cent, he said. “However, the supplementary appropriation of $1.5 billion does not further exacerbate the fiscal deficit of 2012,” Howai added. He said the deficit reduction was achieved by higher than projected revenue of $1.2 billion—including higher oil revenue—and lower than expected expenditure of $2.3 billion.

Howai said total revenue for 2012 was projected at $46.9 billion and expenditure was $54.6 billion, resulting in an anticipated deficit of $7.6 billion. In September 2012 when the 2013 budget was being prepared, he said a final projection for 2012 was prepared to include in the draft estimates of 2013. He said revised revenue then was $47.7 billion and expenditure of $54.4 billion, yielding an anticipated deficit of $6.7 billion.

He said the funds were needed for four National Security helicopters, and housing funds for Udeccott on loans and a $720 million bridging facility for the Chancery Lane complex. It also included funding for financial obligations for the extension of the San Fernando to Pt Fortin Highway.

Expenditure included for losses included the write-off of $51,025 representing overpayment to an investigator in the Attorney General’s MInistry over 1983 to 2001, he said. Howai was criticised as “Last Minute Larry” by PNM MP Colm Imbert, who knocked the finance committee meeting and the debate of the bill shortly after.


Source:
Gail Alexander
Trinidad Guardian
Thursday January 24, 2013

http://www.guardian.co.tt/news/2013-01-24/tt%E2%80%99s-budget-deficit-slashed-35b