Government’s Budget, setting out the Estimates of Expenditure and Revenue for the financial year 2025-2026, was laid in Parliament, on Tuesday, February 11, together with a projected forecast for the current financial year 2024-2025.
These will form the basis of the Parliamentary Debate to ensue from February 17th 2025 on the Appropriation Bill, 2025.
On the cash basis, current revenue of $3,773.5 million is expected, of which $3,573.5 million is tax revenue and $200 million is non-tax revenue and grant income. Total expenditure is projected to be $3,970.8 million, of which $3,287.7 million is current expenditure, exclusive of amortization, and $683.1 million is capital expenditure.
The revised deficit of $251.9 million, on the IFI basis, represents 1.3% of GDP at market prices, estimated at $13,964.3 million. The primary surplus for the financial year 2024-2025 is estimated to be $558.0 million, or 4% of GDP on the cash basis.
On the accrual basis, current revenue for the next fiscal year is projected at $3,980.7 million. On the cash basis current revenue is projected at $3,883.8 million, an increase of $110.3 million of 2.9% over the revised revenue of $3,773.5 million for the financial year ending March 31, 2024.
It is estimated that Government’s total expenditure for the financial year 2025-2026, on the accrual basis, will be $5,135.9 million. When converted to the cash basis, total expenditure is $5,080.7 million. Of the amount approved for the 2025-2026 financial year, $3,509.5 million represents current expenditure and $1,626.5 million represents capital expenditure and amortisation.
Expenditure on goods and services is expected to increase by $79.9 million over the revised figure for 2024-2025 to $645.5 million. Current transfers are projected to increase by $45.1 million or 4.3% to $1,087.9 million.
The repayment of principal and interest on Government’s debt is expected to account for $1,769.8 million compared to the revised projection of $1,591.0 million.
The primary balance is projected to be a surplus of $613.6 million, representing 4.4% of GDP (estimated at $13,964.3 million) on the cash basis.
The Estimates for the 2025-2026 fiscal year include provision for the following activities:
- A current subvention of $120.9 million is being provided to the Queen Elizabeth Hospital for its operations.
- An amount of $94.6 million for the Social Empowerment Agency inclusive of:
- $55.9 million to finance the operations of the Child Care Board, National Assistance Board, Community Elderly Care Programme etc.
- $33.5 million to cover grants to individuals normally operated by the Welfare Department
- Invest Barbados has been allocated the sum of $15.4 million to carry out its operations;
- $13.0 million has been provided for the CAF Road Rehabilitation Programme;
- An amount of $20.9 million has been provided for the Smart Energy Fund;
- A current subvention of $98.4 million and $20.7 million has been provided for economic costs and tuition fees respectively to the University of the West Indies;
- An amount of $8.5 million has been provided for the Change Management Unit in the Ministry of Education;
- An amount of $11.0 million is to be provided for the female dormitories at the Regional Police Training Centre;
- An amount of $16.4 million has been provided for the Hope Agriculture Training Institute and the UWI Centre for Food Security and Entrepreneurship (China Aid Project) and Ministry of Finance, Economic Affairs and Investment.
(PR)
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