NEWS
Government Spending Set to Increase: Financial Outlook 2024-2025
Government Spending to Surge: Key Allocations Revealed
Government spending is set to increase by over $1 billion in the upcoming financial year, starting on April 1st. The Estimates of Expenditure and Revenue for 2024-2025, presented in Parliament, highlight key areas of expenditure. This includes an additional $237.3 million earmarked for debt repayment by the Ministry of Finance, Economic Affairs, and Investment. Other notable allocations outlined are $131.1 million for the University of the West Indies, $100.9 million for the Queen Elizabeth Hospital, and $9.8 million for hosting the International Cricket Council’s Men’s T20 World Cup 2024.
Financial Outlook: Substantial Rise in Government Spending
The total projected expenditure for the new financial year amounts to $4.66 billion on the accrual basis and $4.59 billion on the cash basis. This represents a substantial increase from the previous financial year, with a $1.1 billion rise in overall spending on the cash method. Current expenditure is estimated at $3.42 billion, with $1.24 billion allocated for capital expenditure and amortization.
Debt repayments, including interest, are expected to increase to $1.6 billion, up from the revised projection of $1.37 billion for the current financial year. With debt payments excluding interest taken into account, a fiscal deficit of $251.9 million on the cash basis is projected for the next financial year.
Government Spending Priorities and Revenue Projections
On the revenue side, an increase is expected, with estimates reaching $3.72 million on the accrual basis and $3.54 billion on the cash basis. This represents a ten percent increase over the revised revenue for the current financial year. The primary balance, which factors in revenues minus all expenditures except debt payments, is projected to be $558.6 million.
Various sectors and programs will receive funding, including $10.4 million for the Elderly Care Programme, $8.2 million for Invest Barbados, $15 million for the CAF Road Rehabilitation Programme, and $10.2 million for the Smart Energy Fund. These allocations indicate a diverse range of priorities addressed in the government’s spending plans for the upcoming financial year