Budget to be read in March

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Parent Category: Dec 2011

Category: Week ending Dec 10th, 2011

Published on Monday, 19 December 2011 16:25

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Grenadians will have to wait until March next year to know what fiscal measures will be implemented by the Tillman Thomas Government for the next financial year.

This was confirmed to reporters last week Thursday by Permanent Secretary in the Ministry of Finance, Timothy Antoine who said the budget will be presented in the first half of March 2012. According to Antoine, there is an extensive process in preparing a budget, and it cannot be rushed since there are certain steps that have to be taken.

Critics of the government are saying the delay in the budget is largely due to Grenada experiencing a sluggish economy. However, Antoine indicated that the Public Finance Management Act requires that the Minister of Finance presents the budget within four months of the commencement of the fiscal year.

“This basically means that the minister has until the end of April to present a budget,” he explained. Antoine gave assurances that the late presentation of the budget will not hamper existing projects. He said there will be no impact because the Public Finance Management Act makes provision for the continuation of existing projects before a new budget is approved.

According to him, there will be a provisional general warrant which allows the government to spend money on existing projects until the new budget comes into force. “So any project and programme that start this year can continue in 2012 before the new budget is passed,” he added.

Antoine disclosed that the national budget consultation will take place on December 15 as planned before the ministry staff take a break for the Christmas Holiday. He said that other consultations, including sectoral consultations will be held in January.

Consultations will also be held at the level of ministries and government departments.

Antoine was very cautious in giving details of the 2012 fiscal package stating that it is too early for him to get into that. “I think when we present in two weeks time, at the national budget consultation, you’ll get a feel for what the budget framework is because it was recently approved by Cabinet, and that will tell you basically what the budget envelope looks like, what the priorities will be for 2012, and how we hope to implement the 2012 programme,” he said.

However, when pressed further by a New Today Reporter, Antoine said ministries will want more money as they always do, but the question is what is available? He stressed that given the limited resources, the Ministry of Finance needs to insist on priorities, and make sure the budget focuses on priorities.

A News Release from the Ministry of Finance has identified the priorities for the 2012 Budget as being agribusiness, health, education and wellness services, tourism and hospitality services, energy development, information and communications technology, economic management, public administration and governance, and public infrastructure/construction.

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