House Approves Withdrawal of $1.3 Billion From CDF for Budgetary Support


The House of Representatives on Tuesday (Sept. 28) approved a Resolution for the withdrawal of some $ 1.3 billion from the Capital Development Fund (CDF) to be paid into the consolidated fund for the purpose of budgetary support for the 2004/05 financial year. The provision was made under the Bauxite (Production Levy) Act.
Tabling the resolution, State Minister in the Ministry of Finance and Planning, Fitz Jackson reminded the House that in the 2004/05 Estimates of Expenditure, there was a provision for some $2.3 billion to be transferred from the CDF to the consolidated fund.
He said that the requested $1.3 billion was based on the current balance available in the CDF, which as at September 21, 2004 was just over $1.4 billion. This withdrawal represents the third deduction from the CDF for the 2004 calendar year. Mr. Jackson informed that the previous withdrawals, which amount to $928 million, were for investment purposes and to provide budgetary support.
Meanwhile, expressing concern over the withdrawal, Opposition Spokesman on Finance, Audley Shaw submitted that given the fact that only an estimated 40 years of bauxite reserves remained in the country, there was an urgent need to deliberately channel more of the funds earned from the sector into specific areas of capital development.

JIS Social