Budget to be financed through Mix of Revenue, Grants and Loans

The 2016/17 budget of $579.9 billion is to be financed through a mix of revenue, grants, loans and inflows from the PetroCaribe Development Fund.

This was revealed by Minister of Finance and Public Service, Hon. Audley Shaw, when he opened the Budget Debate in the House, yesterday (May 12), under the theme: ‘Partnership for Economic Growth’.

Revenue and grant inflows for the year are estimated at $486.6 billion and consist of tax revenue of $447.4 billion, non-tax revenue of $30.5 billion, bauxite levy of $2.8 billion, capital revenue of $0.7 billion and grants of $5.2 billion.

Loan inflows expected from both domestic and external sources are programmed at $89.4 billion,  $41.9 billion of which is to be raised in the domestic market and $47.5 billion from external sources.

The Minister said the Government plans to issue Treasury Bills valued at $14 billion and other market instruments valued at $27.9 billion in the domestic market.

Mr. Shaw said externally, flows are expected from the multilateral institutions in the form of investment loans. Budget support loans and investment loan flows are also anticipated from the People’s Republic of China.

Total investment loans are programmed at $17.6 billion, while budget support loans of $29.9 billion are expected.

He noted that the PetroCaribe Development Fund will also contribute to financing the 2016/17 fiscal year budget, as it is to pay over $14.5 billion to the Central Government.

The Minister pointed out that the total inflows add up to $590.6 billion, representing an additional $10.6 billion required to fund debt due early in the 2017/18 fiscal year.