House Approves $79B Carrying on Allowance

The House of Representatives has approved Government's withdrawal of $78.9 billion from the Consolidated Fund, to continue the country’s business from April 1 to July 31, by which time it is expected that the 2011/2012 budget would have been approved.

Piloting the resolution on Tuesday March 15, Minister of Finance and the Public Service, Hon Audley Shaw, explained that $69.2 billion would be spent on recurrent or housekeeping expenses and $9.7 billion on capital projects.

“These figures do not include statutory expenditure, such as debt servicing costs and salaries attached to certain posts provided for in the constitution or any other law, as well as the statutory requirement for public officers’ pensions,” he stated.

The $84 billion needed for the statutory provisions do not require the annual parliamentary approval.

Under the Financial Administration and Audit Act (FAA), the Minister can issue warrants for withdrawal of such sums, in anticipation of grants of Parliament in an Appropriations Act for the financial year in which the funds are issued. When the Appropriations Act is passed, the need for warrants cease, as the budget takes effect. The 2011 financial year ends on March 31.

BY: ALPHEA SAUNDERS, JIS Reporter