The House of Representatives on Tuesday (March 20) approved the withdrawal of $88.4 billion from the Consolidated Fund.
The funds are to carry on the business of Government from April 1, 2012 until the budget for the 2012/13 fiscal year is approved.
Leader of Government Business in the Lower House, Hon. Phillip Paulwell, who moved the resolution, noted that this was customary as the Lower House would not have voted on a new estimate for the 2012/13 financial year.
According to the resolution, the carry on budget does not include any increase in public sector salaries or allowances other than what was approved by the Government in 2011/12 to be paid in the 2012/13 financial year.
It also does not cover any new service or work for which no provision was made in the 2011/12 Estimates of Expenditure.
No payments can be made by virtue of the resolution after July 31, 2012.
Under the Financial Administration and Audit Act (FAA), the Finance 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 2012 financial year ends on March 31.
By Latonya Linton, JIS Reporter