Finance and the Public Service Minister, Hon. Audley Shaw, says the Government intends to finance the $715.6-billion Budget through a mix of revenue measures, grants, loan resources and inflows from the PetroCaribe Development Fund.
“Assuming current policies, revenues and grant inflows are estimated at $526.3 billion and consist of tax revenues of $478.9 billion, non- tax revenue of $40 billion, bauxite levy of $0.13 billion, capital revenue of $2.2 billion and grants of $4.4 billion,” he noted.
The Finance Minister was opening the 2017/18 Budget Debate in the House of Representatives on Thursday (March 9).
He said that loan inflows, which are expected from domestic and external sources, are programmed at $159.6 billion, with $89 billion to be raised in the domestic market and $70.6 billion to come from external sources.
Mr. Shaw informed that the PetroCaribe Fund is programmed to repay $11.7 billion to the Central Government during the year.
In addition, the National Housing Trust (NHT) is to continue to transfer $11.4 billion to support the primary balance target.
As it relates to the bauxite levy, the Finance Minister explained that the revenue estimates were amended to reflect $131 million from expected levy arrears and $407 million to reflect the expected minimum inflows from the New Day/DADA Company, which purchased the Noranda operations in St. Ann.
The $407 million is included in non-tax revenues, he pointed out.
The Fiscal Policy Paper for 2017/18 had indicated that no inflows were expected from the bauxite levy.
Minister Shaw said the changes followed additional consultation with the Ministry of Transport and Mining and the Jamaica Bauxite Institute.