Thursday, September 20 2012

PLANNING Minister Dr Bhoe Tewarie said Government is wrestling how to “effectively manage revenue and contain expenditure to contain the deficit to reasonable limits.” Tewarie made this statement on Monday, two weeks before Finance and Economy Minister Larry Howai presents the 2013 Budget in the House of Representatives on October 1

Tewarie said Government plans to focus on “perhaps limiting deficit financing to PSIP (Public Sector Investment Programme) to fund development projects which can create jobs and contribute to growth.”

He explained that this means “by and large keeping the recurrent side in relative balance.” Tewarie also said “additional job creating projects such as construction and infrastructure which can stimulate the economy without the creation of debt are being reviewed.”

“Modest growth seems to have been achieved over the last fiscal year, so we are moving out of decline in which we fell since 2009,” he added.

Howai has previously said this year’s Budget will be approximately $50 billion, a deficit budget and contain a combination of austerity and economic stimulus measures. The House’s Finance Committee, which comprises all 41 Members of Parliament, will meet sometime this week or next week to discuss the details of the Budget before Howai presents it in the House. San Fernando East MP Patrick Manning, who has been granted leave from Parliament from July 15 to October 24 due to ill health, will not be participating in either the committee’s deliberations or the Budget debate in the House.

Sources said Opposition Leader Dr Keith Rowley could give his response to the Budget on October 5. The Budget debate in the House could last one week and the debate in the Senate could be of similar duration. By law, both Houses of Parliament must pass the Budget by October 31.