Parliament approves $1.6 billion Estimates for 2024

The Estimates of Revenue and Expenditure which were approved in Parliament this week, represent an 11.8 per cent increase over the approved Budget for 2023.

The 2024 Estimates, totalling $1.6 billion, including recurrent expenditure of $1.45 billion and capital expenditure of $570,512,611 were laid in Parliament on Tuesday December 19 by Finance Minister Camillo Gonsalves. Financing for the Estimates will come from current revenue of $810,855,820 and capital receipts of $805,640,573.

The 2024 current expenditure, exclusive of amortization and sinking funds amounts to $835.4 million, while current revenue is projected at $810.8 million. There is therefore a current deficit in the Estimates of $24.6 million.

Minister Gonsalves, while addressing the issue of the current deficit, recalled that last year, while the current deficit was projected to be about $10 million, the latest projections for 2023 show a surplus of over $36 million.

The projected current revenue of $810.9 million is 6.9 per cent more than the 2023 figure, Minister Gonsalves said, adding that “This fairly strong projected revenue performance in 2024 is based on increased domestic activity.”

Next year, tax revenue is expected to increase by 6.7 per cent with a $30.7 million increase in taxes on goods and services.

Non tax revenue in the coming year is estimated at $119.3 million, which is 5.4 per cent more than the amount budgeted for 2023.

Gonsalves said this money is expected to come mainly from the sale of goods and services, which is projected to yield $98.8 million in revenue, which is $3 million more than the number budgeted in 2023.

Total recurrent expenditure, inclusive of amortization and sinking fund is $1.045 billion. The minister said compensation of employees will increase by about $15 mill or 4 per cent.

The amount projected for wages and salaries is 4.2 per cent higher than the 2023 number. The minister said this is so because of the salary enhancement package that was negotiated in 2022, a further increase in the personal income tax standard deduction of $3000, and increases in increments and additional allowances for several new positions.

The Finance Minister noted that as September 30, the public debt stood at over 2 billion, which is a 12.8 per cent increase over the previous year.

The total domestic debt amounts to $638.5 million. There were also increases in the external debt, due to the many large projects being undertaken.

January 8 is the date set aside for the presentation of the 2024 National Budget. This will be preceded by the presentation of the Throne Speech by Governor General Dame Susan Dougan.

The 2024 Budget Debate will run from January 9-12.