Thursday, December 17, 2020

Gov't Targeting $200m Spending Cuts By June

Minister of State for Finance Kwasi Thompson.

Tribune Business Editor

Some $75.8m in unplanned COVID-19 assistance and previous lockdowns have forced the Government to target $200m in extra spending cuts over the next six months, it was revealed yesterday.

Senator Kwasi Thompson, the newly-appointed minister of state for finance, told the Senate that the Minnis administration is aiming to slash $100m apiece from both its capital and recurrent (fixed cost) spending after 2020-2021 first quarter revenues came in $68m below projections while spending soared.

Explaining that the cuts were essential to keep the Government on track for a record $1.327bn deficit, as forecast in the May Budget, Mr Thompson pledged: "For the remainder of this fiscal year and over the immediate term, the Government will seek to maintain its current budget deficit target of no more than $1.3bn.

"To facilitate this against the expected decline in revenue, and to meet our fiscal targets without having to incur additional debt, the Government has tasked agencies to scale back recurrent expenditure by $100m and capital expenditure by $100m between now and June."  Read more >>