The new fiscal year began Sunday, but with no new budget, legislators at the final House of Assembly meeting of 2011 authorised government to spend up to $102,955,067 on recurrent and capital items in the next four months.
The bulk of that money – $95.9 million – is for recurrent spending, sometimes called the government’s operating budget, for items such as salaries, regular maintenance and day-to-day bills. Just over $7 million was designated for locally funded capital projects that aren’t being built with external financing.
Legislators also approved a nearly $20 million supplementary spending measure for the 2011 fiscal year. Closed-door debate for that measure took most of the day on Dec. 19, when the House began its sitting. During the public debate on Dec. 21, which lasted more than two hours, most legislators spoke in support of the bill, but also called for spending to be brought under control.
Current spending levels are “unsustainable,” said Communications and Works Minister Mark Vanterpool. Mr. Vanterpool also said he understands that recurrent expenditure is projected to be about $260 million for 2012, up from about $200 million eight years ago.
“That type of inflationary expenditure cannot be sustained,” he said.
See the Jan. 6, 2012 edition for full coverage.