Some initial funding from Government’s $100 million budget for the Baby Care Grant as well from Caribbean Airlines Ltd will be transferred to pay increased salaries to public servants, Finance Minister Larry Howai confirmed yesterday.
The grant provides low income earners with $500 to help offset costs of supplies for newborns.
Howai announced the changes during yesterday’s sitting of Parliament’s Standing Finance Committee (SFC) which proposed variation of the 2015 Budget by decreasing and increasing funding to 35 ministries and state agencies.
Funding in four ministries, ranging from $1.4 billion (in the Finance Ministry) to $20 million (Social Development ) is being decreased while funding is being increased in 31 state agencies/ministries.
These include National Security, Tobago House of Assembly, the Elections and Boundaries Commission and the Judiciary. (see box).
Chaguanas West MP Jack Warner was the sole Opposition MP to scrutinise Government’s variation thrust and questioned Government on the decreases and increases since the Opposition People’s National Movement continued its boycott of Parliament.
Howai, replying to Warner’s questions, said funding to the Social Development Ministry was decreased by $68 million from $120 million. Warner asked if the 50 per cent decrease was due to an over-budgeted Baby Grant Programme.
Howai said the original budget for that was done using an estimate based on the total number of newborns.
He said the ministry subsequently determined a more precise number of people to be affected by the programme and based that on a monthly income of $3,500. Those qualifying on that basis would benefit.
Howai said that reduced the number of people using the Baby Grant benefit. Also contributing to reducing the ministry’s funding was implementation of the Smart Card. As result of both matters, Howai said the difference could be transferred to pay public servants.
Social Development Minister Christine Newallo-Hosein said mechanisms were in place — via social workers and a team involving personnel from various ministries — to monitor the Baby Grant Programme.
Howai said Caribbean Airlines had benefitted from the oil fuel price drop and therefore less money was needed for CAL, allowing Government a further $150 million to utilise towards paying public servants.
He said CAL accounts (2013 onwards) would be brought up to date in three months and audits were being outsourced. He said he was pleased with CAL’s progress, given the state of its accounts a few years ago.
Howai said Government was able to balance expenditure so that in the first half of the year, there was a surplus of $47 million from reducing expenditure by $5.8 billion so far. He assured expenditure reduction did not involve halting payments. Howai said Government was on course toward a year-end deficit of 2.12 per cent of GDP, via variation of funding and keeping fiscal accounts in check.
Energy Minister Kevin Ramnarine explained decreases to his ministry resulted from the oil price drop and corresponding fuel subsidy drop in 2015. He said in March the fuel subsidy liability was $912 million, a 45 per cent decrease over last year’s.
After completion of about half of the items, discussions were suspended around 1.49 pm to make way for start of the House of Representatives sitting at 2 pm and the Standing Finance Committee was scheduled to resume discussions last evening on increases for 19 state agencies and ministries including National Security.
DECREASES/INCREASES
FUND DECREASES:
Finance Ministry: $1.4 billion.
Energy/Energy Enterprises: $693.8 million.
Ministry of the People/Social Development: $68 million.
Science/Technology: $20 million.
FUND INCREASES:
Auditor General: $13.4 million.
Judiciary: $73.7 million.
Industrial Court: $1.8 million.
Parliament: $11.2 million.
Service Commissions: $16.3 million.
Statutory Authorities Service Commission: $1.7 million.
Elections and Boundaries Commission: $11 million.
Tax Appeal Board: $450,000.
Registration, Recognition and Certification Board: $1 million.
Public Service Appeal Board: $617,140.
Office of the Prime Minister: $15.2 million.
Tobago House of Assembly: $110 million.