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Informed sources say the Jamaica Labour Party government has found another $10 billion in expenditure, which was deliberately left off the books in last budget 2007—2008 by the previous People’s National Party (PNP) administration.
This new revelation would bring the unbudgeted expenses found at the Ministry of Finance up to $30.9 billion, up from the $20.9 billion, which was announced in parliament by Finance Minister Audley Shaw in his budget debate presentation on Thursday.
The sources say the increase was not mentioned by Minister Shaw in his budget speech, as the Bruce Golding-led administration is still tracking the paper trail for these hidden expenses.
Information reaching the Sunday Herald suggested that the alleged $10 billion in hidden expenditure spreads across several ministries and departments with the initial paper trail showing most of these government expenses falling under the item, “miscellaneous expenditure.”
According to the sources, “some of these hidden expenditure include arrears in refunds to the private sector for withholding tax on interest.”
Speaking with the Sunday Herald after his post budget debate news conference, Minister Shaw would not go into details on this matter but was more than willing to talk about the $20.9 billion in hidden expenditure, which has already been unearthed and has been brought on this year’s budget.
The largest chunk of the $20.9 billion in unbudgeted expenditure in fiscal year 2007—2008 was for Bank of Jamaica (BOJ) interest payments, which amounted to a $12.79 billion, followed by Air Jamaica debt service payment totaling $3.3 billion.
The remaining portion of $2.7 billion was for the Sugar Company of Jamaica, $1.9 billion in arrears for loan-raising expenses and $214 million for the Jamaica Urban Transit Company subsidy.
Shaw was adamant that these hidden expenses ought to have been brought on to the budget by his predecessor, Dr. Omar Davies, whom he often criticised for concealing expenditure in the budget.
He cited the issue of deferred financing as one example, which has served to obscure the real level of non-debt capital expenditure. Speaking in the budget debate earlier in the week, Minister Shaw announced that he has abandoned deferred financing.
The Sunday Herald tried unsuccessfully to contact Dr. Davies for a response. However, it is understood that a key focus of Dr. Davies budget debate presentation is to respond to the alleged hidden expenditures argument posited by the JLP government.
This new revelation would bring the unbudgeted expenses found at the Ministry of Finance up to $30.9 billion, up from the $20.9 billion, which was announced in parliament by Finance Minister Audley Shaw in his budget debate presentation on Thursday.
The sources say the increase was not mentioned by Minister Shaw in his budget speech, as the Bruce Golding-led administration is still tracking the paper trail for these hidden expenses.
Information reaching the Sunday Herald suggested that the alleged $10 billion in hidden expenditure spreads across several ministries and departments with the initial paper trail showing most of these government expenses falling under the item, “miscellaneous expenditure.”
According to the sources, “some of these hidden expenditure include arrears in refunds to the private sector for withholding tax on interest.”
Speaking with the Sunday Herald after his post budget debate news conference, Minister Shaw would not go into details on this matter but was more than willing to talk about the $20.9 billion in hidden expenditure, which has already been unearthed and has been brought on this year’s budget.
The largest chunk of the $20.9 billion in unbudgeted expenditure in fiscal year 2007—2008 was for Bank of Jamaica (BOJ) interest payments, which amounted to a $12.79 billion, followed by Air Jamaica debt service payment totaling $3.3 billion.
The remaining portion of $2.7 billion was for the Sugar Company of Jamaica, $1.9 billion in arrears for loan-raising expenses and $214 million for the Jamaica Urban Transit Company subsidy.
Shaw was adamant that these hidden expenses ought to have been brought on to the budget by his predecessor, Dr. Omar Davies, whom he often criticised for concealing expenditure in the budget.
He cited the issue of deferred financing as one example, which has served to obscure the real level of non-debt capital expenditure. Speaking in the budget debate earlier in the week, Minister Shaw announced that he has abandoned deferred financing.
The Sunday Herald tried unsuccessfully to contact Dr. Davies for a response. However, it is understood that a key focus of Dr. Davies budget debate presentation is to respond to the alleged hidden expenditures argument posited by the JLP government.
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