THE Barbados Government will be looking to tap both foreign and domestic sources for well over $700 million in financing during the next financial year starting April 1, 2021.
These projections are contained in the Estimates of Revenue and Expenditure for 2021/2022 introduced earlier this week in Parliament. At the same time the Estimates are projecting Current revenue at $2.89 billion, total expenditure of $3.39 billion and a gap of $500.4 million to be filled during the coming year.
The Estimates outline revenue raising measures and the spending the Government intends undertaking over the next 12 months.
According to the information, foreign financing is expected to be in the region of $447.6 million and domestic component $334.3 million. The Government prepared document revealed that the Inter-American Development Bank will be approached to underwrite approximately $150.3 million of the foreign financing, following by the Peoples Republic of China and the Latin American Development Bank.
An amount of $250 million in non project funding is included in the projections for the coming year.
As for domestic financials, an amount of $41.8 million is earmarked to come through Debentures and a further $292 million from other sources which were not named.
In addressing the allocations for the next financial year, current revenue is forecast at $2.89 billion. However, Government said that on the cash basis it is projected that current revenue will be $2.55 billion, some 6.2 per cent above the revised estimates of $2.41 billion amount for the current financial year which ends on March 31.
As regards to total expenditure the amount given for next financial year is $3.39 billion, an increase of 0.6 per cent.
In addition, $1.48 billion is being projected for operating expenses, along with statutory expenses of $900 million, the $818 million will go towards debt service and $193 million in respect of capital expenditure.
Addressing the issue of Government operations and financing, it was revealed in the Estimates that on the accrual basis, the net operating balance is $85. 6 million or 0.9 per cent of GDP. The overall fiscal deficit on the Accountant general basis with financing, is projected at $282.0 million of 8.1 per cent of nominal GDP and market prices estimated at $9 604.4 million.
When converted to International Financial Institutions basis the fiscal deficit is projected $383.3 million or four per cent of GDP.
The Estimates also highlight the shortfall in revenue up to January this year as well as the higher spending undertaken in light of COVID 19, along with the level of deficit the country is likely to incur next financial year.
It has been revealed that current revenue collected to January this year was down 13.5 per cent from the amount collected in the corresponding period to January 2020. However, current expenditure at January 2021 was up 13.1 per cent when compared to January 2020.
Capital expenditure also at January 2021 was up 24 per cent over the same month in 2020.