Arthur Hall, Senior Staff Reporter

( L - R ) SHAW, DAVIES

The Government has tacked on $2.4 billion to its budget for the 2007-2008 fiscal year which ends in less than two weeks.

Finance Minister Audley Shaw yesterday presented the second Supplementary Estimates to Parliament showing the changes in the Government's spending programme.

The finance minister also sought and received the approval of the House for $62.5 billion to carry on running the country until the budget for the 2008-2009 fiscal year is approved.

The second Supplementary Estimates reflect a $1.8-billion increase for recurrent expenditure which moves to $254.6 billion while the capital budget inches up to $150.6 billion from $150 billion.

In urging the House to approve the estimates, Shaw argued that this was needed to clean up the financial records going into the new fiscal year.

He noted that the second Supplementary Estimates make provisions for items which are now being addressed.

These include $100 million to the health ministry to carry out a public education drive relating to the provision of free health care which is to begin on April 1 and $30 million for the Ministry of Water and Housing to truck water to communities affected by drought.

There is also a provision of $147 million to the National Solid Waste Management Authority to pay outstanding deductions and $102 million to the Office of the Prime Minister Local Government Division to pay salary arrears and new rates for mayors and councillors.

Motor vehicle loans

Also, $126 million is allocated to the finance ministry to augment its fund to provide motor vehicle loans to public sector workers and $145 million to repair the Jamaica Conference Centre.

The cash-strapped national airline, Air Jamaica, received a further $1.2 billion in grants from the Government.

Commercial bank loans cost the Government $1.5 billion more than initially estimated, while an additional $99 million was shelled out because of higher than anticipated interest rates on local registered stock.

That disclosure caused Opposition Spokesman on Finance, Dr Omar Davies to issue a word of caution to the Bruce Golding administration.

He noted that interest rates were moving in the wrong direction with significant implications for the 2008-2009 budget.

Davies also pointed to the Government's decision to cut capital expenditure on a number of projects financed by international agencies.

These include $300 million which was shaved from the Public Sector Modernisation Programme; $347 million from the Citizen Security and Justice Project and $188 million from the Primary Education Support Project. Additionally, $1.5 billion was cut from the Northern Jamaica Development Project.

But Shaw argued that several issues including the requirements of the international agencies resulted in these projects being behind schedule.

The House passed the estimates with only Opposition MP, Ronald Thwaites, abstaining.

He was adamant from the start that the House was not in a position to discuss the estimates as they were presented to members minutes before they were scheduled to be debated.

But Shaw pointed to the need to quickly pass the estimates before the House is prorogued next week.

He was supported by Davies who said while the Opposition was concerned about the process it was prepared to allow the Government some leeway to ensure that the new budget is passed before the end of April.

The finance minister is expected to table the Estimates of Expenditure for the 2008-2009 fiscal year on March 27.