THE Government is likely to table its first supplementary estimates for the current financial year, 2012/13, when the House of Representatives sits at Gordon House tomorrow.

The Jamaica Observer has been reliably informed that the estimates are to include measures to deal with the $10-billion gap in the Government's revenues, which is unlikely to be filled by the end of the 2012/13 financial year and which threatens targets, including the fiscal deficit and the primary surplus.

Increased spending to cover damage created by Hurricane Sandy late last year, as well as the determination of public sector trade unions not to settle for a wage freeze over the next two years, have also added to the expenditure problems.

Fears of increased taxation can be dispelled, at least for the time being, as the supplementary estimates deal only with expenditures, and would only reflect measures to cut spending or transfer funds across ministries and departments to deal with priorities, in an attempt to keep on track to meet fiscal targets.

However, this does not mean that a tax package could not be tabled when Finance Minister Dr Peter Phillips closes the debate on the estimates, which would follow the tabling of the supplementary estimates.

Financial sources say that the supplementary estimates were expected, as the Government needs to realign the 2012/13 budget in order to reduce the deficit and to meet its fiscal targets.

The last supplementary estimates tabled in March 2012, reflected drastic cuts in the budget, including in areas of health and education, to meet a similar $10-billion gap in the tax revenues.