THE Government yesterday tabled a $380-billion budget for 2007/2008, an increase of just $8 billion over last year’s total expenditure.

The figure included $239.3 billion for recurrent (housekeeping) spending and $141 billion for capital spending, comprised of $124.9 billion for Capital “A” projects, which are government-financed capital, or one-off projects, and $16.1 billion on Capital “B” or multilaterally and bilaterally funded projects. This made up a total of $380.3 billion in projected spending in the new financial year.

Last night, the Opposition, reacting to the figures, said with at least 54 per cent of the projected figure to be spent on debt servicing, Finance Minister Omar Davies would be seeking more expenditure under supplementary estimates.

Opposition spokesman on Finance and the Public Service Audley Shaw promised to “pierce the veil of secrecy and deception”, which he says characterises Davies’ budgets, and offer “a clear alternative” when he speaks in the debate on Tuesday, April 17.

Dr Davies is scheduled to open the debate on Thursday, April 12, after next week’s review of the figures by the Standing Finance Committee of the House of Representatives.

A significant feature of the budget is the reduction in the capital estimates from last year’s $147.5 billion to $141 billion this year.

One explanation is the reduced demand for funding of pre-Cricket World Cup (CWC) 2007 spending. This was reflected in huge cuts in the capital budgets of several ministries, including the Office of the Prime Minister, the Ministry of Tourism, Entertainment and Culture, the Ministry of National Security and the Ministry of Health.

However, two ministries which had their budgets cut in the supplementary estimates earlier this month – education and youth and housing, transport, water and works – had massive increases in capital allocations in the new estimates albeit for restoration of previous programmes.

In the Ministry of Housing, Transport, Water and Works, there is an additional allocation of $4.3 billion to repay the budget for monies from the PetroCaribe Fund and the Venezuela Investment Fund, which have already been used to repair roads, clean drains and for disaster mitigation.

The ministry will also get $1.6 billion to facilitate emergency works resulting from flooding, including road repairs, to be effected through the National Works Agency (NWA), and $111 million for cleaning gullies ahead of anticipated flood rains.

In this ministry, an additional $1.5 billion will also be spent on main roads and highways linking the 14 parishes, and there is an allocation of $1.8 billion to cover outstanding deferred financing payments.

The Ministry of Education’s capital budget has been increased from $2.8 to $4.4 billion, primarily to restore the education transformation programme, which suffered severe cuts in the recent supplementary estimates.

In the Ministry of Finance and Planning, there were huge cuts in capital provisions by law for public debt management, comprising external and internal debt.

However, an additional $250 million has been provided for loans to public servants for tertiary education under the public sector memorandum of understanding, while Air Jamaica has received an additional $110 million over its 2006/2007 allocation.

In the Ministry of Tourism, Entertainment and Culture, tourism product development and services’ figures were cut from $98 million to $69 million, mainly affecting beautification projects, maintenance of properties and sustainable environmental and tourism projects in major resort towns.

Cuts in the resources allocated to the Jamaica Constabulary Force affected the Professional Standards Branch, which handles internal affairs matters, such as corruption, and the Bureau of Special Investigations (BSI), which investigates complaints against the police.

The PSB’s total budget was cut from $264.3 million in 2006/2007 to $100.5 million in 2007/2008. The forensic laboratory, which should play a major role in proposed DNA testing, had it’s budget cut from $103 million to $91.8 million. The legal medicine division, which includes pathological and histological examination and investigation systems, also had a slight $2 million cut.