$10-billion budget cut
THE Government cut the 2012/13 Budget by just under $10 billion yesterday, as it tabled its first supplementary estimates for the year, in an economic climate dictated by falling tax revenues, a declining dollar and the likelihood of failing to meet its fiscal targets, again.
The cuts were expected to counter a $14 billion loss in tax revenues, which should impact negatively on Government’s attempt to meet a 6.3 per cent, or $88 million, primary surplus this year.
However, the cuts were limited mainly to debt programmes in the Ministry of Finance and Planning, including the withdrawal of $7 billion in statutory allocations to meet projected interest payments on government of Jamaica bonds, which failed to perform up to expectations.
