The Prime Minister, Hon. Said Musa, presents his 2007 budget speech today in the House of Representatives. Last Friday, February 23, he gave a preview of what he is going to report when he met with representatives of the various sectors of the community at a session of the National Economic Council.
Today, he will detail the economic highlights of the past year and projections for the new budget year.
In summary, the new budget calls for $676.7 million in revenues and grants. Of that, $593 million is from taxes for the new budget year, as compared to $528 million projected for the financial year ending March 31, 2007. That’s an increase in tax revenues of 12% next year. Last year’s projected increase was around 9%.
Total expenditures for 2007/2008 are estimated at $700 million, compared to $704 million in the current budget year. Legislators had originally approved only $667 million in spending, but the bulk of the overspending seems to have been due to debt servicing.
Also, Government is projecting an overall deficit of less than 1% of GDP. Whether that will be realized remains to be seen, since GOB’s projected deficit of 2.87% of GDP for 2006/2007 is now looking more like 3.21%, according to GOB’s own revised figures.
The budget debate has been set for March 15 and 16. Thereafter, the proposed budget goes to the Senate for approval.
At today’s House meeting, two money motions will be presented under the Finance and Audit (Reform) Act of 2005. The first is to dispose of a soybean processing facility to Nutrisoya for approximately $9 million, and the second is to sell off the remaining assets of the former Libertad Sugar Factory and about 2,000 acres of surrounding lands to Mercosult S.A. for ethanol production – estimated to be a $4.5 million deal, according to Government sources.
Three bills will also go through their second and final readings: (1) the Legal Aid and Advice Bill to provide legal assistance for people in the low and middle income brackets; (2) the Marriage (Amendment) Act to allow for tourists to get licenses to marry in Belize; and (3) the Fire Arms (Amendment) Bill to provide for new categories of shooting range licenses.