Assembly approves extra government spending |23 April 2009

Minister for Finance Danny Faure presented the Bill yesterday, following the assembly’s support for a motion tabled by leader of government business Marie-Louise Potter at the beginning of April.

Mr Faure thanked the assembly for approving the extra money, which he said is necessary for government to continue funding its services and programmes.

He said his ministry has taken note of several recommendations the assembly made concerning the request for spending in excess of the approved budget for this year.

This included the question of the contingency funds, which the assembly voted for last December. He said the assembly knew then that the money was to be used only to help bail out financial institutions, as has been the case with the Housing Finance Company (HFC).

Referring to the country’s revenue for the first three months of the year, Mr Faure said we are on target despite the government removing goods and services tax from some items, which has resulted in a loss of revenue. On the other hand, GST has now been imposed on casinos.

On the question of expenditure, Mr Faure said all government departments are exercising financial discipline, and some of them are receiving help from the Ministry of Finance.

As there was no debate on the Bill, it was approved by the majority party with the opposition abstaining.