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Showing posts with label Budget 2020-21. Show all posts
Showing posts with label Budget 2020-21. Show all posts

Thursday, 1 October 2020

THIS FINANCE MINISTER DOES NOT UNDERSTAND "CAN'T AFFORD" EITHER

Another big deficit Budget and a Total Public Debt of $29 billion means simply that a grim reality show, "Death By A Thousand Cuts", has been given a new chapter; this one is written by Finance Minister, Siobhan Coady. Like her predecessors, she does not understand the concept of "can't afford". We are, therefore, brought a step closer to the opening act of a "Play" that will open soon in every neighborhood in this province.

The essence of the annual Budget ritual is captured in Statement I of the 2020-21 Estimates. The Government is spending $7.65 billion against only $5.43 billion revenue.

The math confirms a cash deficit of $2.2 billion (which includes $332 million of capital works).

Forecast revenue is down by approximately $0.5 billion, reflecting 44.6% lower oil royalties than received last year, exposing a severely impacted domestic oil industry.