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by pltm
(PLTM) - The National Democratic Party (NDP) Government is forced to approach the House of Assembly for approval to withdraw over $100M from the Consolidated Fund, to keep Government running as the Appropriation Act (budget) will not come into force before the start of the 2018 financial year.
The Government plans to table a Motion when the House of Assembly meets on Thursday, December 14, to allow Premier and Finance Minister, Hon. Dr. D. Orlando Smith to withdraw the monies.
According to a proposed Motion, the House of Assembly is being asked to authorize the withdrawal of $101,395,000 in respect of the Recurrent Budget of the Territory, for part of fiscal year 2018.
Additionally, the Motion seeks the approval to withdraw an amount of $2.7 million to fund approved capital projects, the cost of which is to be met from local and loan resources. Also, $100,000 to fund approved capital acquisitions.
Further, the continuance of expenditure on approved capital projects financed from external sources and like projects, which may be approved not later than 30th April 2018 was noted.
The Motion is not uncommon in the Virgin Islands where a Government is unable to get a budget approved before the start of the financial year.
Section 105 of the Virgin Islands Constitution Order 2007 gives power to the House of Assembly, by resolution, to empower the Minister of Finance to authorize the withdrawal from the Consolidated Fund of monies necessary to carry out the services of Government after the start of the new financial year and the use of those funds for up to four months or until the coming into operation of the budget.
Residents are anxious to know what the 2018 budget will contain as this will be presented under difficult circumstances, being the first budget since the natural disasters in September, which left the Territory in over $3 billion in losses.
The 2017 budget was $323M, which represented a reduction in revenue forecast compared to 2016, which was the largest in history at $330M.
The recurrent expenditure was in the region of $277M.
