Monday, October 10 2011 @ 08:50 PM AST
Contributed by: bngs
Mr. Speaker, I wish to make a short statement on the state of our finances and the arithmetic of our
Mr. Speaker, our national economy is still at risk and remains vulnerable to external shocks.
Notwithstanding, our economy remains resilient and our financial system is strong. We must stay on
course in this time of uncertainty.
Mr. Speaker, our fiscal 2012 budget calculation was based on an oil price of US $75per barrel and a gas
price of US $2.75 per mmbtu. We have estimated a real GDP growth of 1.7 percent and an average
inflation rate of 7 percent.
The total revenue is projected at $47 billion comprising $18.1 billion from the energy sector and $28.9
billion from the non energy sector. Total expenditure is projected at $54.6 billion resulting in a fiscal
deficit of $7.6 billion or 4.89 percent of our GDP. The debt to GDP ratio remains sustainable and well
within international benchmarks.
Of total expenditure:
• Education and Training will receive $8,717.8 million
• Infrastructure: including Works, Public Utilities and Transport will receive $6,995.4 million
• Health: $4,724.9 million
• National Security: $5,170.5 million
• Agriculture: $1,954.3 million and
• Housing: $1,970.0 million
The unemployment rate as estimated by the Central Statistical Office as of December 2010, stood at 6.3
percent. We anticipate that there has been an upward movement in this figure since then, but it remains
lower than our foreign trading partners. The thrust of our investment programme and our policy
initiatives outlined in this budget statement are designed to reverse this trend.
To summarize Mr. Speaker:
• Total Revenue is estimated to be $47.0 billion
• Total Expenditure net of Capital Repayments and Sinking Fund Contribution is estimated to
be $54.6 billion
• For an overall fiscal deficit of $7.6 billion
With regard to the financing of the deficit, we estimate that 52.7 percent of the financing requirement will
be met from domestic sources, while the remainder will be sourced from external sources including
multilateral financial institutions.
Mr. Speaker, our Government and leadership shall remain firm in our resolve to transform the economy,
and in concert with the people of our nation, we have the confidence to create more jobs, achieve a safer
environment and increase our investment for the development and benefit of all our citizens.