24 Cents Of Every Tax Dollar Goes To Paying National Debt

 Barbados will spend Bds$2.25 million per day paying down the national debt, up   from Bds$2.1m for the fiscal year now ending, and $2m two years ago, according to the government’s estimates of expenditure. This year, Barbados is budgeting to pay $822m to service debt. Last year the country paid $771m and the year before, just under $750m.

That Bds$822m comes out of a total estimated expenditure of Bds$3.44 Billion, which works out to 24% of total spending in the coming fiscal year, which starts April 1.

Therefore, 24 cents out of every dollar the government collects goes to service the growing national debt. About half of the money paid out, or $418m, goes to reducing or amortising the debt itself, while the remaining $404m will go to paying interest expenses.

Another of the Barbados government’s major overall expenses is wages and salary payments, with statutory personal emoluments estimated for the coming fiscal year at $607m and another $166m in non-statutory salaries. Together, emoluments come to over three-quarters of a billion dollars, and when the government’s employers’ contributions to NIS of $60m plus retiring benefits of $178m are added, the government’s total wage bill is estimated for the coming year at $1,011m.
Government grants to public institutions will be $618m in the coming year, while another $444m will be spent on goods and services.

If we look at the allocations by ministry, the ministries in charge of the nation’s education and health, as is the norm, have the biggest budgets. The Ministry of Education & Human Resources Development, whose minister is Ronald Jones,  has been allocated $479m, while the Ministry of Health, National Insurance and Social Security, under Dr. David Estwick, will get $468m. Those ministries are followed by the Ministry of Finance, Economic Affairs and Development, Civil Service and Energy, headed by Prime Minister David Thompson, which has been given a budget of $303m.

Other ministerial budgets of note include the Ministry of Tourism, led by Richard Sealy, with $116m; the Ministry of Family, Youth, Sports &  Environment, under Dr. Esther Byer-Suckoo, with $123m, and the Ministry of Social Care, Constitutional Empowerment and Urban Development, under Dr. Denis Lowe, with $77.5 million, which is the same funding allocated to the Ministry of Foreign Affairs, Foreign Trade and International Business under Christopher Sinckler.

{Taken from the Broad Street Journal website}.

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