The Ministry of Finance recently issued a circular to the heads of all budget agencies to begin preparations for the 2020 Estimates of Revenues and Expenditures. Budget preparations are both a constitutional and legislative requirement, and there are strict timeframes involved. By Article 218 of the Constitution, the Minister of Finance must present to the National Assembly estimates of revenues and expenditure within 90 days of the commencement of the fiscal year. Additionally, sections 12-13 of the Fiscal Management and Accountability (FMA) Act require the Minister to establish a timetable for the preparation of the annual budget proposal not later than 180 days prior to the commencement of each fiscal year, including the preparation and distribution of a Budget Circular to all budget agencies.
Prior to 2015, the Government had utilized the maximum timeframe allowed for the presentation of the national budget to the Assembly. This had resulted in significant adverse effects, especially in relation to procurement planning, the execution of the Government’s capital programme and the rolling-over of unspent balances at the end of the year in breach of our financial laws. It will be recalled that the 2015 national budget was not presented to the Assembly until some eight months into the fiscal year because of the prorogation and dissolution of Parliament, resulting in a significant slowing down of the economy. Budgets are now approved before the fiscal year begins. There is therefore even greater pressure to begin budget preparations early enough. We raise this matter because some concerns have been expressed as to whether the Ministry of Finance should proceed with budget preparations in the light of the Caribbean Court of Justice (CCJ) ruling on the 21 December 2018 no confidence vote on the Government. We, however, believe that the budget process should proceed as normal and in conformity with the constitutional and legislative requirements, regardless of the current political situation.