In the absence of a 2020 budget being passed, government will be unable to take on new projects but will be able to use 1/12 of this year’s provisions to keep the country running after the budget cycle ends at the end of this year, Minister of Finance Winston Jordan has said.
With government now having an interim status due to the passage of a no-confidence motion against it and the need for elections, Jordan was asked last Wednesday what happens if the current budget cycle ends and a new budget is not approved by the National Assembly.
Jordan said this year’s budget cycle ends on December 31st and until the next budget is passed, the government’s ability to spend would be restricted. However, he pointed out that there are provisions for the government to use 1/12 of the previous year’s provision on areas such as wages and salaries. On the capital side, they will be unable to take on new projects. “I don’t have to put provisions [in place], the rule is already there. So, come January, people will be paid their salaries and so on but you will not be able to do a lot because it is just routine things with the 1/12,” Jordan explained.
