While the draft 2018 budget is on track to be presented to Parliament by the September 1 lawful deadline, it appears there are still issues with this year’s version. The Committee for Financial Supervision CFT says in today’s edition that although a June amendment to the 2017 budget was balanced and should increase the expected surplus, an adjusted overview of income and expenditures is missing.
The changes involve adding NAf. 9.3 million in revenues, bringing the total to NAf. 487.4 million. The additional money comes from collecting a projected NAf. 1.3 million more in profit tax, extra dividends from Government-owned entities and a settlement with utilities company GEBE.
On the other hand, expenses will rise by NAf. 5.1 million to NAf. 463.2 million. All Ministries except those of General Affairs and of Public Health, Social Development and Labour received additional funds to execute policy.
All this leads to the estimated positive result that is to compensate for the 2015 deficit going up from NAf. 20 million to NAf. 24.2 million, at least on paper. The Capital Account was reduced by NAf. 3.6 million to NAf. 71.2 million.
A downward adjustment of investments at several Ministries will create space to use NAf. 34 million for an upgrade of the Tax Office that should help enhance fiscal compliance. The Central Bank will issue a NAf. 21.7 million sinking bond to finance the investments (see Saturday paper).
There is concern about the lack of clarity on including lease payments for the new Administration Building to its owner Social and Health Insurances SZV due from July 1 in this year’s budget for a total of NAf. 2.8 million. Of course, Government should also be renting fewer other accommodations.
These may seem like minor problems, but they nevertheless require the necessary attention to ensure much-needed continuity in the current positive trend regarding the country’s financial household.
