Finance Minister Dr. Peter Phillips is to table a supplementary budget before the end of the calendar year, which will reflect an $8.6-billion cut in the recurrent budget for this fiscal year.
Dr. Phillips says this has become necessary because the Government will pay more than was programmed for the new compensation package for public sector workers.
Dr. Phillips says a projected shortfall in revenues has also contributed to the need to slash the recurrent budget.
The Finance Minister made the disclosure yesterday, shortly after he tabled the fiscal policy paper in the House of Representatives.
The tabling of the document is part of the guidelines agreed to under the extended fund facility arrangement with the IMF.
And the Finance Minister yesterday rejected an assertion from the Opposition Spokesman on Industry, Investment and Commerce, Karl Samuda that the PNP-administration has entered into an arrangement with the IMF, that makes no provision for growing the economy.
Mr. Samuda made his criticism while addressing the House of the Representatives on Tuesday.
Dr. Phillips rejected his argument.
— 30 —