The government is likely to announce a “planned deficit” when it presents the new Budget in the House of Assembly tomorrow, said local analyst James Smith, former Minister of State for Finance.
Mr Smith said he did not expect any “dramatic changes or announcements”, based on the fact a great deal of the budget is “predetermined.” He said the planned deficit could be as much as 3.5 to four per cent of the county’s gross domestic product (GDP).
Fifty-five per cent to 60 per cent of the government’s budget goes towards salaries, wages and other recurrent expenditures. Unless there is a policy change with respect to public servants, Mr Smith said the allocation can be expected to hold firm.
According to union leaders, there will be good news in the budget for the civil service.
