Prime Minister of Belize John Briceno has presented a BDZ$1.2 billion (One Belize dollar=US$0.49 cents) budget to Parliament, announcing the restoration of the 2020-2021 wage levels to teachers and public officers as well as expecting to “retire BDZ$86. 4 million in public debt, separate and apart from the right off related to the Super Bond discount buyout.
He told legislators on Tuesday that “Recurring revenues are projected at BDZ$1.2 billion, which is 7.5 per cent over, or BDZ$86 million higher than the forecasted outturn for this fiscal year.
“More tax and none tax revenues are projected to rise. Our capital revenues will remain constant and grants will fall to BDZ$35 million in line with our bilateral agreements. Revenue growth is consistent with the 6.5 per cent overall gross domestic product (GDP) growth forecast of the International Monetary Fund (IMF) for 2022 and the Central Banks slightly more modest six per cent forecast.”
Briceno said on the expenditure’s side, overall spending will rise compared to this year’s projected outturn by BDZ$140 million or 12 per cent.
He said these increases include wage and pensions rising by 10 per cent or BDZ$40 million and that most of this attributed to the 10 per cent wage restoration which is to commence on July 1.
He said subsidies and transfers will rise by BDZ$37 million or 25 per cent, which is mostly in direct wage subsidies linked to the wage restoration. Briceno said debt service will rise by BDZ$24 million as we commence interest payments on the Blue Bonds. Capital spending will rise by BDZ# 30 million compared to this year’s outturn of BDZ$243 million.
“In summary therefore, the new budget targets a primary surplus of some BDZ$14 million, or 0.35 per cent of GDP along with an overall deficit of BDZ$98 million or 2.49 per cent of GDP. Government proposes to retire BDZ$97.4 million in public debt during this year’s budget cycle. Total financing required for this budget will be BDZ$195.6 million,” Briceno said.
“Based on revenue and spending performance, government’s total borrowing for this budget is now projected at aBDZ$112.1 million, which is BDZ$211 million less that the BDZ$323.8 million approved by the National Assembly”.
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Briceno said that his administration intends to “resolve once and for all the Super Bond quagmire” adding that since October last year Parliament endorsed the Blue Bond for Conservation initiative.
“Belize has been the toast of the sustainable finance universe, herald for the innovation and boldness of a transaction that achieved three simultaneous objectives. First, reduction of our public indebtedness by over half a billion dollars, second a renewed commitment to marine conservation, including protecting 30 per cent of our ocean space, and third, establishing the marine conservation trust fund, which will value roughly about BDZ$200 million by 2040.”
Briceno said that according to the IMF’s most recent assessment, issued on February 24 this year, Belize’s public debt fell from 133 per cent of GDP at the close of 2020, to 128 per cent at the close of 2021, “down by a massive 25 per cent of GDP”.
Prime Minister Briceno said the budget will touch lives in a positive way, telling legislators that outside of the academic figures, which must be recited for consistency, there are a number of examples where the fiscal package will be beneficial to the population.
“One, it employs 15, 000 public officers and teachers, who collectively provide 35, 1 million work hours for public service during the budget work period. Two, the budget underwrites national sovereignty and citizen security, through the roles of the Belize Defense Force, the Belize Police Department and the Coast Guard. Three, the budget funds the judiciary, thereby providing the mechanisms for law and order of our country.
“Four, the budget pays for 181 government schools, contributes to another 381 grant aided schools, supports some level of direct support scholarship funding for 4,000 students at the tertiary level, and effectively bank rolls the national education system from kinder to UB (University of Belize) for hundred and two thousand six hundred and seventy-one students.
“This budget will provide an additional 200 million for youth and sporting programs. Five, our national referral hospital, regional hospitals and clinical, and the entire public health system is subsidized by this budget. Six, the budget funds the national infrastructure system, maintaining five hundred and twenty-seven miles of paved roads, two thousand two hundred and ninety four miles of gravel surface roads, three hundred bridges, not to mention the entirety of new infrastructure projects.”
But Opposition Leader, Moses “Shyne” Barrow, has said he is not impressed with the fiscal package, telling reporters “I understand for a multi-millionaire like the Prime Minister and many of the wealthy minister that sits on the government’s side, the high cost of living, high cost of fuel, doesn’t impact them one bit and they can boast about growth.
“But, growing from COVID-19 economy doesn’t necessarily say much, because when you are coming from minus hundred, saying that you are one is not much. If you can say in contrast to our best performing economic years, that we are here, then I could consider that. But, people are really suffering.
“People are doing badly and we need to find a way to get the resources that are necessary to deal with the invasion of Ukraine, the illegal invasion by Russians to Ukraine, and bring relief to the Belizean people,” Barrow added.
However, Prime Minister Briceno responded by saying “I always remember what Mr. Price, the Father of the Nation, use to tell me, when your opponent’s start to praise you, sit back and think what stupid thing you have done. So, I do expect the Leader of the Opposition to criticize. Of course, let us leave it at that.
“The point is this, by any metrics Belize has moved forward. We have moved this country considerably, better than anybody expected,” Briceno added.
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