By Gail Alexander

Government has allocated almost $2 billion out of $4 billion in supplementary budget funding to the Finance Ministry to assist T&TEC and BWIA and other areas in that ministry, Junior Finance Minister Conrad Enill explained yesterday.

Enill detailed the areas of expenditure of the $4b in supplementary funding at yesterday’s Lower House session.

The Finance Ministry received the highest level of supplementary funding in the total $2, 262,367,269b.

The supplementary funding was discussed at Wednesday’s finance committee meeting at Parliament.

Enill said clarification was sought with respect to some of the proposed changes.

He added: “In instances where responses were not readily available, written responses have been circulated to all members.”

About $371.6m of the total $4b is earmarked for the Public Sector Investment Programme arising from the mid-year review of the PSIP done recently by the Government.

Enill said the Government would transfer $2.5b of funding into the Revenue Stabilisation Fund—over 91 per cent of surplus oil revenue for fiscal year 2006.

This will bring the balance in the fund at the end of this fiscal year to $7,947.5m.

Among the respective amounts for the ministries, he explained that within the Finance Ministry’s supplementary funding, some $282.4m is being recommended to assist T&TEC in servicing its 2005-2006 debt obligations in relation to two bonds and a loan.

These are a $22m Fincor Bond of 1991 and a $500m RBTT bond of 2001, plus a $431m NGC medium-term loan.

In addition, supplementary funding of $630m is required to meet the equity injection in the recapitalisation of BWIA.

Also $750m is allocated for infrastructure works and $600m for savings.

In the Works Ministry’s funding, $30m will fund the cost of Phase 3 of the proposed Mass Transit system study.

Another $15.9m will expand the National Transportation Study to include the implementation of a rain system.

Some $86.1m will go towards charter hiring of the cargo vessel MV Malta Express for the Tobago ferry service. This is being obtained from International Shipping Partner of Miami.

The sum will also assist in dry-docking costs for the MF Panorama.

An estimated $10.4m will expedite critical drainage works before the rainy season and $39.2m will meet payments for the Diego Martin Highway extension, Churchill Roosevelt improvement works and other roadworks.

Funding in the sum of $292.5m, will help WASA meet its operating deficit and support a Water Sector Improvement Programme. A further $15.7m will support projects under a Development programme.

Enill said the supplementary funding would not impair the Government’s fiscal position.

The last Budget had forecasted a $9.8m surplus. With the supplementary funding as well as estimated increases in Government revenue, there will be a projected improved fiscal surplus of $102m, he said.

Enill said the economy continued to demonstrate growth in real GDP, the energy sector and non-oil sector as well.