Chart of the Week – “Bang Belly” Economy – “Bang Belly” Spending

Source: Ministry of Finance

Audley Shaw, opposition spokesman on Finance, did not mince words in characterizing the GoJ’s estimated revenue and expenditure measures to achieve a balanced budget and the targeted primary surplus for 2013-2014 when he chose the adjective “bang belly”.

The minister believes the proposed measures may yield a high surplus and low deficit however no growth for the economy.

Our chart this week is a categorical representation of the total estimated expenditure for 2011/12 -2013/14.

It is interesting to note in the chart above that except for Management of GoJ activities and Pension, the GoJ is estimated to spend less in  2013/14 for all other areas when compared to 2012/13 revised estimates.

If one were to factor in the rate of inflation the reduction in spending would be even more significant.

The only good news is that public debt (interest payments) has shrunk to below 2011/12 levels.

The table below shows which heads belong to the different categories.