Gov’t stops buying stuff

| 10/11/2010

(CNS): Details financial figures from the Treasury department have revealed that the government has managed to reduce its deficit with a combination of a $10.5million increase in some revenue generating measures, $5million less on extra ordinary expenses and a reduction of outputs and transfer payments to NGOs of over $6million. But its biggest overall cut was in the stuff it bought as government cut its supplies and consumables budget by almost $11.5million. According to the preliminary unaudited results for 2009/10 government spent over three quarters of a million more on personnel than anticipated in the revised budget but did far better in controlling spending on stuff.

The figures which reflect the government’s financial performance at the end of June were presented to the Legislative Assembly on Monday by the premier who said he was responding to requests for more information on how government had managed to reduce its anticipated revised deficit forecast of around $45million to an estimated $15milllion. Although the revenue increases from fees has boosted government coffers the largest part of the deficit reduction has come from spending cuts in services and goods and not personnel costs.

Facing his critics and the scepticism that has been raised about the latest set of financial figures, McKeeva Bush said the statistics demonstrated that his "pronouncements were supportable," although he pointed out that the financials have yet to be audited.

The news that the bulk of the deficit cut has come from a cut in the purchase of goods and consumables has still met with some concerns. The member from North Side, Ezzard Miller has said the $11.5million saved by simply not buying things is likely to be pushed into this budget year as government departments are forced to purchase the things they need to do their work that they did not buy in the last financial year.

The figures do reveal, however, some improvements in the anticipated revenue that government had expected to earn in the revised budget. Collection on duties was over half a million more than anticipated in the revised 2009/10 forecast though some $30million less that was first projected when Bush brought the original budget to the parliament in October 2009.

Despite a fall in work permit holders the government collected over $4million more than it had expected in the revised forecast earlier this year as a result of the increase in fees and the government’s single biggest improvement on anticipated revenue.

The figures also revealed that government is currently overdrawn by some $4million in its current account but has some $5million in its fixed deposit account. The public purse also has over $88 million in restricted funds.

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  1. Anonymous says:

     The headline should read, "Government stop paying for stuff".

  2. Anonymous says:

     @ G.Real  You are exactly right.  People with small businesses have lost a lot of money waiting on their checks from government.  Anywhere else that would be intent to defraud a business of their money.

    The same money that they spent on their trips overseas could have been used to pay these businesses.

  3. Sergeant says:

    Well done UDP!  Well done Premier!  Let us show them critics that we are fulfilling our promises to the Public!


    • Anonymous says:

      Yes,  show us with available to the puplic audits.   Please try even harder to make them on time and up to date and they might be more belivable.  Was that not a promise to the public?

  4. Scrooge McDuck says:

    Like governments everywhere, what is really required is a Consolidated Financial Report. This will truly show the state of government finances as it also indicates long term investment.  However Yearly Budgets, based on the current fiscal year do not divulge this information.  All governments, even on a Municipal level have invested in bonds, etc. and derive income from them. Consolidated Financial Reports are designed to reveal those investments and to give a more accurate accounting. In other words without that, we only get part of the picture.

  5. My2cents says:

    What a wonderful word "stuff". Must be an accounting term? CNS please do not let your standards slip.

    • Stuff-on-amuse says:

      C’mon My2cents – don’t be so stuffy!!

      I think it’s the perfect word. There is no better way to describe the incredible amount of "stuff" that was purchased and paid for by Government in the past. Amazing how expenditures decrease when departments find out their purchases are being monitored. It looks like the fear of being publicly shamed has succeeded in discouraging a great number of dishonest transactions. Hopefully some of this success can be contributed to a new age of  increased honor and honesty…….

      So stuff it! Leave CNS alone!!!  🙂

  6. Anonymous says:

    "Collection on duties was over half a million more than anticipated in the revised 2009/10 forecast though some $30MILLION LESS that was first projected when Bush brought the original budget to the parliament in October 2009".

    $30m less??!! How is that possible?  If the FS was responsible for these grossly inaccurate projections then it explains why the figures the PPM presented to the LA in early 2009 as to the budget deficit were so wildly off. We had been led to believe by the UDP and the FS that he had been pressured by the PPM into falsifying the figures. Well, the PPM were not in govt. by October, 2009, so who can we blame this time? I get the distinct impression that someone is fiddling with the figures. Perhaps the deficit was never $81m.

  7. G. Real says:

    I think you will find that they didn’t stop buying stuff, they just stopped paying for it.