00:00Good evening, I am Deesha Rambujan Mali. Welcome to the TV6 News in the headlines.
00:04Improvements to the Children's Life Fund is the first order of business for the Cabinet.
00:09The repeal of the Revenue Authority is a priority on the new government legislative agenda.
00:15Mid-year review to take place soon to transfer funds among ministries.
00:21Topping the news tonight, Prime Minister Kamala Passat-Bissessa says her government has inherited an empty treasury.
00:27But she has given the assurance that they will find the money to meet commitments.
00:33The cash flow statement gives an estimated update of the government's immediate status by month,
00:40which is informed by multiple divisions of the Finance Ministry.
00:44In April 2025, just last month, total cash inflow was estimated at $3.95 billion.
00:52And total cash outflow was estimated at $5.28 billion.
00:59What is it telling us?
01:01The outflow is more than inflow, so we have a deficit.
01:06That was met in April from the central bank's available overdraft cash balance.
01:12By the end of April, the available overdraft cash balance was $3.6 billion,
01:21of which $2.7 billion was carried forward to May 2025.
01:27So, from April, available overdraft, $2.7 billion is carried forward to this month of May.
01:33It should be noted, however, that there was an outstanding balance of unpaid checks in the system,
01:40valued at $500 million, which was also carried forward to May.
01:46Carried forward to May.
01:48Cash inflow to May, from the various revenue sources of the government, estimated $2.38 billion.
01:56However, it is estimated that the cash overflow will be around $6.3 billion,
02:03resulting in a cash deficit position of $3.92 billion this month.
02:10Worse, if all the unpaid checks in the system were presented for payment,
02:16this would add a further $500 million to the deficit for the month of May.
02:21This will then take our total deficit in this month to $4.42 billion for this month.
02:31And therefore, the Ministry of Finance will need to find funding.
02:35So, while we give you the reality of the situation, we will fix it.
02:40$4.42 billion in deficit, the month of May, can be funded as follows.
02:47One, we propose to draw down on the remaining $2.7 billion available in the overdraft facility at the central bank.
02:59Two, we propose to refinance a minimum of 60% of Treasury bills due in May.
03:07This will free up about $647.7 million to address part of the deficit.
03:14While it is estimated that 60% will be used, it is more practical to refinance the entirety of the $1.1 billion in Treasury bills
03:26to leave some within space with a balance in the overdrafts.
03:30So, it's a combination of plans that we have to fill that deficit that we have inherited.
03:36We will also look at the HSF, the available balance in the HSF, to be drawn down for the rest of fiscal year, 25, of $1.76 billion.
03:47We will have to undertake additional borrowing of about $1 billion.
03:54So, I've raised the questions about June's cash flow, the expected deficit for fiscal 25,
04:02and it means at the end of this fiscal year, that deficit is about $11 billion.
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