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  • 8 months ago
Prime Minister Kamla Persad Bissessar says her government has inherited an empty treasury.


But she has given the assurance that they will find the money to meet commitments
Transcript
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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