Good news for policyholders and investors in CLICO International Life and British American Life Insurance Company (Barbados) Limited.
Government has made provision in this year’s Estimates of Expenditure and Revenue, which were laid in Parliament today by Minister of Finance Chris Sinckler, for $25 million in payments for CLICO and a further $4.96 million for BAICO.
However, it was not immediately clear how the monies would be allocated even though Sinckler had earlier promised to bring the matter to a final conclusion for those who were left in the lurch following the collapse of CLICO and BAICO’s Trinidad-based parent company – CL Financial – back in 2009.
Overall Government is projected to spend $4.5 billion for the financial year 2017-2018,up from $4.3 billion last year with expenditure on goods and services set to increase by $10.1 million to $421.4 million, while current transfers are projected to decrease by $29.3 million or 2.5% to $1.1 billion.
Interestingly no provision has been made for any increase in salaries, even though public sector unions have been clamouring for such a hike.
A large chunk of expenditure this year — $1.8 billion — will go towards repayment of principal and interest on Government’s debt accounts .
In terms of revenue, the Freundel Stuart administration is projecting $2.9 billion in earnings for the coming financial year, leaving it with a deficit of $422 million or 4.4% of GDP on the books, according to the figures presented.
Apart from CLICO and BAICO, this year’s Estimates make provision for a large subvention of $146.3 million to the Queen Elizabeth Hospital;
A major allocation has also been made to the Barbados Tourism Marketing Inc. in the amount of $87.7 million and a further $8.6 million to the Barbados Tourism Product Authority. This has nothing to do with the $45.9 million, which has been provided for the redevelopment of Sam Lord’s Castle.
The Estimates also make provision for $15 million for road rehabilitation and the same amount for externally funded Barbados Water Authority projects.
In the meantime, grant funding in the amount of $15 million is expected to be received as budgetary support and will also assist Government in carrying out renewable energy programmes, refurbishment of the Gymnasium and Higher Education Development projects.
A current subvention of $26.6 million and a capital subvention of $2.4 million have been provided to the Sanitation Service Authority; and $13.5 million for the Public Sector Smart Energy Programme;
The sum of $12 million has been provided to the Barbados Drug Service for the purchase of drugs.
In terms of education, $71.3 million has been allocated to the University of the West Indies while the Ministry of Education’s Skills for the Future programme has been allocated $11 million.
The Welfare Department is also to receive a subvention of $19.0 million in this year’s Estimates.