By Clint Chan Tack Monday, September 7 2009

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Final briefing: Prime Minister Patrick Manning may have received a pre-budget briefing from Finance Minister Karen Nunez-Tesheira in Parliament last F...

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FINANCE MINISTER Karen Nunez-Tesheira will present the 2010 Budget in the House of Representatives today at 1.30 pm and the country will find out exactly how by much Government will “loosen its belt” in the face of tough economic times.

Questioned by reporters following the adjournment of last Friday’s sitting of the House, Nunez-Tesheira maintained the budget will be conservative compared to previous budgets which amounted to an estimated $50 billion. Sources said this year’s budget may range between $42 and $45 billion. With oil prices fluctuating between US$50 and US$70 per barrel, Government may peg the budget against a US$45 per barrel price.

Last week’s Ryder Scott gas audit which showed a decline in proven natural gas reserves in 2008 could see the budget’s gas price being pegged at either US$3.25 per mmbtu or US$3.50 mmbtu.

“It is about looking at the fact that we are in a deficit position and therefore the Government is going to do all the things to ensure the economy does not further contract. It is not about being lavish,” the minister said. She remained confident the population will be happy with what they hear today.

Nunez-Tesheira reiterated that all of the country’s macro-economic indicators show the Government has managed the economy prudently, especially during the world economic crisis.

“We hope that the people will have the same confidence in us that we have shown them and demonstrated very credibly.”

In an interview with Newsday last month, Nunez-Tesheira said infrastructure will take on a greater priority than in previous budgets.

“You will need to do things that will obviously boost the economy in areas which can encourage employment and certainly some of the areas which you want to see that, perhaps, is in the construction industry because of its multiplier effect. It’s a big winner.”

Education, health, national security, housing, social development and agriculture are also expected to receive substantial allocations in this year’s budget. Education Minister Esther Le Gendre and Housing Minister Dr Emily Gaynor Dick-Forde have both indicated that new schools and houses will be built in the new fiscal year.

Citizens will also be hoping that Nunez-Tesheira will announce some new security initiatives in the budget that will help to bring crime under control.

There may be updates on the acquisition of assets such as offshore patrol vessels and armed helicopters. Government last month announced a billion dollar deal with Augusta Westland to provide four helicopters for the Air Guard.

Trade Minister Mariano Browne and Energy Minister Conrad Enill said mega projects such as the construction of the Alutrint aluminium complex will continue but these projects will be prioritised. Nunez-Tesheira did not rule out the possibility of fiscal incentives for different sectors of the economy but said this alone may not be all that is required in the current circumstances.

Social Development Minister Dr Amery Browne said genuine holders of the Smart Card could expect to benefit from an increase in the level of cash transfer in the new fiscal year due to a review of the allocation of cards. Sources have said there could be increases to the disability grant and other grants in the budget.

With inflation for July at 5.9 percent, measures to keep inflation in check and boost domestic agriculture are also expected to be prominent in the budget.

There may not be any surplus to place in the Heritage and Stabilisation Fund due to the crisis but Nunez-Tesheira has repeatedly said Government does not intend to draw down on the $18 billion in the Heritage and Stabilisation Fund.