Several questions are now being asked about how the Government will finance the $561-billion revised Budget tabled in Parliament yesterday.

Finance Minister Audley Shaw had previously announced an $18-billion tax package to finance the initial $555-billion Budget with plans to borrow $215.8 billion and a fiscal deficit of 5.5 per cent.

But Shaw's revenue projections are way off target since the start of the year with $86.2 billion collected in the first four months instead of the projected $95.9 billion.

This has left the Government with a $9.7-billion shortfall and a fiscal deficit of $52.6 billion instead of the projected $49.5 billion.

Shed light on funding

Against this background, Shaw is expected to tell the country next week how the Government will first come up with the $6 billion that it has added to its spending plans, while finding the money it will need for the revenue shortfall.

"If the Government is not projecting a wider fiscal deficit, then there will have to be some revenue enhancing measures or increased borrowing," Ralston Hyman, financial analyst, told The Gleaner yesterday.

"Since the revised Budget is bigger than initially announced, it must mean that the Government is identifying new sources of revenue or additional borrowing if it is going to meet the fiscal target," Hyman added, as he expressed surprise at the increased spending plan.

He was supported by financial analyst and Gleaner business columnist Anne Shirley who noted that even if the Government gets the US$1.2 billion standby arrangement from the International Monetary Fund, this would not impact on its efforts to finance the Budget.

"While the $6 billion is not a big increase in terms of the per cent of the Budget, it should be a worry for the Government which was already struggling to finance the initial $555-billion Budget," Shirley said.