Gov’t projects 200% increase in capital spending

The government has projected a significant increase in its capital expenditure programme (CAPEX) for the year 2024, amounting to roughly $70.90 million.

This total marks a substantial rise in government spending over the coming year that will be dedicated to enhancing the territory’s infrastructure and public services.

Capital expenditure refers to funds used by the government to acquire, upgrade and maintain physical assets and can include buildings, technology, machinery or infrastructure.

Budget estimates indicate that out of the total CAPEX, $45.45 million (64.1%) is allocated to development projects, while the remaining $25.45 million (35.9%) is earmarked for capital acquisitions.

This allocation represents a 46.1% increase from the revised 2023 estimates and a whopping 222.3% increase over the projected capital spending for 2023.

The government’s decision to ramp up its spending comes in the wake of a challenging year. In 2023, capital spending was projected to reach just $22.00 million, a mere 45.4% of the revised budget. It was noted that this shortfall was primarily due to project implementation delays and the time taken for ministries to adapt to the new Public Procurement Act.

The estimates further indicated that for 2024, the government’s CAPEX is distributed across various sectors, with substantial allocations to Social and Welfare ($21.1 million), Transportation ($13.1 million), and Good Governance ($15.7 million). Other sectors, including Health, Education, and Climate Resilience, also receive significant funding, reflecting the government’s commitment to holistic development.

Much of the funding for these projects is set to come from a combination of sources, including 50% from a new loan facility, the Development Fund, and various other governmental funds.

The 2024 budget, which focuses on enhancing government operations and fostering economic diversity, aims at building sustainable and resilient communities. It also prioritises environmentally friendly and resilient infrastructure.

The 2024 CAPEX was developed following the goals and outcomes of the 2023 National Sustainable Development Plan (NSDP). The government noted that successful delivery of the CAPEX will not only require the commitment of the central government, but also other public and private institutions, and each person residing in the territory.