Is The Treasury Low Or Out Of Cash & Has The Gov’t Exhausted Its Treasury Overdraft?

OURMONEYFrom early last year I pointed out that if you see the government is not making its standard payments of salaries, utilities and operational expenses which are fixed costs allocated in the Budget each year, you must ask the question of whether the Treasury is low or out of cash. If the Treasury is out of cash, that would be why the Treasurer and Public Service is unable to make these payments – payments public officers, utility companies, local creditors and service providers throughout this country know have been delinquent and/or late over the course of well over a year. This is how the process works: the government does not have to grant permission for fixed salaries and bills to be paid. Once the amount is due, the check is cut and the monies are paid – UNLESS THERE IS NO CASH AVAILABLE TO PAY OUT.

The media doesn’t need to sit and wait for a “leak” to have probed this matter, as it is not a secret that the government has not been meeting its fixed financial obligations. Same goes for the Opposition, which Chairs Parliament’s Public Accounts Committee. If the government is not paying its salaries and bills, the government does not have any more cash available to do so, and what cash they do get in hand is being spent on everything (like travel & corruption) other than their fixed financial obligations to the public service, public officers, service providers and local creditors. IS THE TREASURY LOW OR OUT OF CASH & HAS THE GOV’T EXHAUSTED ITS TREASURY OVERDRAFT? It is a critical question that ought to have been probed well over a year ago when it became public knowledge that fixed salaries and obligations on Recurrent Account were not being paid.