REPORT #461 March 2002

Produced by the Belize Development Trust

Belize Development Trust Budget for Belize approximation for year 2002


This budget was done in 30 minutes on the back of an envelope, so take it accordingly. It doesn't matter whether you figure $310 million cash flow for GOB this year, or $370 million. The working capital estimate is $152 million Bz. Anything above that is to be put to interest on foreign loans and principal if any possible, and or Foreign Reserves.

Government working Budget is $152 million Bz. for the year.

Broken down as follows:

$1 million for piers, airports, beaches.
$7 million for politician salaries, benefits and political party need.
$2 million for Hurricane Emergency Trust Fund ( NEMO )
$10 million for National main Road Trust Fund ( National inter-district highway system )
$152 million minus $20 million leaves $142 million for governing.

Of this, 36 % is to go to the six districts. Divided up at 6% each, to operate local services, such as schools, local side roads, medical, etc. Or $51.2 million for all six districts.

Or $8.5 million per district

Divided by 12 months, = $708,333 per month, for each district.

Matching GRANT system of centralized Belmopan Federal governing priorities. An equal 36 % or $8.5 million set aside by the legislature and legislated in a budget to be awarded for specific priorities, like police, schools, medical, etc and awarded on competitive matching GRANTS. In other words, if the Department of Education in Belmopan want more computers in each school and the legislature and the Senate agree, then each district can set aside an amount from their operating budget of $708,333 per month, or $8.5 million for the year for computers for their schools and get an equivalent matching amount from Belmopan. Or medicines, or classrooms, or school buses, or whatever.

Total allocated for six districts government managing of local affairs. $102 million.

$20 million already set aside,( $102 million, half of which is to be used for local government in each district) and the other half available where needed by special matching GRANTS. $142 million minus $102 million, leaves $40 million for running National affairs. The North, South and East West Highway system, the Post Office, the BDF, the diplomats and embassies, ceromonies and Federal Belmopan civil servants salaries and offices and buildings.

Of total estimated cash flow, whether $310 million or $370 million, subtract the $152 million operating budget. Use the lower estimate of cash flow. and take $310 million subtract the $152 million. This leaves $158 million to be allocated for loan interest payments and principal if possible. If the cash flow exceeds the $310 estimate, then the extra will be set aside in Foreign Reserve savings account.

Just a rough budget. Let's see what Said and Ralphie come up with?

Trustees note: The cash flow of the government from taxes over the past 40 years shows that there is never enough money to do what various political parties would like to do, to develop the nation of Belize. But even the political parties should by now, have learned that the modus operendi of government centralized operation spending and organization is not the best way to develop a NATION of Belize. Belize is composed of six districts. Towns like Orange Walk, Corozal, San Pedro, Caye Caulker, Dangriga, and Punta Gorda are developing without hardly any cash inputs under the present system of government financial allocations and ministerial priorities. They are developing as towns and will eventually be cities, similar and equal to the old colonial capital of the port town of Belize despite lack of financial monies from the central government. This old capital, the port of Belize City, actually receiving hundreds of millions of dollars over the last forty years to the detriment of building a whole nation of six districts.

By now, both the UDP and the PUP, or any other upcoming political party should have realized that the nation as a WHOLE needs to be treated as a development project. That the potential is unlimited, if we develop the nation and not just one port town. The establishment of governmental department services to each and every community is a priority for development. The establishment of infra-structure on equal terms for each district are also necessary nation building goals. One only has to look at Africa and the ex-colonies there, to see the mistakes in nation building they have done, following the British or other European colonial model.

The challenge facing Belizeans and aspirants for the political party machines; is how to re-structure the political and financial system to provide equitable development in each district. While Belize City, the old colonial port has received almost ALL the money over the past forty years, there is no logic, or reason to say, that given equal infra-structure and access to governmental department services in other villages, communities and districts; that incoming foreign investment would not then therefore pick some other geographical location in the country of Belize, to build their businesses.

I would suggest that political parties need to view the nation as a whole for financial and development purposes and the only way to do that in the beginning of a developing the nation campaign, is to spread both governmental departmental services and public infra-structure equitably by district geography and not by population representation. The current methodology of governing is putting the cart before the horse, it automatically causes population flows to concentrate in one port town. Hardly, a lesson for nation building, but great for African style dictatorships, revolutions, and warfare.

Back to Main Belize Development Trust Page

Maintained by Ray Auxillou, Silvia Pinzon, MLS, and Marty Casado. Please email with suggestions or additions for this Electronic Library of Belize.