40 / 55
Page | 39
The company currently has debt of approximately J$84B and an
accumulated deficit of $53B. This is a growing monster that needs to be
put into the Consolidated Fund.
5)
The
NIF
– has been incurring a CASH DEFICIT between the recurring income
(net contributions) and recurring expenditure – payments of NIS benefits
and Administration expenses. Hear these numbers, Mr Speaker! The cash
deficit was: $3.6B for 2013/2014; and, 2014/2015, $4.1B. The deficit
projected for 2015/2016 is $3.35B.
Mr Speaker, the National Insurance Fund is paying out more money than it
is receiving which is being augmented by income from investments and
loans and which I believe are NOT a sustainable formula to run a state
pension fund in the medium to long-term period. This urgently requires an
actuarial review.