There are more signs that the government's financial woes are worsening with the Ministry of Finance admitting that it will have to renege on an agreement to pay nurses their retroactive salaries this month.

About $1 billion was due to be paid out, however; the Finance Ministry says it does not have the money to release the outstanding salaries.  The money is owed under a Heads of Agreement signed between the Nurses Association of Jamaica and the government last year. Senator Arthur Williams, State Minister in the Ministry of Finance, delivered the bad news Tuesday night. Senator Arthur Williams. The junior finance minister said he was not in a position to say when the retroactive salaries will be paid. "It was due in March and being the end of the year, payments are usually (made) earlier than other months, but revenues will not allow us to pay it in March. The matter is being looked at to see when we can pay," said Senator Williams. The fiancé ministry's inability to deliver on its promise to pay the nurses follows an RJR News report that the fall off in inflows to the government's coffers worsened in January despite tax increases during the month. Data show that revenues are $29 billion behind target and could even fall short of new projections set by the government.