ST. GEORGE’S, Grenada, CMC – Grenada collected revenue estimated at EC$171.3 million (One EC dollar=US$0.37 cents) during the first two months of this year, with EC$33 million coming from the Citizenship by Investment program (CBI).
Under the CBI program, foreign investors are granted citizenship of the island in return for making a substantial investment in the socio-economic development of Grenada.
According to the Ministry of Finance, the government’s highest revenue earning continues to come from taxes on international transactions, followed by non-tax revenues.
It said that as of January this year, the revenue from the CBI was included as non-tax revenue. The latest fiscal reports show that collectively for January and February, the government earns EC$33 million from CBI, with the amount for January being EC$18 million.
The Ministry said that the government’s current revenue was more than the projected amount, but at the same time, grants received were less than targeted. Collectively for both months, the revenue collected was EC$171.3 million.
“Current Revenue for January 2023 was $87.5 million, $4.2 million more than the 2023 target and $0.2 million less than the collections for January 2022. Total Grants in January 2023 amounted to one million dollars which were $2.3 million less than the target and $4.9 million less than the actual in January 2022,” said the January fiscal report.
For February, the report noted that the current revenue was EC$83.8 million, which was EC$11.6 million more than the 2023 target and EC$25 million more than the collections for February 2022 and total grants in February 2023 amounted to $0.5 million, which was four million dollars less than the target and six million dollars less than the actual in February 2022.
In the area of expenditure, the January fiscal report said that the total Current Expenditure, excluding principal repayments for the month, was EC$48.7m, which was EC$7.1 million less than the EC$55.8 million targeted.
“Capital Expenditure in January 2023 was $13.9 million, $3.8 million less than the amount spent in January 2022 and below the $15.3 million targeted for the month this year,” said the report, which explained that a primary balance, including grants of EC$28.7 million was recorded for January 2023.
It said that amount was EC$10.5 million more than the month’s target and EC$2.9 million less than the amount recorded in January 2022. Principal repayments on debt for January were EC$22.2 million, while interest payments totaled EC$2.8 million.
For February, the total Current Expenditure, excluding principal repayments, was EC$63.9 million, EC$2.8 million more than the EC$61.1 million targeted.
“Capital Expenditure in February 2023 was $14.6 million, six million dollars less than the amount spent in February 2022 and below the $20.9 million targeted for the month this year,” said the February fiscal report.
It further explained that the primary balance, including grants of EC$8.6 million, had been recorded for the month, which was EC$11.7 million more than the month’s target and EC$13.5 million more than the amount recorded in February 2022.
Principal repayments on debt for February were EC$3.1 million, while interest payments totaled EC$2.8 million.
The Ministry of Finance said that the government had an increase of almost five million dollars in the area classified as Employee Compensation, namely wages, salaries, allowances, and employees’ social contributions, compared to 2022.
In January 2022, it was EC$22.9 million, while this year, it was EC$26.5 million. In February last year, the figure stood at E$23 million compared to EC$27.9 million this year.
The Ministry said the government had added almost 600 pensioners to its payroll as of January 2023.
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