ST. JOHN’S, Antigua, CMC – Antigua and Barbuda is anticipating a primary deficit of EC$27.3 million (One EC dollar=US$0.37 cents) this year, compared to EC$79.7 million the island recorded last year.
Prime Minister Gaston Browne, in delivering the EC$1.3 billion budget to Parliament last Friday, said that the trajectory for the fiscal performance 2023 “is one of notable improvements.
He told legislators that the overall deficit is poised to narrow by EC$42 million, from EC$197.8 million in 2022 to EC$155.8 million in 2023, representing 2.7 percent of the gross domestic product (GDP).
Browne said that this fiscal upswing is chiefly attributed to a surge in total revenue and grants, ascending from EC$918.1 million in 2022 to EC$971.4 million in 2023.
He said tax revenue will account for 87 percent of projected revenue, estimated at EC$846.3 million, an increase of a robust 12.5 percent fueled by the strong performance of critical taxes.
Browne, also finance minister, said import duties are expected to generate EC$126.1 million, a 15 percent boost over 2022, and the revenue recovery charge is set to yield EC$102.3 million, a 12.5 percent increase.
Revenue from the Antigua and Barbuda Sales Tax I(ABST) is projected to climb to EC$335.6 million in 2023. Still, while tax revenue expanded, non-tax receipts will decline by $38.4 million to $121.2 million in 2023.
Browne said that the Citizenship by Investment program (CBI), through which foreign investors are granted citizenship of the island in return for making a significant contribution to the socio-economic development of the country, contributes nearly 60 percent of non-tax revenue and, even though this contribution is expected to amount to EC$67 million in 2023 – the same level as in 2022.
He said the overall non-tax revenue is expected to decline, adding, “The reason for the decline is that while the government received a large inflow of funds from the Eastern Caribbean Asset Management Company (ECAMC) -, the receiver for ABI Bank – these inflows were immediately paid to beneficiaries of the Depositor Protection Trust and to liquidate the severance due to the workers at Jolly Beach Resort.”
Browne said in 2023, relentless efforts to control public sector debt stabilized at the 2022 level of EC$3.8 billion.
“This accomplishment is more than numerical; it signifies a reduction in the debt-to-GDP ratio from 75 percent in 2022 to 66 percent in 2023, steering Antigua and Barbuda closer to the ECCU (Eastern Caribbean Currency Union) benchmark of 60 percent `by 2035.”
The Finance Minister said that based on data available as of September 2023, the St. Kitts-based Eastern Caribbean Central Bank (ECCB) projects that actual output in Antigua and Barbuda will grow by 8.1 percent in 2023.
“We will all recall that, as our economy plummeted in 2020 by approximately 19 percent and lockdowns were the order of the day across the globe, my government, having achieved a limitation on the spread of the COVID-19 virus, decided to reopen our ports and our economy on June 1, 2020.”
Browne said that a “single, farsighted decision opened our country to many privately owned aircraft and wealthy visitors that helped sustain our economy.
“So, too, did our decision to allow the opening of bars, restaurants, and other businesses in a careful manner, permitting many of our people to return to work. Additionally, we continued building infrastructure, incentivizing hotels and resorts to upgrade their properties.
“This was how we got a head start in recovering our economy and restoring it to the path of growth that we had enjoyed before 2020. “
He said the result was growth of 8.2 percent in 2021, 9.5 percent in 2022, and spectacular growth of 8.1 percent in 2023, unmatched by any country except Guyana with its recent oil and gas exploitation.
“My government is proud to have given courageous and visionary leadership to our country and our people, who benefitted from its implementation in their interest, wellbeing, and progress.”
He said that while highlighting the performance of tourism and construction, given their higher contribution to GDP, “it should be noted that every other sector in the economy, from agriculture to manufacturing and wholesale and retail trade, to transportation, telecommunications, and financial services have experienced growth in 2023.
“That was a significant accomplishment, which enlarged the employment of our people and expanded the income of a wide range of service providers, including taxi drivers and vendors and workers, at all levels, in our hospitality sector.
“Our policy of expanded domestic ownership, to include acquisitions in the banking, petroleum storage, and distribution sectors, among others, has resulted in increased national income, fueling increased domestic wealth creation and economic growth,” Browne told legislators.
Debate on the budget will begin on Tuesday.
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