ST. GEORGE’S, Grenada, CMC – The Grenada government Tuesday successfully tabled legislation adopting a new financial system that will result in a fiscal report outlining the status of the island’s economic situation being provided after every general election.
The Dickon Mitchell government is making several amendments to the 2015 Public Finance Management Act, introducing the financial report to be presented immediately at the first sitting of the new Parliament following the general election.
Leader of Government Business Phillip Telesford, the Minister for Social Development, Social Security and Housing, explained that the report should be prepared and submitted to Parliament.
According to the legislation, the post-election report shall comprise updated macroeconomic forecasts and assumptions from the medium-term economic and fiscal strategy or mid-year review report, whichever is the most recent.
It also allows for updated fiscal information, including government revenue outturn and forecasts for the current year and the next two fiscal years, government expenditure outturn and forecasts for the current year and the next two fiscal years, and recurrent and capital expenditure.
The report will also provide a primary balance forecast for the current fiscal year and for the next two fiscal years, the outstanding stock of public debt, an update of the budgetary risk position compared to the fiscal strategy report and the annual budget, as well as the progress expected to be made towards compliance with the fiscal rules and targets under the Fiscal Resilience Act.
“This post elections report is one of the most critical components in this bill notwithstanding all of the changes are very significant, but this one is very significant,” said Telesford, adding that it is all part of the government’s transparency initiatives.
Other changes include a definition for the public-private partnership” to mean a long-term contract between a private party and Central Government or a Statutory Body or State-Owned Enterprise, for providing or managing a public asset and associated services, which shall be on terms and conditions as approved by Cabinet.
It said Contingent Liabilities” will mean financial obligations which arise by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of Central Government, and includes debt guarantees, demand or price guarantees, and termination clauses or other default provisions that could imply a transfer of liabilities to Central Government.
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