BASSETERRE, St. Kitts, CMC – Prime Minister Dr. Terrance Drew says sustainable development in the Twin Island Federation can only be achieved through collaboration and partnership with stakeholders from all sectors of society.
“As we embark on this transformative journey, it is equally important that we identify and discuss the obstacles to economic growth and seek to address these challenges collaboratively,” Drew told members of the St. Kitts and Nevis Chamber of Industry and Commerce ahead of its 75th annual general meeting.
In a virtual address to the event, Prime Minister Drew the Chamber of Industry and Commerce, as a vital pillar of the economy, plays a pivotal role in shaping policies and initiatives that foster economic growth and prosperity.
“Your invaluable insights and expertise are instrumental in guiding our efforts towards a sustainable future,” he said, adding the projections for 2023 indicated a commendable overall surplus of EC$11.2 million (One EC dollar=US$0.37 cents) and a primary surplus of US$28.2 million, underscoring the commitment to fiscal responsibility and prudent financial management.
“The medium-term outlook presents a promising trajectory of sustainable debt reduction and economic growth. Real GDP (gross domestic product) is projected to grow 3.6 percent in 2024, signaling positive economic momentum.”
Prime Minister Drew said that his administration had committed to achieving the goal of a sustainable island state (SIS) by 2035. In the 2024 national budget, the Government outlined the SIS strategy built upon seven pillars crucial to the Federation’s SIS agenda.
He said these included green energy transition, food security, economic diversification, sustainable industries, the creative economy, COVID-19 recovery, and social protection, adding that the transformation will be underpinned by sustainable fiscal and debt management.
“It is important to note that this agenda aligns with our commitments outlined in the Paris Agreement, the Multilateral Environmental Agreements (MEAs), our National Determined Contribution (NDC), and our National Development Planning Framework (NDPF),” Drew said, noting that the Government, to translate the agenda into programs, projects, and activities has commenced engagement with stakeholders in which members of the private sector have been included.
Prime Minister Drew said regarding the business community, his administration, which came to power in August 2022, has been a vital partner in supporting business development and stands ready to continue helping businesses, large and small.
“Central to our fiscal strategy is the reduction of reliance on Citizenship by Investment Programme (CBI) revenues and adopting an equitable tax regime. We will continue to provide tax concessions to businesses based on the relevant legislation and current tax incentive policy.”
Under the CBI program, foreign investors are granted Citizenship of the Twin Island Federation in return for making a significant investment in the socio-economic development of St. Kitts-Nevis.
“As you know, the Corporate Income Tax rate has already been reduced to ease the financial burden for businesses as they continue to operate in the post-pandemic era. The business community also continues to benefit from the extension of the temporary reduction in the Unincorporated Business Tax rate during 2024.
“Further, the government intends to adopt a more comprehensive approach to tax reform in consultation with our private sector and social partners, “Prime Minister Drew said, adding, “We will provide more details of these plans as they are developed during this year and over the medium term.”
He said improving the country’s infrastructure is paramount to fostering economic growth and enhancing the quality of life for citizens.
“We recognize the pressing need to address road infrastructure deficiencies in various residential areas across the Federation,” he said, noting that building upon the investments made in 2023, the Government is committed to extending these efforts.
“Over the next two years, we will allocate resources to expand road works to residential developments,” he said, adding, “Furthermore, we are poised to initiate several major capital projects in the upcoming year.”
Prime Minister Drew said that it is essential for the private sector group to continue its advocacy for robust infrastructure development that aligns seamlessly with the Government’s goals, “ensuring that our initiatives not only meet the needs of the community but also promote business interests and economic prosperity.
“By collaborating with the Chamber, we can leverage expertise, resources, and networks to drive these projects forward, creating jobs, fostering innovation, and stimulating economic activity across sectors,” he said, urging the stakeholders to “seize the opportunities before us, overcome the challenges ahead, and build a future where every citizen thrives and flourishes.”
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