CASTRIES, St. Lucia, CMC—Prime Minister Phillip J Pierre presented the 2024-25 Estimates of Revenue and Expenditure to Parliament on Tuesday night, ahead of the policy presentation scheduled for April 23.
Pierre told legislators that his administration had delivered “successfully on the promises made” to the St. Lucian population in the last fiscal package, and it is now “confidently” seeking to provide even more in the Estimates of Revenue and Expenditure for 2024-25.
“Mr. Speaker, we are steadfast in our commitment to meeting the hopes and aspirations of the people of St. Lucia. Fiscal responsibility, truth, and respect for them will continue to guide what we have promised in our 2021 manifesto.”
Pierre, also the Minister of Finance, said that the theme for the 2024-2025 Estimates has been titled the “Year of Infrastructure” and that the aim and objective are to transform the island’s economy through physical, social, and digital infrastructural development.
“Mr. Speaker, this budget will have something for everyone. As we improve our infrastructure, citizens can look forward to better roads, safer school plants, housing opportunities, and increased support for our society’s poor and vulnerable members,” Pierre said.
The government says that for the next fiscal year, its Recurrent Expenditure is pegged at EC$1.50 billion (One EC dollar = 0.37 cents), with Capital Expenditure of EC$298.9 million, interest payments of EC$232.5 million, and principal payments of EC$92.9 million, for a total of EC$1.89 billion.
The government is projecting tax revenue of EC$1.330 billion and non-tax revenue of EC$146.80 million, with capital revenue pegged at EC$2.8 million and grants of EC$108 million, for a total of EC$1.576 billion.
“We project an overall deficit of EC$214.9 million after deductions of principal payments and refunds. We forecast a 5.8 percent nominal increase in the gross domestic product (GDP) for 2024-2025, EC$7.3 billion from EC$6.9 billion over 2023-2024,” Pierre said.
He told legislators that as the fiscal position of our country improves, “we expect that the administrative/procedural bottlenecks and difficulties in accessing government services will be removed. “This fiscal year, the government will continue on the path of fiscal consolidation and economic growth,” he said, noting, “However, enhancing the quality of life of the people and creating opportunities for wealth creation will remain the main objective of government policy.”
The government proposes to spend EC$1.5 billion on Recurrent Expenditures for the 2024-2025 financial year, representing 4.2 percent or EC$60 million more than the amount approved in 2023-2024.
“This increase in recurrent expenditures over the last year indicates the government’s commitment to improving the quality of life of the people. The government’s efforts, coupled with a rise in investor confidence and growth in the private sector, provide encouraging signs that real economic growth in 2024-2025 is expected, barring some natural disaster or negative global economic event.”
Prime Minister Pierre said that Recurrent Expenditures represent 79.3 percent of total expenditures compared to 77.7 percent approved in the 2023-2024 fiscal year, adding, “This increase in expenditure is reflected in all categories due to increased government services and higher rental payments.”
He said wages and salaries represent the lion’s share of recurrent expenditure, amounting to EC$577 million, comprising EC$460 million in salaries and E.
“This amount is approximately 1.2 percent over the amount approved in 2023-2024 and 5.8 percent over the outturn for this fiscal year,r of which EC$38.5 million are salaries for staff working on the various capital projects.”
Pierre said that EC$325.4 million has been allocated for debt service for the new fiscal year, a decline of EC$5.8 million or 1.7 percent from the approved amount for 2023-2024.
“This decline is due to a reduction in principal repayments from EC$112.3 million approved in 2023-2024 to EC$92.9 for 2024-2025. Interest Payments, on the other hand, are expected to remain high due to the increasing trend in variable interest rates. For the fiscal year 2024-2025, total interest payments allocated are EC$232.5 million, representing an increase of 6.2 percent over the approved amount for the previous fiscal year.”
Pierre told legislators that during the budget policy statement on April 23, he would outline “something for everyone, particularly vulnerable and marginal groups in our society.
“As in the previous two budgets, we will continue to provide the much-needed support to the not-for-profit organizations supporting various humanitarian causes such as the homes for the elderly, persons with disabilities, and other similar groups.
“We will also continue to provide for our state-owned entities and regional and international organizations of which we are a part so that their mandates can be fulfilled. The OECS, CARICOM, and the University of the West Indies (UWI) are among those organizations. “
Pierre said that, regarding the UWI, he wanted to reaffirm his government’s commitment to meeting its obligations to this educational institution, “having trained me and so many of our sons and daughters who, in many cases, have gone on to make St Lucia and the wider Caribbean region proud.
“We can do no less if only out of gratitude and respect for this high-quality educational institution,” Pierre added.
He said regarding revenue collection this fiscal year, “I am pleased to report that revenue collection is now back at pre-COVID levels,” adding, “We believe that revenue collection can be improved by reducing the existing administrative and procedural bottlenecks.
“For the upcoming year, we are forecasting a collection of total revenue and grants of EC$1.576 billion, an increase of 1.2 percent or EC$18.1 million over the approved amount in 2023-2024 and 8.4 percent over the amount collected for the end of this fiscal year,” he added.
He said the government is projecting that recurrent revenue inflows will increase by EC$61.9 million relative to the approved estimates for 2023-2024, reaching a total of EC$1.48 billion for the fiscal year 2024-2025.
“Compared to the revised estimates or outturn for the preceding year, recurrent revenue would have increased by EC$99.6 million or 7.2 percent. The increase is expected in part to be due to expansion in construction activities in both the public and private sectors and the multiplier effect of continued growth in tourism.”
Pierre said that taxes are projected at EC$325.2 million, EC$7.9 million above the revised estimates for 2023-2024.
“We expect this category to continue to perform well as economic activity expands,” he said, adding that the controversial Health and Security Levy is projected to record an increase of EC$17.3 million above the 2023-2024 outturn to reach EC$35.4 million for the new fiscal year which is 10 percent of Health and Security expenses.
and then 