KINGSTOWN, St. Vincent, CMC – Prime Minister Dr. Ralph Gonsalves says the government has collected an increase of nearly 10 percent more in revenue during the first nine months of this year than last year.
“Total revenue and grants increased by 9.2 percent over last year at the same time. Current revenue increased by 9.2 percent over last year at this point,” Gonsalves told a news conference.
“We had budgeted for current revenue and grants to be EC$564.3 million (One EC dollar=US$0.37 cents). We are over the budget, slightly over what we budgeted, but what we have collected in revenue and grants is 9.2 percent more than last year,” Gonsalves said.
He said in terms of current revenue, the government had budgeted to collect EC$535 million but collected EC$531 million, “meaning that our numbers are only 0.8 of one percent off from what we budgeted to what we have collected. But on the current revenue, we are 9.2 per cent also above what we ordered last year.
“It means that the Ministry of Finance did pretty good estimates about these two matrices, both total revenue and grants and current revenue. That’s what it is.”
Gonsalves told reporters that there are some other areas of estimates “as to monies that you may get to fund the capital budget, you will fall short. But as we will see, we have also been doing well on the capital side.”
Gonsalves said he would not go through the individual taxes but would give a summary.
“Capital revenue and grants went up by 9.1 percent. In terms of total expenditure, that is recurrent and capital, that went up by 7.4 percent. And significantly we had a six percent increase in wages and salaries as a component of the recurrent expenditure. On the current expenditure, we are up by 8.3 percent. Total expenditure, we are by 7.4, current expenditure up by 8.3.”
Prime Minister Gonsalves said capital expenditure increased by four percent over last year as of the end of September.
“But our number, which is now EC$126 million by the end of September spent on the capital, … I happen to know there are several matters that have not yet come to account on which spending has taken place.”
The prime minister said the current account balance improved over last year at the end of September.
“It was just over EC$10 million last year in the deficit. It’s now just over six million dollars in deficit on the current account. The overall balance was about EC$91 million in the deficit last year — that is to say, both capital and recurrent. And it’s no 87. That’s the summary story here.”
Gonsalves said that in November, the government will take an EC$74 million supplementary estimate specifically for the port to Parliament.
“The money is already there. But we did not want to bloat the number, and the way the fellows have been proceeding with the project, we need more money to address what is happening. So, I had to go to the Parliament with it. But it’s not additional financial, just additional budgeting.”
He said the government would likely have to go to Parliament to exceed the borrowing limit it had set to account for what has to be borrowed to upgrade the Arnos Vale Sporting Complex in prep told reporters.
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