by Linda Straker
- As of 1 October, freight capped back to 2019 levels
- Revenue collection surpassed projections for first 6 months of 2022
- Mid-year review focuses on the period January to June 2022
Prime Minister Dickon Mitchell explained to Members of Parliament during the first regular sitting on Thursday, 29 September 2022 that his administration’s decision to remove the cap on freight and petrol is linked directly to Government’s revenue collection agencies earning more than what was projected in the 2022 Estimates of Revenue and Expenditure.
“The mid-year review prepared by the Ministry of Finance, clearly indicates that total revenue collected from tax, grant, non-tax revenue that the actual collections are more than the projected,” Mitchell told members while wrapping up debate on a EC$194 million Supplementary Appropriation Bill.
“We are happy that the revenue collections are doing better than projected, and it is because of that we were in fact able to address and take some of the fiscal measures that we have taken to ease the burden on the citizens of Grenada as it relates for example, to removing the cap on gasoline, to eliminating the petrol tax up to December,” he said. “It is recognising that revenue is performing better than projected that we are able to fiscally and prudently take those measures to help ease on average Grenadians.” Prime Minister Mitchell is also the Minister for Finance.
“And so, when we took the decision which will be implemented as of 1 October to cap the freight back to 2019 levels to ease the burden on the average citizen, we did so in the context that to date the collection from the customs department is more than projected. If it was less then it will be far more difficult if not impossible,” he said.
The mid-year review report of Grenada’s economy was among documents laid in the House by the Leader of Government Business for public scrutiny. It said that revenue collection surpassed projections for the first 6 months of 2022. The report focuses on the period January to June 2022 during which time the New National Party (NNP) led by Dr Keith Mitchell was administrating the country’s affairs.
“Public finances continue to bolster in 2022 with revenue collections for the first 6 months exceeding the target and the comparable period of 2021 by $62.2 million and $67.4 million respectively,” said the report which indicates that real GDP growth is expected to be 3.3% at the end of 2022.
“A primary surplus including grants of $58.2 million is estimated for 2022, surpassing the budgeted deficit of $34.2 million while a modest overall deficit of $1.6 million is estimated at the end of this year compared to a budgeted deficit of $97.9 million.” The report was prepared by the Ministry of Finance.
