by Linda Straker
- Government is seeking EC$350,000,000 for budget year 2023 — an increase of EC$20,000,000
- Funds agreed to under Loan Appropriation Bill will be loans, Bonds or Promissory Notes
- Government operations before financing forecast overall surplus of $62.7 million
Compared to the years 2022, 2021, and 2020, the Dickon Mitchell Administration has increased the amount of money it will seek from Parliament through the Budget Loan Appropriation Bill to fund the budget for the year 2023.
In 2020, the then-ruling New National Party sought EC$100,000,000, while for 2021 and 2022 the amount was EC$330,000,000 for each year, respectively. However, for the 2023 budget year, the Government is seeking EC$350,000,000 — an increase of EC$20,000,000.
According to the 2023 Budget Loan Appropriation Bill, which is among the documents tabled for approval in the Lower House sitting which began on 5 December 2022 with the presentation of the 2023 annual Estimates of Revenue and Expenditure, the funds agreed to under the Bill will take the form of loans, Bonds or Promissory Notes.
“The Minister of Finance is hereby authorised to raise a loan in the amount of Three Hundred and Fifty Million Eastern Caribbean Dollars (EC$350,000,000.00), for the purpose of financing the 2023 Budget,” said the Bill.
The targeted lenders are the International Development Association; International Bank for Reconstruction and Development; Caribbean Development Bank; Eastern Caribbean Central Bank; Regional Government Securities Market, and other companies, banks, and or financial institutions. Interest rate, terms and repayment, and fees are all “to be negotiated.”
The Bill further outlined, “All agreements signed pursuant to this Loan Authorisation Act will be tabled in Parliament as soon as practicable.”
However, while presenting the 2023 Estimates of Revenue and Expenditure, Finance Minister and Prime Minister Dickon Mitchell told the Lower House of Parliament on Monday, 5 December 2022 that the 2023 Budget of EC$1,350,465,246 is fully financed. He said that Government operations before financing are forecast to result in an overall surplus of $62.7 million.
He said that one of the key sources of new external loan disbursements is a Budget support operation with the World Bank of US$30 million or EC$81 million, which will become available during the first half of 2023. “Other sources (drawdown from the Consolidated Revenue Fund and disposal of assets). No other sources of funding are projected. Based on the foregoing, Mr Speaker, Government is expected to generate a financing surplus of $96.2 million,” said Prime Minister Mitchell.