by Linda Straker
- Government is making several amendments to 2015 Public Finance Management Act
- Other changes include changes of definitions
- Lower House approved legislation on Tuesday, 17 October
Grenada is to adopt a new financial measure that will result in a fiscal report outlining the status of the country’s financial situation after every general election.
The government is making several amendments to the 2015 Public Finance Management Act. Among the new sections is the financial report required to be presented at the sitting immediately following the first sitting of the new Parliament after the general election.
Presented by Phillip Telesford, the Leader of Government Business in the Lower House of Parliament and current Minister for Social Development, Social Security and Housing, the Minister explained that the report shall be prepared and submitted to Parliament.
The post-election report according to the legislation shall comprise —
(a) updated macroeconomic forecasts and assumptions from the medium-term economic and fiscal strategy or mid-year review report, whichever is the most recent
(b) updated fiscal information including—
(i) Government revenue outturn and forecasts for the current year and the next 2 fiscal years
(ii) Government expenditure outturn and forecasts for the current year and the next 2 fiscal years including for recurrent and capital expenditure
(iii) primary balance forecast for the current fiscal year and for the next 2 fiscal years; and
(iv) the outstanding stock of public debt
(c) an update of the fiscal risk position compared to the fiscal strategy report and the annual budget
(d) the progress expected to be made towards compliance with the fiscal rules and targets under the Fiscal Resilience Act
“This post elections report is one of the most critical components in this bill notwithstanding all of the changes are very significant but this one is very significant,” said Telesford, who explained that this action is all part of Government’s transparency initiatives.
Other changes include a definition for public-private partnership to mean a long-term contract between a private party and Central Government; or a Statutory Body or State-Owned Enterprise, for providing or managing a public asset and associated services, which shall be on terms and conditions as approved by Cabinet and Contingent Liabilities to mean financial obligations which arise by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of Central Government, and includes debt guarantees, demand or price guarantees, and termination clauses or other default provisions that could imply a transfer of liabilities to Central Government, including financial obligations arising as a result of or in connection with public-private partnerships, but excludes letters of comfort.
Members of the Lower House approved the legislation on Tuesday, 17 October 2023, and it now has to be forwarded to the Upper House for members to approve it.