by Linda Straker
- Revenue and grants for the first 6 months of 2024 was EC$737.4 million
- In June, IMF annual Article IV consultation described Grenada’s economy as sustainable
- Government will suspend Fiscal Resilience Act because of hurricane devastation
Government’s Revenue and grants for the first 6 months of 2024 was EC$737.4 million surpassing the targeted amount by EC$41.2 million, according to public records as posted on the website of the Ministry of Finance.
However, a breakdown of the data shows that grants continue to not reach the targeted amount as projected in the 2024 Estates of Revenue and Expenditure. The 3 main areas of revenue were the Citizenship by Investment Programme (CBI), the Inland Revenue Department (IRD) and the Customs and Excise Unit.
Grants received for the period January to June were EC$9.7 million, but the targeted amount was EC$41.6 million. The highest amount of revenue earned was EC$247.7 million from the CBI, followed by the IRD with EC$240.3 million; third was the Customs and Excise Department with EC$222.6 million. The total revenue earned was EC$727.7 million.
The fiscal report for the period under review showed that Government’s recurrent expenditure was EC$429.2 million, while capital expenditure was EC$116.8 million. In a statement issued in late June after a team from the International Monetary Fund (IMF) consulted its annual Article IV Consultation described Grenada’s economy as sustainable.
“Grenada’s economy is experiencing sustained, strong growth supported by buoyant tourism. A surge in Citizenship by Investment (CBI) revenue has resulted in a large budget surplus, an increase in government deposits, and lower public debt,” said the statement issued days before Hurricane Beryl affected the nation with winds of over 120 miles per hour.
The statement said then that the key fiscal policy priorities are to improve the management of these potentially volatile CBI revenues, contain the growth of recurrent expenditures, and strengthen public financial management.
In the aftermath of the hurricane which devastated the northern part of the island as well as Carriacou and Petite Martinique, Government has declared the worst affected parts as disaster zones. This is expected to trigger financing to assist with the relief and recovery process.
Though the worst hit areas are declared disaster zones, the south of the island, which is the main commercial area, has not been affected. Hotels are operating as normal and the seaport and airport are functioning.
However, Government has announced that it will suspend the Fiscal Resilience Act because of devastation caused by the hurricane.
