by Linda Straker
- Estimates of Revenue and Expenditure for 2024 is EC$1,656,356,499
- Recurrent Expenditure budgeted at $901.4 million or 23.4% of GDP
- Government will continue same list of exempted VAT products in 2024
Finance Minister Dennis Cornwall has informed a sitting of the Lower House or House of Representatives that the country’s Estimates of Revenue and Expenditure for 2024 is EC$1,656,356,499. This is an increase to the 2023 budget, which was then estimated at EC$1,350,465,246 by more than EC$300 million.
Presenting the 2024 budget statement during a sitting of the House on Monday, 4 December 2023, Cornwall who became Finance Minister in April said that the strategic priority areas for 2024 will be Health and Wellness; Education, Youth and Sports; Physical and Digital Infrastructure; Agriculture, Food Security and the Marine Industry, Culture and the Creative Industry, and Energy Transition and the Environment.
Providing a breakdown of the estimates, he told the House that total Grants are projected at $104.6 million or 2.7% of GDP. “This total includes only Capital Grants from the following main sources: the World Bank, the Caribbean Development Bank (CDB), the Green Climate Fund (GCF), and the Government of the People’s Republic of China,” he said while pointing out that Recurrent Expenditure is budgeted at $901.4 million or 23.4% of GDP.
Total Recurrent Revenues is projected at $1,216.8 million or 31.6% of GDP while Capital Expenditure is budgeted at $419.5 million or 10.9% of GDP. He also disclosed forecasts for a Primary Surplus including Grants of $57.2 million equivalent to 1.5% of GDP and an overall Surplus of $0.6 million. Recurrent Expenditure excluding principal repayments is budgeted at $901.4 million, an increase of 28.8% compared to the estimated outlays for 2023.
The 2024 Capital Budget will be financed by Grants of $104.6 million (24.9%), Loans of $56.5 million (13.5%) and Local Revenues of $258.4 million (61.6%). The main source of external financing is the Green Climate Fund (GCF), which accounts for 29.9% of the total external financing.
Cornwall said that Government will continue with the same list of exempted VAT products in 2024 but will revise the vehicle dealers and the licencing fee. These fees will increase as of 1 January. The exempted goods are soya chunks, veggie patties, olive oil, canola oil, soya bean oil, sunflower oil; coconut oil, red kidney beans, black-eye peas, lentil peas, hand sanitisers, adult diapers, baby diapers, toothpaste, toilet paper; bathing soap; laundry soap; sanitary napkins and condoms.
In terms of new initiatives, Cornwall said that Government will be paying doctors a monthly EC$1,000 to their monthly salary as of January 2024 and will continue paying nurses the EC$500 honorarium which was implemented to their salary as of January 2023.
Cornwall said the economy will continue to grow through the tourism and construction sectors. Construction will include continuing work at 2 hotel properties in the private sector.
Looks good. But not enough in this summary to comment on. Looking forward to a more detailed analysis of the budget.