by Linda Straker
- Economy anticipated to show recovery signs in 2021
- Public Debt Management Act enacted June 2015
- MTDS highlights a preferred strategy that can be used over 2022-2024
At the end of 2021, Central Government’s debt is estimated to be EC$2.06 billion, of which external debt amounts to EC$1.50 billion and domestic debt EC$ 0.56 billion. Total debt service for the year is estimated to be $ 367.8 million or 40.3% of revenue.
That’s among the findings in the executive summary of the Medium-Term Debt Management Strategy (MTDS) 2022-2024 which was recently laid in the Houses of Parliament as part of the documents of reference for the 2021 Estimates of Revenue and Expenditure.
“The debt data utilised for the MTDS encapsulates the Central Government’s external and domestic debt. T-bills are recorded at their discounted values only for the purpose of this MTDS,” said the Strategy which explained that Government Guaranteed Debt, was not included in the analysis except in cases where these debts were subsumed by the Government.
Following a sharp decline in output of 13.8% in 2020 occasioned by the Covid-19 pandemic, the economy is anticipated to show recovery signs in 2021. “The pace of recovery is contingent largely on global recovery and the path of the pandemic. Growth is expected to average 4.3% over the medium term (2022-2024),” said the Strategy. “The fiscal sector is projected to improve over the medium term on the assumptions of: (i) modest increases in total revenue, consistent with the projected economic activity; and (ii) deliberate measures (approved by the Cabinet) to contain discretionary expenditure and improve the strategic orientation and prioritisation of expenditure to safeguard medium-term fiscal and debt sustainability.”
“The primary and overall surpluses are projected to average 3.2% and 1.4% of GDP respectively over the period 2022-2024. Consistent with global trade restrictions and tightening financial conditions, the trade deficit is estimated to expand in 2021, a persistent widening is anticipated over the medium term.”
The Public Debt Management Act enacted in June 2015 provides the framework for effective debt management, which involves the establishment and execution of a strategy for managing public sector debt. The Medium-Term Debt Management Strategy (MTDS) is a plan aimed at achieving the desired debt portfolio consistent with the debt management objectives. It ensures that the Government’s funding needs are met with due consideration of its cost and risk objectives. The MTDS, among other considerations, highlights a preferred strategy that can be used over the medium term (2022-2024).
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At least the ARC sailors will help out a bit, although not everyone in Grenada welcomes them….
THINGS HARD:
Yes, because Millennials activating chronic idle-ness.
Whilst the world needs organic foods, desperately!
Traditionally, and customary – its down our alley.
So, before artificial intelligence gets incapable, of being controlled.
Here is a golden opportunity, for food security and financial stability.
We got the best quality soil, sea, rivers and lakes…
We are so blessed and fortunate –
Some encouraging vandalism…
Since independence, citizens getting various scholarship –
To build our nation.
The youths today, don’t know who they are.
It appears like some spinning top in mud,
And bawling their eyes out –
THINGS HARD!
Yes, check “Richman”,
One of the most panoramic landscape on Earth.
Guess what – it belongs to inmates’ paradise.
I proclaim, set the captive free!
We got unlimited attraction sites,
Since Cain killed Abel –
THINGS HARD!
Yes, take a tour around our tri-island state –
Breathtaking natural beauty.
In the “bigger world”,
One has to pay lots of moolah to view,
But right here, we abusing freedom –
THINGS HARD!
Yes, look at the vast area of greenery,
But no animal husbandry…
A recent visitor asked me, where is Agro-industry?
I’m looking for Flori culture.
I said, “One step forward and two steps backward,
You would see ‘one-one’ farmers indulging
They diligent and dedication,
Afforded their children’s education,
House and land…
For extra details, and free advice –
Don’t get mixed up with politics and religion.
Leave this culture of indoctrination and dogmatism behind.
Love Your Country; love your nation.
But Thieves, criminals and gangsters –
They are not welcome here.
Don’t tarnish our esteemed reputation.
Enrich your lives –
THINGS HARD!
Yes, So what are you doing about this? Obesity,
Hold on a minute – since Ivan stole our kitchen utensils,
Massive lineup at fast food establishments – all the time.
Rum O; Party O; Brand names O;
[2 and 3 cell phones O] Fast books O; TV O…
Surprisingly, I felt like me alone could see –
Some roadway lines, a few traffic signs
And the number of vehicles keeps increasing.
Henceforth, some drivers are so ignorant,
And even reluctant, to have a backyard garden –
For their own family’s nutrition.
THINGS HARD!
Yes, This is so frustrating to see:
Bamboo, Balisier and Bacano –
Invading agricultural space.
Whoa! Watch vine.
We need an urgent “Time Out” –
THINGS HARD!
Yes, life is what we make it – stop fantasizing!
The pulse of the community is dormant,
Echo boomers flaunting everywhere
And imploring the diaspora,
Send more barrels, “board or plastic” – cram them all.
THINGS HARD!
By: Bernard Charles.
So at the end of 2021 the current administration published the national debt which is eye watering EC$2.06billion .
SGU currently provides 25% of this country GDP so do the maths we are in real trouble based on the current world situation.