by Linda Straker
- Grenada’s 2020 Estimate of Revenue and Expenditure is set at EC$1,146,010,705
- Public Debt repayment receives largest allocation
- Fiscal position continues to be strong, with expected primary surplus after grants of 6.8% of GDP, at end of 2019
Grenada’s 2020 Estimate of Revenue and Expenditure is set at EC$1,146,010,705 with the largest allocation of EC$354,018,921 going toward Public Debt repayment which, by the end of 2019 is estimated to be 55.8% of GDP.
The estimates were presented in the house on Wednesday, 20 November 2019 by Finance Minister, Prime Minister Dr Keith Mitchell. Members in the House of Representatives are expected to commence debate on the budget on Thursday, 21 November 2019.
Receiving the second-largest allocation is the Ministry of Education, Human Resource Development, Religious Affairs and Information in the sum of EC$105,022,091 while the third-largest allocation went to the Ministry of Health, Social Security and International Business in the sum of EC$72,155,371.
Presented under the theme “Towards Vision 2035, Empowering our communities, Growing our economy, Protecting our environment, Strengthening our institution,” the Prime Minister said that Grenada is expected to continue its strong fiscal performance for 2020.
“Grenada’s fiscal position continues to be strong, with an expected primary surplus after grants of 6.8% of GDP, at the end of 2019. This performance is anchored in our adherence to the Fiscal Responsibility Act and backed by continuous reforms in both the Inland Revenue Department and the Customs and Excise Division,” the Finance Minister said.
Dr Mitchell said that the public debt ratio is on a path of decline moving from 108% in 2013, to 62.7% in 2018 and projected to be 55.8% by the end of the year. “It is instructive to note that this expected outturn is not only below the 60% target established by the Eastern Caribbean Central Bank (ECCB), but it will also be achieved way ahead of the 2030 deadline,” he informed the house and a broad section of invited guests which included diplomats, senior public servants and members of the public.
The decline in public debt, the Prime Minister said has resulted in a reduction in debt repayment requirement by EC$101 million between the seven-year period of 2013 to 2020. “The reduction in the repayment obligation reduces the burden on future generations and creates the space needed to advance developmental programmes that would keep this nation on a path of growth and development,” he said.
The estimates provide for Recurrent Revenue to be at EC$786.2 million, Recurrent Expenditure at EC$633.7 million; Current Account Surplus EC$152.5 million; Capital Expenditure EC$225.3 million; Primary Surplus after grants EC$212.8 million; Overall Surplus after grants EC$145.8 million and Principal Repayment/Amortisation EC$287.0 million.
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