by Linda Straker
- Current Revenue for January 2020 was $71.3 million
- Current Revenue for January 2021 was $54.1 million
- Dampened economic activity as a result of Covid-19 contributed to weakened outturns
Government revenue for January 2021 was unable to meet the reduced target as the amount collected was EC$17.2 million less than what was collected in January 2020.
“Current Revenue for January 2021 was $54.1 million, which was $5.7 million and $17.2 million below the 2021 target and the collections for January 2020, respectively,” said the January fiscal report published by the Ministry of Finance. Current Revenue for January 2020 was $71.3 million, which was $7.8 million above the target and $5.7 million more than the collections for January 2019.
The report which was published on 11 March 2021 said that total grants received in January 2021 amounted to $4.9 million, which was $2.1 million more than the amount received in January 2020.
“Total current expenditure for the month of January was $44.6 million or $0.7million less than the amount spent in January 2020 and $0.9 million less than the targeted $45.4 million.” The report disclosed that there was a primary surplus (including grants) of $11.1 million was realised for the month of January 2021, which was $3.8 million and $16.3 million less than the 2021 target and the recorded amount in January 2020 respectively.
The Covid-19 pandemic which was declared by the World Health Organisation (WHO) in February 2020 began to erode public finance gains in 2020. The primary surplus and overall surplus were estimated at 2.9% of GDP and 0.9% of GDP respectively.
Dampened economic activity as a result of Covid-19 also contributed to the weakened outturns. Several businesses are negatively affected because of the impact these measures have had on the travel and tourism industry.
However, it is hoped that the rollout of the vaccine will lead to improvements in the economy in the coming months because more and more persons are being inoculated. Grenada rolled out its programme on 12 February and to date, more than 8,000 persons have received the shot.
Health officials are hoping that more than 60% of the population will be vaccinated by June/July 2021.