2007 Government Revenues Strongest in BVI History ----
By Mellica McPherson
It is not often that a national Budget is seen as a presentation of exciting news -- good news sometime, but rarely the cause for celebration.
On 7 November, a few hours after the Budget address some residents rejoiced and cheered the Deputy Chief Minister, and Minister for Finance, Health and Social Development, Hon. Ronnie W. Skelton’s proclamations, not about the BVI’s strongest revenue ever of $254,017,000, but about the announcement of tax reduction among other things.
Under the banner “Promises Made-Promises Kept” the Minister in presenting the fourth and final budget of the Fifteenth Legislature said that “we are here to look ahead to the coming year to offer up before the people our continuing vision of how we will meet the needs of this community and continue to build that foundation that will help us achieve our fullest potential.”
“Yes, this Territory’s GDP is rising and by the end of 2006 the GDP will be US $1.008 billion and that is a good thing, and our debt is falling – and that too is a good thing, and we have a surplus—and that is a very good thing. However, none of these statistics or numbers has any true value unless the people of the BVI are feeling that their own well-being is improving. On this point, there is surely more work that can and must be done,” he said.
On that note, the Minister stated that it is no secret that over the past several years, the cost of living in the BVI has gone up substantially, and he explained that there are a number of reasons for this. Hon. Skelton listed some of the reasons as being: the rising cost of fuel, inflation in the United States, as well as the influx of new money into our Territory from the growing tourism and financial services industries.
Hon. Skelton explained that “collectively, the rising cost of living represents a real challenge for our people, and so in this Budget, we are taking strong measures to provide meaningful relief for the people of the BVI.”
Hon. Skelton announced the expansion of Government’s tax-relief efforts. He informed that starting in fiscal 2007, Government will increase the tax exemption level from $7500, to $10,000.00. This, he said, means that taxation will begin after the individual has earned his or her first $10,000.00 income. “This move will have a direct, immediate and sizable impact on our families -- it will mean more dollars staying in our people’s pockets—money that they can use to cover their necessities—food, fuel, housing, education. That is a critical priority for this Government.”
MEASURES TO HELP LOWER PRICES
Hon. Skelton also announced two steps aimed at lowering prices on goods sold at businesses. The first step, he said, will be to institute in the coming years a two-tier duty system that will allow businesses to bring in goods from abroad at a discounted rate, thus allowing them to pass the savings on to consumers. Minister Skelton pointed out that the second step will be a special duty reduction on construction materials including cement, aggregate and steel. This, he said will also allow savings to be passed on to consumers in the form of lower prices. “
The Finance Minister announced that for the “second year in a row—this Government has ended the year with a surplus above recurrent expenditures in excess of $30 million,” and informed the Council that it was hard to overstate the significance of this accomplishment, “with this surplus, we are going to be able to make a contribution of two $2,500,000.00 to the Territory’s pension fund. In addition $1,683,900.00 will be contributed to the Reserve Fund. Finally $1,500,000.00 will be contributed to the Emergency / Disaster Fund and Contingencies Fund; while $500,000.00 will be contributed to the Repairs and Renewal Fund.” Hon. Skelton informed that after finances were allotted to those special Funds, $25,342,500 is still left for major development projects.
HIGH GROWTH RATE IN 2006-2007
The Finance Minister reminded that in 2005, the BVI recorded growth of 5.75 percent, and informed that the current projections show that the BVI will beat this already impressive feat with a 2006 growth rate of approximately 7.2 percent. According, to Hon. Skelton this year’s projections anticipates a collection of $254,017,000 from taxes and fees: “That’s right Madam Speaker, in excess of ¼ billion dollars without raising taxes on our people; that will make this year’s government revenues the strongest in BVI history.”
From the Budget address it was learned that Government intends to allocate this year’s budget of $254,017,000 as follows: the Governor’s Group will receive $34,946,900; the Chief Minister’s Group will receive $42,956,600; the Ministry of Finance will receive $17,203,200.00, the Ministry of Natural Resources and Labour will receive $14,380,300.00; the Ministry of Education, Youth Affairs and Sports will receive $39,154,800.00, the Ministry of Health and Social Development will receive $37,157,700.00, the Ministry of Communications and Works will receive $41,538,400.00, Pension and Gratuities, Public Debt and Miscellaneous will receive $20,390,400.00 and contributions to the Pension, Reserve, Emergency/Disaster, Contingencies and Repairs and Renewal Funds will be $6,288,200.00.
2007 PROJECTS & PROGRAMMES
In addition to itemizing the allocations, the Minister mentioned some of the projects and programmes that Government intends to undertake in fiscal 2007. These projects will include, but not be limited to, the allocation of: $1.0 million to continue to upgrade the Territory’s beach infrastructure and management and maintenance of historical sites; $8.0 million which is made of loan funds and capital contributions will be allocated to fix the East End/Long Look and Road Town sewerage problem; $400,000.00 to continue work on the East End/Long Look Harbour development; $500,000.00 to complete the purchase of Virgin Gorda Airport; $1.0 million to complete the purchase of Prospect Reef Hotel; $525,000.00 to commence work on the detention centre to house illegal immigrants; $300,000.00 to construct a visitor centre on Anegada; $500,000.00 to complete work on the Customs Department Information Technology Programme; $500,000.00 to build a new Community Centre in Carrot Bay; $500,000.00 to build a Community Centre in North Sound, Virgin Gorda; $50,000.00 for the design of a Community Centre in Purcell Estate; $800,000.00 to build an auditorium at the Bregado Flax Educational Centre on Virgin Gorda; $300,000.00 to replace the bridge on Jost Van Dyke adjacent to the Methodist Church; $400,000.00 to build sidewalks from Towers to the Ferry Terminal West End; $300,000.00 for side walks from Palestina to Pockwood Pond; $200,000.00 for sidewalks in Huntums Ghut; $400,000.00 to replace the Bridge in Carrot Bay, $200,000.00 to address the drainage problem from One Stop Mall to the late Mr. Ogard Smith residence in Road Town; $3.4 million to complete acquisition of Long Bay Beef Island, George Dog and for compensation for Anegada lands; $950,000.00 for schools rehabilitation; $586,000.00 for continuation of the computerization of schools; $490,000.00 for recreational facilities; $500,000.00 preparatory work on the new High School; $3million towards the completion of the Cane Garden Bay Community Centre; $2.5million to complete the purchase of the new incinerator; $475,000.00 to build a helipad on Jost Van Dyke; $100,000.00 to upgrade the air-conditioning system at the Anegada Community Centre; $750,000.00 to pave roads in Brandywine Bay, Nottingham Estate and Stevens Lands; $250,000.00 to complete phase 1 of a Town Centre in Long Look; $150,000.00 to complete sidewalk from Baughers Bay to CSY; $200,000.00 to build an alternate road out of Baughers Bay; and $450,000.00 to pave roads in Pickering Estate and Rogue Bay.
Minister Skelton explained that the goal of the 2007 budget is to submit before the judgment of all a record of achievement that the promises made are the promises that have been kept. “The budget represents a continuing vision for how we will meet the needs of this community and continue to build that foundation that will help us achieve our fullest potential,” he said.
