Today is Budget Day in St Kitts and Nevis where Prime Minister and Minister of Finance Dr Timothy Harris will present the Annual Financial Statement and Budgetary proposals for 2022.
Stay tuned to this article where we will provide updates on the major elements within the presentation.
Refresh regularly to see the latest updates.
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1:00- That is all from us for today’s presentation tomorrow the opposition leader will have his chance to respond to the PMs presentiation.
12:26- Fiscal Measures and Interventions
All civil servants will before Christmas receive a double salary Dr Harris announced to loud cheers.
“This is a historic development and I want to commend them for saying how please they are. The entire country looks forward to this.”
He said they do so for a number of reasons but importantly but mainly for being a “compassionate government.”
“We understand even as we meet here thousands of persons are still suffering. Thousands are still not fully engaged in our hotels and our restaurants we appreciate that and they need some help.”
12:22-He said they are positive about 2022.
“Positive in the context of the predictions of the IMF and the statistics department the country will grow in double-digit terms.”
Dr Harris noted that total revenue and grants will be comprised of just over $430M and from taxes, we will generate $460M and $15.5M via development aid and is not anticipating having to take on debt
On the expenditure side $910 million by the end of 2022. $728.6M for recurrent expenditure and $180.9M for capital expenditure and net lending.
“If all things remain the same we anticipate we will realise an overall surplus of 4M a primary surplus of 21.8M for the fiscal year 2022.”
He anticipated they will eliminate the need to borrow and we will allow the government to attain the goal of a 60% debt to gdb ratio by 2023.
12:16– He said they are reasonably projecting that in 2021 there will be a surplus
“Over the period 2022 to 2024 it is projected would on average result in an overall surplus of about $900,000.”
Recurrent revenue he said is projected at around $853M and recurrent expenditure is projected at $723M.
He said they are on target to realize a comeback in the economy and it will be in a better place.
12:05-National Security
He said that National Security continues to be a top prerogative of the team unity administration
“We have put forward 80.1M to assist that particular Ministry.”
Hoped national security head will use the investment well.
“We will continue our efforts to keep the country safe and none can deny that St Kitts and Nevis in 2021 is far more at peace and far safer than it was up to 2014.
“The primary responsibility of the state must be to protect the people from harm. When it comes to national security preserving the peace we make no apology for investing.”
Noon Healthcare
the Finance Minister said the money provided for healthcare will help to provide necessary resources to fund additional medical professionals and we need them.
A general surgeon, urologist, oncologist, orthopaedic surgeon, ear nose and throat specialist will all be recruited for the health institutions.
“We will provide me with diagnostic services with the introduction of a new MRI machine to be installed at the JNF General Hospital for the first time.”
He said support for health centres will continue including the renovation work of the health centre in Basseterre.
“The future for our health systems look promising and we can take comfort that our investments which have been proposed will lead to 2022.”
11:55 Cannabis
The prime minister said St. Kitts and Nevis are working hard to seize all opportunities within the cannabis industry.
“Our federation will seek to collaborate with neighbouring islands in the sub-region and wider Caribbean as well as to establish relationships with global cannabis professionals and entities to build a thriving cannabis industry here.”
11:50 CBI Programme
Dr Harris noted the ability of the Federation to weather the economic storm caused by the pandemic was significantly influenced by the continued success of the CBI program.
He added that the CBI program has maintained its ranking as one of the best in the industry.
The program he said received the highest score in the citizenship timeline pillar as a result of the accelerated application process.
“We have transformed our CBI we have come a long way from the difficult period in 2014. “
“The robust procedures that are embedded in the program have enabled us to maintain our platinum brand and has ensured we take a significant share in the major markets around the world.”
11:35- Tourism
He said this sector has borne the full brunt of the economic fall out of the pandemic.
Dr Harris noted experts in the travel industry who are hopeful for a return to pre-pandemic global travel levels by 2023.
“My government has initiated a strategy for putting the tourism sector back on track. Our strategy is designed to allow the sector to act as a catalyst for substantial economic growth and development through the creation of employment, spurring entrepreneurship and infrastructure development.”
11:30–Agriculture
He said the goal of the government is to produce more of what is consumed and it continues to align with the commitment to making strides in achieving sustainable development goals.
“The injection of boost the production of the agricultural sector ensure greater food security has helped in this regard. Month after month we have had strong positive returns in crops, livestock and in the fisheries sector.
“We are happy our stimulus package has aided our fisherfolk and farmers in making progress and earning better livelihoods.”
11:27– D Harris said in the medium term, the outlook for the construction sector is positive per cent expect to have a growth rate of 11.7 percent in 2022.
“We are working to ensure the construction sector is back on track in 2022 and sustained in the medium term.”
11:25– he said the economic challenges have had little impact on the public sector debt.
The prime minister announced that the debt to GDP ratio increased from 54.3% at the end of 2019 to 67.9% at the end of 2020.
“The 13.6 percentage point decline in economic activity in 2020 was the primary reason for the increase in the debt ratio. As a result of our stimulus packages we are already seeing a rebound in economic activity and this will bring a further positive re-alignment of our debt to GDP ratio.”
11:20–The Minister of Finance deficit of 63M in 2020 but deemed it necessary to continue programs that would result in job creation and spur economic activity in our key sectors.
This was a direct commitment to investing in our people even in the face of the worst health and economic crisis which resulted in diminished revenues and required a much larger outlay of expenditure in certain areas.
11:15– Adress the Domestic Economy he said as the pandemic continues to test the fortitude and resilience of our citizens and residents and our economy at large.
He disclosed the Team Unity Administration maintained its record of being a good steward of government finances.
“Substantial stimulus packages and considerable capital projects remained that would boost economic activity”
11:13–Dr Harris says that in 2022 the global downside risk includes supply chain disruption, the ongoing social unrest in parts of the world. Geopolitical tensions that have emerged the cyberattacks on critical infrastructure and the impact of severe natural disasters.
He added that the economies in the ECCU recorded a decline in real GDP of 14% in 2020. The decline in economic activity was attributed to significant contributions in key sectors. Tourism fell by 63.2%.
“Across the Currency Union member states suffered a decline in economic activity ranging from 2.7% to 23.8%.
“The 2022 growth prospects within the currency union are now at 6.9% and would be contingent on a number of variables.”
11:04-He said they are taking a cautiously optimistic view to 2022.
“These proposals are setting the wheels in motion to advance our plans to get St Kitts and Nevis back on track.”
11:00– He said it will not only assist the government assist investing in its people.
“When you have $100M investment in education you know we are talking people investment. When you hear $73M for Healthcare you know we are talking people investment.”
He said will build resilience in response to the pandemic.
10:55– Recommended the following allocations which represent proposals for recurrent and capital expenditure and net lending and principal payments.
The Governor-General they have provided $1.73M; for the working of the Parliament $1.97M; the Audit Office $1.27M; Justice and Legal Affairs $12.3M; The Office of the Prime Minister $110M; National Security is allocated $80M; The Ministry of International Trade Industry $5.3M; The Ministry of Finance $300M; Social Development and Gender Affairs $42.7M; Agriculture, Fisheries and Marine Resources is allocated $20.2M; Tourism and Transport $32.7M; Public Infrastructure and Post 59M; Education gets $104M, Health gets $73M; Youth Sports and Culture get $11.7M; Sustainable Development gets $25M; Foreign Affairs and Aviation$25M; The Office of the Attorney General gets $12.3M; Labour gets $7.06M; Human Settlement and Ecclesiastical Affairs and National Health Insurance get $11.5M; Environmental and Cooperatives $2.9M; Entrepreneurship and Communications $9.28M for a total expenditure of $952M.
10:47–Dr Harris announces the allocation of $952.2M to support recurrent and capital expenditure as well as to cover our principal payments.
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