SVG’s fiscal position has improved says PM

Prime Minister and Minister of Finance, Dr. Ralph Gonsalves, disclosed in the House of Assembly on Thursday August 17, 2006, that the fiscal position has improved up to the end of July, 2006 compared to the similar period last year. The Prime Minister made this disclosure in the debate on the Public Sector Loan (No. 2) Bill, 2006.{{more}}

According to the Prime Miniser, current revenue collected by the Government increased by 16 per cent from $184.3 million up to 31st of July, 2005, to $213.9 million up to July 31, 2006.

He said, while Recurrent Revenue spent by the Government increased by 7.8 percent from $182.3 million up to July 31, 2005, to $196.4 million up to the end of July 31, 2006, the current account balance or “the surplus on the current account rose by more than 7 times from 2.1 million (July 31, 2005) to $17.5 million (July 31, 2006).

The Finance Minister acknowledged that Capital expenditure increased by 20.3 percent from 32.1 million (July 31, 2005), to $38.6 million (July 31, 2006) and the overall deficit (current and capital accounts) fell from $26.6 million (July 31, 2005) to a manageable $18.1 million (July 31, 2006).

Insofar as real economic growth goes, the first quarter of 2006 in St. Vincent and the Grenadines, according to the Eastern Caribbean Central Bank, recorded economic growth of 7 per cent. Real economic growth for 2006 is estimated at in excess of a commendable 5 per cent.