Slight improvement in fiscal out-turn – PM

Although the economy of St Vincent and the Grenadines (SVG) has been showing signs of improvement, we still need to be very careful in the management of the country’s resources.

“The current recurrent balance is $5.2 million dollars plus. Last year, at this time, at the end of April… there was a deficit of almost $4 million dollars,” Prime Minister Dr Ralph Gonsalves said, as he addressed a press conference at the Cabinet room on Tuesday.{{more}}

He added that the overall deficit is 7.37 million dollars, compared to just over 18 million dollars at the end of April 2015.

The total revenue and grants between January 1 and April 30 increased by 5.7 per cent to EC $180.07 million.

“Current revenue EC$178.5 million dollars this year, 6.1 per cent over the comparable period last year which was $168.3 million dollars” he said.

Gonsalves said the Government has seen increased collections in several categories of taxes.

“Taxes on income and profit gone up by 11.7 per cent,” he said, adding, “It’s not an increase in the rate of taxation, it’s just that we’ve seen the collections increase.”

Also, taxes on properties have seen a decline; these include: property tax, alien land holding licences and stamp duty.

Gonsalves said, “I happen to know that in the case of the alien land holding licence, the number is more than what is here; there is some reporting lag.”

Taxes on goods and services went up by 2.3 per cent.

“It is interesting to see that the value-added tax collection gone up by about seven per cent,” Gonsalves stated, adding that there are still arrears on a number of taxes.

Although he commended the eight per cent growth in international trade, Gonsalves said it could have been a little better.

“That could have been a little higher, but the growth is commendable, but we still give too many ad hoc concessions. We have to tighten those,” he said.

“Everybody applies, of course, when you don’t give, you are the worst man in the world, but it has a price. I’ve spoken on this before,” he said, adding, “I have to be enterprising, but I also have to be prudent.”

The Finance Minister noted that the total expenditure, both capital and recurrent, fell slightly. “It’s almost similar to the $188 million dollars last year,” he said.

“Recurrent expenditure went up slightly, just by 1.1 per cent, from $171 million dollars to $173 million dollars.

“Capital expenditure is slightly down comparatively, but there is some reporting lags with that.”

In comments about the fiscal out-turn, Gonsalves said there is some improvement in the numbers; however, he cautioned the public.

“We are not out out of the proverbial woods and still require real care in the management of our resources and the way we spend our money, and of course, the question of the collection of the revenues, we still have some way to go with the improvements in that regard.”