VOLUME 12 ISSUE 20

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VOLUME 12 - NO. 20

MAY 21ST, 2016 – MAY 28TH, 2016

Website: www.suntci.com

Email: sun@suntci.com

Tel: (649) 339-5879

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Fax: (649) 941-3281

www.facebook.com/tcisun

$68MILLION SURPLUS

T

he Turks and Caicos Islands’ (TCI) economy continues to perform remarkably well, recording a surplus of $68.6million for the financial year ending March 31, 2016. According to the just-released fourth-quarter financial report, the overall fiscal position that was more favourable than the original and revised estimates for the year. This was largely due to the extraordinary returns in areas such as Import Duties, Hotel& Restaurant Tax and Stamp Duty on Land Transactions; while appropriate legislative compliance measures continued to be enforced, as well as emphasis continued on adherence to both the Public Finance Management and the Public Procurement Ordinances. In the fourth quarter of the year, there was a surplus of $10.3 million. “With the help of our taxpayers, vendors, civil servants and lenders we have managed to advance many of our projects that focused on infrastructure within the islands and the education sector, while delivering a budget surplus for FY 15/16. However, TCI we must not become complacent, there is still much work ahead of us, as we continue our work in ensuring sustained economic stability and also the continual improvement of the standard of living of all residents of our islands,” said Minister of Finance, Hon. C. Washington Misick. Recurrent Revenues for the fourth quarter totaled $70.7 million. Total Recurrent Revenues for the year of $259.8 million, recorded a favourable variance of 12% ($27.9 million) against the budgeted amount, while realizing a growth of 5% when compared to the previous year. The variances are attributable largely to the following items: Growth in Import Duties which totaled $67.3 million at the end of the fourth quarter; up 12% from the budgeted amount; Strong Performance in the Real estate sector with Stamp duties on Land Transactions, totaling $26.9 million for the year, being 45% above budget; Favourable results from the Hospitality sector, recording $58. 2 million at year end for Hotel & Restaurant Tax. According to the report, recurrent expenditure made up somewhat for previously shortfalls during the fourth quarter, being up 33% ($14.0 million)

Kids enjoying in the festivities of Haitian Flag Day

Young children are getting more involved in the festivities of Haitian Flag Day in Turks and Caicos Islands. Pictured here are three young children who competed for the title of best costume depicting the Haiti flag. All three of the kids were winners and given an envelope with a token which leave the young kids even more excited and looking forward to the activities each year. from the budgeted amount. Full year expenditure however, was 6% ($11.8 million) below budget, while recording a growth of 14% over last year’s outturn. The total amount spent on capital projects at the end of the fourth quarter was $11.6 million representing a $14.8 million or 56% shortfall from the budgeted amount of $26.4 million. This $14.8 million however, will be retained in the Development Fund to cover the cost of projects that were deemed committed as of March 31, 2016. Major projects during the year included: $2.2 million spent on Long Bay High School Phase 2; $2million Spent on Repairs to the Causeway Bridge; $500,000 million spent on

repairs to the Wellness Centre on the island of Grand Turk; $500,000 spent in on various Carnival infrastructure projects and $400,000 spent on Glass Shack road development TCIG’s total outstanding debt as of March 31, 2016, was $44.3 million; including $28.0 million borrowed from Royal Bank of Canada during February as part of a refinancing arrangement and a $5.0 million Policy Based Loan received from the Caribbean Development bank during March. All ministries expenditure outturn came in less than the estimated amounts for the financial year except for the Attorney General Chambers that incurred unavoidable unexpected consulting fees during

the year in regards to some highly sensitive cases. Due to the timing of the expenditure, it was not possible to execute a supplementary appropriation, the report added. The fourth quarter of fiscal 2015/16 recorded a negative cash flow of $19.5 million compared to a budgeted cash deficit of $4.0 million and a prior year cash deficit of $39.1 million due to using a larger amount of accumulated cash to repay the UK guaranteed bond in February 2016 thereby reducing TCIG’s indebtedness. The cash balance at the end of the fourth quarter was $25.2 million, which was $41.6 million over projected net cash deficit of $16.5 million and $19.3 million below the results for the same period last year. Continued on Page 2

Chief Justice slams DPP in judgment - Page 6

Tourist dies at sea - Page 10

SIPT case in disarray - Page 9

TCIG borrows $15M from RBC - Page 5


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