FRIDAY, JANUARY
29, 2021
VOLUME 115, No.04
No community spread Page 3
www.thevincentian.com
Frankie gratified Page 5
EC$1.50
Randy sent off Page 11
Another homicide Page 24
No Lahar Page 12
ANOTHER BILLIONDOLLAR YEAR Stories by DAYLE DASILVA THE 2021 ESTIMATES OF REVENUE AND EXPENDITURE which amount to EC$1,212,601,578 and is 2.2 percent higher than the approved figure for 2020, got a safe passage through Parliament on January 27. The overall projection is for a deficit year of EC$50.7 Camillo Gonsalves, Finance Minister, tabled yet another deficit .
million. This anticipated deficit, not new to this country, was this time around attributed to the weak position in which government began 2021 because of the COVID-19 pandemic, and the expected slowdown in economic activity for the coming year.
The minister of finance added that taxes on income and profit was also expected to fall by 4.3 percent, or $7 million — the same with taxes on goods and services which was expected to decrease by EC$7.2 million or 3.7 percent and taxes in international trade and transactions to fall by 7.8 percent or EC$13.7 million.
Tax sources taking a blow Expenditure – Revenue Including in that projected decrease is a Recurrent Expenditure in 2021 was blow of a 5.4 percent projected to amount to EC$895,199,329, inclusive of to tax sources. It was estimated that amortization (EC$175.1 million, 14.8 tax sources would generate EC$554 million to the Consolidated Fund and non-tax sources EC$93.4 million, a one percent drop.
per cent increase) and sinking fund contributions (EC$2 million, 51.1 percent decrease). Capital Expenditure EC$317.4 million, a 2.1 percent increase, was projected to be used primarily for physical infra-structural projects aimed at reducing the vulnerability factor. Financing was expected to come from Current Revenue amounting to EC$647,386,000, a decrease of 4.8 percent, and Capital Receipts of EC$565,212,575. Continued on Page 3.
PUBLIC DEBT INCREASES FINANCE MINISTER CAMILLO GONSALVES, during his presentation of the 2021 Revenue and Expenditure at a sitting of the House of Assembly last Wednesday, January 27, disclosed that the public debt stood at EC$1,871,029,887, as of December 31, 2020. This figure, the Minister said, represented a 12 percent increase over the figure for 2019. In detailing the debt, Gonsalves said the domestic debt increased by 17.2 percent and was now put at EC$579.6 million, with external debt registering an increase of 2.9 percent to now stand at EC$1.29 billion. The increase in the external debt was the product of soft loans from agencies like the World Bank
and other development agencies, against which some net payment were made during 2020. Those included a payment of EC$2.5 million to loans from the Caribbean Development Bank; EC$6 million on a loan from the Republic of China on Taiwan; EC$4.2 million to ALBA; EC$1.5 million to the CARICOM Development Fund and EC$5.8 million to bond holders. The total debt service for 2021 is projected to be EC$271.9 million, or 41 percent of the current revenue.