Prime Minister projects economic growth of 2.9 percent in 2010/2011

Monday, April 19, 2010 – Prime Minister and Minister for Finance Hon. Stephenson King, on Monday evening, presented his close to four hours over one billion-dollar budget address. The theme for the 2010 estimates of revenue and expenditure is: “The Road to Recovery: Engineering Growth, Social Cohesion, and Resilience to External Shocks”.

The prime minister noted that this year’s budget, mirrors much of what is proposed in the Eastern Caribbean Currency Union’s eight-point stabilization and growth programme.

“It is envisaged that a period for successful implementation of the programme would include a period of adjustment from 2010 to 2012, and a period of transformation from 2013 -2020. Fragile nations such as ours, can ill afford the bickering wrought by partisan politics, while there are urgent policy initiatives beckoning the invaluable input of all—especially in a difficult economic climate such as we are experiencing now.”

The prime minister said increases were recorded for both current and capital expenditure, with current expenditure increasing by 5.6 percent, driven mainly by increases in salaries and wages. On the other hand capital expenditure resulted from a rise in construction projects which was driven mainly on spending on the national hospital and National Wellness Centre.

Prime minister King said, while government is keen on controlling the increase in public debt, the impact of the financial crisis has made it necessary to incur additional debt, as government sought to implement programmes aimed at stimulating economic activities.

“Government’s strategic management of the debt will include the development of debt management strategy with the assistance of the Eastern Caribbean Central Bank (ECCB), aimed at primarily the debt ratios to prudential targets, overtime. It is expected that the strategy will be formally endorsed by Cabinet and submitted to Parliament for ratification.”

The prime minister said economic growth is projected at 2.9 percent this year.

He says the 1.2 billion dollar budget will be financed by recurrent revenue, capital revenue resulting from the proceeds from the sale of land, grants from friendly governments, new bond funding, and other loans from the World Bank and Caribbean Development Bank.

The National Television Network will continue to provide coverage of the 2010 2011 budget, when the debate commences on Wednesday.

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