On 5th December 2016, the Honourable Chief Minister delivered the budget address which gave the fiscal outlook for 2017, proposed expenditure and revenue measures and capital projects. I am sure many persons waited with bated breath to hear whether there would be additional taxes in 2017. I could almost hear the country breathe a sigh of relief when the Chief Minister announced that there will be no new taxes in 2017 – a statement he repeated for emphasis. It is no secret that the Honourable Leader of the Opposition intended to vehemently oppose the imposition of any new taxes on the people of Anguilla. She has made her position quite clear on this matter. I am sure she too is relieved that this is one less fight that she will have to engage in on behalf of her constituents.
Based on the Chief Minister’s presentation, it is evident that there is an expectation that 2017 will not be vastly different from the past few years in terms of Anguilla’s stagnant economy. As a result, revenue projections are cautious and expenditure will continue to be closely monitored, which is not necessarily a bad thing. However, what was missing from this budget presentation is reference, in any meaningful way, to how economic growth and diversification will be spurred. There was reference to the reduction in stamp duty for belongers seeking to purchase land – and the reduction in alien land holding licence fees for land purchased for development, plus the privilege of residing in Anguilla for eleven months a year without immigration restrictions. Both of these measures appear to me to be aimed towards encouraging investment. The pertinent question is whether they are enough.
I would dare to say that the Government needs to engage in some out of the box thinking in relation to economic growth. There has to be an attractive investment package that is offered to encourage persons to invest in Anguilla rather than any other similar country, and there are many other such countries. We have to offer something different which is a win win for the country and the investor. The same cookie cutter measures are not going to cut it.
Rather than the typical tourism developments, Government ought to encourage diversification of our tourism offering to attract the new millennial clientele rather than the clients on which our brand is currently built. Additionally, Government should strengthen the economy by incentivizing investment in innovative areas such as virtual industries, our two hundred mile economic zone, green technology and the list goes on. I would like to be proven wrong, but I don’t think the proposals outlined in the budget even scratch the surface of what needs to be done to jump start our economy. Much, much more is required.
I am not one of the pundits who believes I have all the answers. I certainly don’t, and I am no expert. However, there are experts in the public service, the private sector and further afield. I would therefore encourage Government to tap into their expertise in a deliberate way. Just as there have been task forces, committees and commissions established for a particular period to examine and produce recommendations on certain matters, such as constitutional reform, the same can and should be done for economic investment. Concerted and dedicated effort is needed to get us over this growing hump and on the road to recovery and sustainable prosperity.
While such efforts have not been reflected in the budget presentation, I believe we ought to encourage our Government, as it looks ahead to 2017, to harness the necessary vision and expertise to develop an economic recovery roadmap for Anguilla – and to begin the implementation process with haste. As time drags on, more and more opportunities are lost for Anguilla. It is important that we treat this with the urgency it deserves.
