For the first time in the history of Anguilla, the Government of the island has been able to achieve a budget surplus that has enabled both the paying off of substantial local debt, and provided an opportunity to finance a number of projects and other needs in the public sector.
The achievement was announced in the House of Assembly on Tuesday, December 10, by Premier and Minister of Finance, the Honourable Mr. Victor Banks. Among other matters, as a result of the big budget surplus, Government is in a position to repay longstanding salary deductions to civil servants and staff of the statutory Health Authority of Anguilla.
Premier Banks disclosed the surplus while speaking during the second reading of the Supplementary Appropriation Bill 2019 which he moved. His address in the House began as follows:
“Mr. Speaker, in the earlier part of this year, the House of Assembly passed an Appropriation Bill in the amount of $208, 361, 415, in estimated Recurrent Revenue; and we estimated that Recurrent Expenditure would be in the amount of $213,480,000.
“When Recurrent Expenditure exceeds the anticipated revenue, it means that you are budgeting for a deficit – meaning that what you are budgeting for, you are not going to be able to make, and you will have a shortfall. In this case, the shortfall that was estimated was 5,118,685.”
Premier Banks continued: “Even though we budgeted for a deficit, we are seeing, from the performance of the budget, that we are not going to have a deficit of 5 million dollars, but rather a surplus of 30.73 million dollars…We have in fact earned more than we are spending…Even though we have 30 million dollars, estimated as a surplus, there are things we would have put off in the past that we now find ourselves in a position to respond to.
“That 30 million dollars, we are estimating, is not sitting in the Treasury waiting to be spent but it are funds that we can now allocate towards commitments that we have made – especially on the repayment of debt or obligations to public servants; obligations to medical treatment overseas; to statutory bodies; and obligations to cutting back on arrears. So there are a whole host of issues that can be addressed.”
Mr. Banks outlined a number of areas in which a portion of the surplus money will be spent as follows:
The Anguilla Community College: $516,000; medical treatment overseas: $ 1,720,000; Customs Duty refunds: $400,000; Government of Anguilla deferred salaries (25% owed at the end of October 2019): $1,845,814; Anguilla Health Authority deferred salaries: $1,623,259; Anguilla Air and Sea Ports Authority deferred salaries; $1,011,047; Equity contribution to the Anguilla Development Board: $1,000,000; claims against the Government of Anguilla: $500,000; Insurance to cover Government property and new vehicles: $1,500,000; and grants and contributions (to include payments to the Caribbean Tourism Organisation): $600,000. These payments total $10,716,120.
Premier Banks stated that provision was also made for supplementary capital expenditure as follows: land acquisition for the Blowing Point Port Development: $ 3,502,725; land acquisition for road development (legacy items): $400,000; and IT equipment: $533,539.
Meanwhile, other large amounts of the surplus funds have been committed to various ministries and departments across the public service. The list showing the distributions is available on the Government of Anguilla’s website. The allocations, when added to the above payments as disclosed by Premier Banks, amount to the 30.73 million dollars –the 2019 budget surplus he spoke about.
The Supplementary Budget Appropriation Bill 2019 received the full support of all members who were present at the House of Assembly sitting. Absent were the Leader of the Opposition, Ms. Palmavon Webster and the Second Nominated Member, Mr. Paul Harrigan.
