Anguilla’s Premier and Minister of Finance, Dr. Ellis Lorenzo Webster, has made the point that the Government’s financial situation is not a rosy one. He stated, however, that there was hope for some recovery, with a number of projects on the horizon.
He was at the time delivering the opening address during the presentation of the Mid-Year Medium Term Economic and Fiscal Plan, 2021, in the Anguilla House of Assembly on Monday evening, July 26.
The Premier was speaking from a background of fiscal information prepared for delivery by a team from his Ministry of Finance.
That information showed, among other matters, that Anguilla is riddled by foreign and domestic debt of some 400 million dollars; a number of sectors of the economy are not performing well; revenue streams are low; an amount of 50 million dollars is owed to the Government in taxes and fees by businesses and individuals; the Government’s savings and reserves are not at the expected high levels; and there are shortfalls in the budget.
Notwithstanding those disclosures to be made by his team, following his address, Premier Webster told the small gathering:
“Today you will hear the financial state of the country. It will not be rosy, but it is going in the right direction. COVID is still here, but tourism is improving; there are two more marina projects coming on stream and a possible third; two new medical schools are planning to open here in Anguilla; industries of fishing and farming are due for expansion and are being incentivised with the right legislation and polices; light manufacturing is being explored; Aurora Resort Anguilla is renovating and expanding; the construction sector is on the rise and we are still here.
“This Anguilla Progressive Movement is committed in its mission to take care of the vulnerable among us – the young and the elderly, and by God’s help and grace we will continue to do that.”
The first person to speak about the not rosy fiscal situation, mentioned by the Premier, was the Accountant General, Mr. Vonlee Harris. He disclosed that during the period January to June 2020, there was a shortfall in revenue. “During that period, the Government expected to record recurrent revenue in the amount of 137.3 million,” he said. “However, the revenue fell short by 37.3 million, resulting in actual revenue of 99.9 million. For the same period, 2020, the budgeted revenue collected was projected at 159.5 million but due to the impact of COVID, the revenue also fell short by 19.74 million, resulting in a total recurrent revenue collection of 139.7 million. For the period, January to June, 2020, it was projected at 116.1 million. However, the Government underspent by 7.4 million. Compared with the same period, budget expenditure was 103.5 million whilst 104.5 million was actually expended. From the tables and chart, you can see that the Government of Anguilla was much closer in acquiring its budgetary targets of revenue and expenditure for 2021 ….respectively. This was closer to the budgetary amounts compared with 2020 which were 73 percent for revenue and 85 percent for expenditure.
“On the capital side, for the months January to June 2020, revenue was projected to collect 900,000 dollars. But the Government collected 812,000 dollars. Capital expenditure experienced the same budgetary targets – as the budget was 4.3 million and the Government spent 3.3 million, resulting in an under spending of one million dollars.
“For the year 2021, during January to June, the Government’s did not realise any capital revenue. However, on the capital expenditure side, one million was projected to be spent and 1.1 million was spent.”
In terms of the Government’s cash position, the Accountant General reported: “As at the end of June 2020, the bank accounts at NCBA were overdrawn by 12.8 million dollars. Our CCRIF Account was 3.3 million; the Sinking Fund was 9.8 million dollars; Crown Agents, 9,000; the ECCB account was overdrawn by 12.5 million dollars; and our reserves were 516,000 dollars.
‘‘Compared with June 2021, our NCBA accounts were positive at 16.3 million dollars – contributed to by the UK grant; the Sinking Fund was only 2,000 dollars and this account is what we use to pay our debt armatisation; CCRIF was at 10,000 dollars; Irma account was closed; Crown Agents: 10,000 dollars; our ECC operating account is 6,000,000 dollars overdrawn; and our reserves increased slightly to 552 million dollars.
“As of today [July 26], our balance in the NCBA account is 7.7 million dollars; Sinking Fund: 2,000; CCRIF: 10,000; Crown Agents: another 10,000; ECCB account positive with 2.4 million dollars; and our reserves are still at 552,000 dollars.”
Further reports on the financial situation were delivered by the Principal Assistant Secretary, Finance, Ms. Marisa Harding-Hodge; the Director of Economic Planning, Ms. Rhina Meade; and the Acting Comptroller of Inland Revenue, Mr. Lonnie Hobson. His presentation was largely in relation to the Goods and Services Tax.
