Friday 15th December, 2023 was Budget Speech Day at the House of Assembly. The Honourable Premier and Minister of Finance, Dr. Ellis L. Webster, said that Anguilla’s economy is now quite favourable, despite having experienced a string of setbacks in recent times. With such setbacks now a thing of the past, the Premier declared that projected revenues for 2024 stands at EC$407 Million.
“As we forge ahead into 2024,” the Premier said, “we embrace a renewed mission and vision. It is with great pride that I present this budget under the theme ‘Anguilla Blueprint: Harnessing Technology, Empowering Tomorrow’s Leaders and Building the Future.’”
“The economic performance for 2023 and the prospects for 2024 should enthuse residents and potential investors,” he stressed. “Current conditions in the global environment and large pipeline capital investment projects present a cautiously optimistic positive economic output.”
“For 2024 the Ministry of Finance projects total revenues to be EC$407 million. A figure like this have never been projected before,” The Premier said. “From Taxes on Income, Profits and Capital Gains, which is the bank deposit levy and the ANGLEC Gross Revenue tax, we anticipate to garner EC$5.8 million. Taxes on Payroll and Workforce, encompassing the Universal Social Levy, is expected to generate revenue of EC$21.3 million.’’
“In Taxes on Property, which sees the residential component removed from Property Tax in 2024, “we are forecasting a lowered collection of EC$7.57 million,” he said. “Taxes on Goods and Services, i.e., the GST, are expected to yield EC$ 212. 51 million. Lastly, Taxes on International Trade and Transactions, which are primarily customs duties, are anticipated to bring in EC$62.46 million. There is an EC$94.36 million on non-taxable revenue.”
“The forecasted revenues from grants are receipts of approximately EC$2.98 million from the European Union in support of the EDF, with regard to the Regional RESEMBID Programme,” Premier Webster said.
As far as debt is concerned, the Premier indicated that his administration is doing all it can to reduce Government’s debt.
“The downward trend of public debt,” he said “continues in the fiscal year 2023. Estimates show that the total public debt which comprise central government, government guaranteed, and non-guaranteed debt of statutory bodies is projected at EC$371.92 million or 24.76% of GDP at the end of 2023. This is a decrease of EC$37.94 million against the 2022 total public debt stock of EC$409.86 million or 33.52% of GDP.”
“The trend is to reduce the debt because as [Barbados Prime Minister] Mia Mottley said, ‘You have to reduce debt to secure long term sustainability and to decrease reputational risk,”’ Premier Webster said. “The reason why Government debt needs to be paid off is because it is like a millstone that would hang around the neck of the next generation. And who be unto us if we can do better concerning our debt, but we just keep on ‘kicking the can down the road’ so that our children and their children have to pay debt on our behalf.”
The Premier said that despite the lingering effects from a spate of severe and abrupt setbacks, Anguilla’s economy has demonstrated remarkably progress in 2023. He attributed this to global initiatives, such as the recovery of supply chain disruptions and delivery schedules that have been normalized to pre-Covid-19 pandemic levels, thus helping to regularize economic conditions. He also attributed a favourable economic status to the fact that the world’s Central Banks have tightened monetary policies which has resulted in the deceleration of inflation.
The Premier indicated that in line with predictions for global growth, the Eastern Caribbean Central Bank expects real GDP to increase by 9.61% in 2023, with further growth of 6.95% predicted for 2024.
He also observed that in comparison to recent years which have been impacted by the effects of Hurricane Irma and the Covid-19 pandemic, Anguilla’s economy, which is driven the tourism industry, has almost fully recovered.
“Rebounded Tourism has complimented several other industries, affecting real activity positively,” he said.
He noted that next year construction is expected to contribute significantly to growth related to the airport redevelopment and other tourism related projects. “It is anticipated that home and private building activities will increase in tandem with the growing availability of credit,” he stated.
“The promising future of construction and growing connectivity facilitated by upgraded air and sea port infrastructure are integral to driving Anguilla’s economic growth in the medium and long term,” the Premier further added.
