BRADES, Montserrat (March 22 2011) – On Thursday, Chief Minister, The Honourable Reuben T. Meade is expected to present Montserrat’s budget for the fiscal year 2011/2012.  The ‘Budget Speech’ is expected to give primary emphasis to  the development initiatives for the island that should sustainable economic growth and reduce the island’s budgetary deficit so far cushioned by DFID budgetary support.

According to officials there is likely to be an increase in development expenditures if the recurrent side of the budget is decreased. All government departments were asked to make adjustments to their budgets and prioritise needs to be able to produce savings where possible. This outcome would be a direct reflection of the recommendations from the Department for International Development (DfID) during budget talks in February 2011. DfID officials stressed the need for the Government to spend its resources on capital investments and improving technical capacity rather than maintaining or increasing its recurrent expenditures such as salaries.

The 2011/2012 budget is likely to highlight current development priorities including the Salem to St. John Road project, construction of Port Little Bay, energy and power and investment promotion initiatives.

Overall, the 2011/2012 fiscal package is expected to be slightly more than last year’s total of $123,436,900 Eastern Caribbean Dollars. This increase will be reflected in a higher allocation towards development than the 2010/2011 figure of EC$ 25,421, 734.

Montserrat continues to receive budgetary support from DfID, which will allow for the government to present a balanced budget. The government is likely to be tasked with achieving the same contribution target as last year, which was $45,095,100 and to implement recommendations for improving its internal budget deficit through economic growth and mobilization of the private sector, according to DFID recommendations.

Chief Minister, the Hon. Reuben T Meade, who is also the Minister of Finance and Economic Development, will present the Budget Speech during the Legislative Council session opening this Thursday 24 April 2011, at 4:30pm in the Sir George Martin Auditorium at the Montserrat Cultural Centre.