ROADTOWN Tortola, BVI, 13th April 2011 - We were very pleased that the VI Government introduced the budget early in the year which brought the public finances into balance,” Mr. Roberts said, in response to a question of the Territory’s finances. “We are satisfied and very pleased that the budget itself …because it is a budget by its figures shows that the VI is bringing its finances into balance. “

He noted that in 2009 the United Kingdom (UK) Government was aware it was going to be a struggle for all OTs Governments to manage their public finances.

“From 2009 we have been having more detailed discussions to prepare them for the potential drop in revenue and other fiscal challenges that were emerging. The need to make sure expenditure and revenue were brought into balance,” the Director explained.

As it related to the Virgin Islands (VI), Mr. Roberts noted, there was evidence at that times that “expenditures without corrective actions was going to rapidly outstrip its revenues which would have create a growing deficit”.

While the Territory is in control of its finance, the FCO Director further stated that the VI is still in breach of the liquid asset in the borrowing agreement between the VI and the UK. However, he added, “but revenue has held up rather well”.

This he credits to Government’s commitment to maintain and achieve balance of the public finances through the budget, which would include the proper mechanisms to guide politicians in making the right decisions.

In ranking the VI, the Director said the Territory is not a red flag, nor is it a green flag. He explained like many places in the world, it’s an amber flag, meaning if Governments are not committed to managing their finances properly they will be heading down a difficult path.

“It is not a case of ticking a box because it is not easy for a Government to constrict expenditure and increase revenue into a reality,” he added.

Article taken from Virgin Islands News Online

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