1. Mr. Speaker, the Team Unity Plans and Proposals for the 2016 Budget have been carefully prioritized and programmed to ensure that the various line Ministries would be provided with the necessary resources to assist the Government in the delivery of its mandate for changing lives, increasing growth, sustaining development and prosperity. The economy is now on a path of positive growth and economic activity has begun to return to normal levels after being severely impacted by one of the worst global recessions which took a toll on our economy. During the Budget preparation process, we have been careful in determining new areas to be supported during the upcoming fiscal year. We are confident that we have taken the necessary time to consider the various proposals for new initiatives and the decisions taken as a result will help to move this country closer to achieving its objectives in several areas. We are also confident that the Government would be able to raise the necessary revenue to fund critical areas such as education, health, security, social services and infrastructure development which have a direct bearing on the quality of life of the citizens and residents of our beloved Federation.
2. Recurrent Revenue for the 2016 fiscal year is projected to be $608.3 million. Taxes on Income are expected to generate $102.8 million which would be in excess of the 2015 Estimate by $16.5 million or 19.2%. Taxes on Property are expected to reach $14.8 million. Also, we are anticipating that Taxes on Domestic Goods and Consumption would be $98.8 million while Taxes on International Trade and Transactions, the largest tax revenue contributor would generate $185.8 million. Non-Tax Revenue which is expected to be driven by CBI fees is projected to be $206.1 million for 2016. Additionally, a total of $86.2 million is estimated for Budgetary and Capital Grants which is expected to be higher than the 2015 Estimates by $5.2 million or 6.4%.
3. All of these categories are expected to yield Total Revenue and Grants of $694.5 million. On the expenditure side, an amount of $489.2 million is proposed for Recurrent Expenditure for 2016, a moderate increase of 4.8% over the 2015 Estimate. This would result in a Current Account Surplus of $119.1 million for 2016. A total of $127.7 million is also being proposed for Capital Expenditure and Net Lending in 2016. An Overall Surplus of $77.6 million and a Primary Surplus of $106.7 million is anticipated for 2016. Volume II of the 2016 Draft Estimates provides comprehensive details of all the programs and activities that would be carried out by each Ministry and the details of what are to be achieved in 2016 given the respective budget allocations. It should be noted that the proposed allocation for some Ministries is influenced by the realignment of portfolios based on the current structure of the Government and the assigned Ministerial responsibilities. I will now therefore highlight some of the major programmes and activities for the various Ministries.
4. Mr. Speaker, the Ministry of Justice, Legal Affairs and Communications would be allocated $10.1 million in 2016 for its recurrent activities. This represents a significant increase of $1.0 million (10.5%) over what was allocated in 2015 and is indicative of the additional activities that the Ministry would be carrying out in 2016. An amount of $1.9 million would also be allocated for Capital Expenditure for 2016. These resources will enable this Ministry to continue its very important mandate in the maintenance of peace, order, good governance and protecting the fundamental rights of citizens and residents. To this end, 2016 would witness the implementation of a number of initiatives aimed at developing good governance. These include: i) the establishment of an additional criminal court to address the current backlog of cases; the refurbishment of the Judicial Complex; the modernization of the file management system for the Courts to improve efficiency in the administration of justice; and iv) the establishment of a modern Land Registry. The amount provided would also support the refurbishment of the ICT Centre and the work of the IT Department which now forms part of this Ministry.
5. Mr. Speaker, the Office of the Prime Minister would be allocated $40.6 million for 2016 Recurrent Expenditure representing a $1.9 million or 4.9% increase over the 2015 Estimate. The major portion of these resources would be utilized in the management and ongoing reforms of the CBI Programme. The rebranding of the CBI Programme will continue in 2016 with a view to restoring the integrity and reputation of the Programme. Work will also continue in terms of updating the relevant legislation to buttress the Programme and thereby contribute to its stability both domestically and internationally.
6. It is proposed that the Ministry of National Security be granted $47.6 million to carry out its recurrent activities and $15.4 million for capital projects in the upcoming fiscal year. The allocation for Recurrent Expenditure represents a $3.8 million or 8.7% increase over the 2015 Estimate. The Ministry understands its role as it relates to the issue of crime and national safety and as such will continue its crime fighting efforts by implementing its existing Police Six Point Plan. A portion of the resources would be used to support training, expand the use of Closed Circuit Televisions (CCTVs) and upgrade equipment in the Police Forensic Lab and Crime Scene Unit. It is anticipated that the use of such technology over time would help to reduce the high costs associated with the protection of witnesses. Taken as a whole, Mr. Speaker, I am confident that the investment in the proposed activities of the Office of the Prime Minister and the Ministry of National Security would reap dividends for the Federation.
7. Mr. Speaker, the Ministry of International Trade, Industry and Commerce would be allocated $3.6 million for Recurrent Expenditure and $0.3 million for Capital Expenditure. The proposed resources for Recurrent Expenditure represent an increase of $0.1 million or 4.2% over what was provided in 2015. The Ministry will continue to play a pivotal role in the implementation of our trade policy. Focus will be placed on advancing the country specific issues related to the CARICOM Single Market and Economy, the implementation of the Economic Partnership Agreement with the European Union, and the ratification of the Brazil-Guyana-St. Kitts-Nevis Partial Scope Agreement. After ratification of the Partial Scope Agreement, the Ministry will play an essential role in providing guidance to exporters in gaining access to the Brazilian market.
8. The Ministry of Community Development, Gender Affairs and Social Services would be provided with $7.4 million to carry out its recurrent activities in 2016. This allocation equates to $0.4 million or 6.0% above the 2015 Estimate. Also proposed is an amount of $6.1 million for capital projects to be undertaken by the Ministry.
9. Mr. Speaker, the Ministry of Finance would be granted the largest allocation for 2016 in the amount of $167.0 million for Recurrent Expenditure and $12.7 million for the implementation of capital projects and Net Lending. The allocation for Recurrent Expenditure is $1.3 million or 0.8% below the amount that was provided in 2015. The estimate for capital projects and Net Lending is also below the 2015 budgeted amount by $1.1 million or 8.0%. The Ministry will use a portion of its resource allocation to meet Government’s obligations with respect to interest payments on the public debt which is projected to be $29.2 million for 2016. This amount is $9.8 million (25.2%) below the 2015 Estimate. Additionally, during 2016, the Ministry will make pension and gratuity payments to retired Civil Servants in the amount of $34.6 million, and pay $10.5 million in premiums for medical insurance for Civil Servants and insurance on Government’s assets. The consumption of electricity by Government Ministries and the cost of street lighting are estimated to be $16.0 million representing a $2.0 million decrease from 2015.
10. The Ministry of Agriculture, Cooperatives, Human Settlements and Environment would be allocated $8.5 million for Recurrent Expenditure in 2016. This represents an increase of $0.5 million or 6.4% over its 2015 allocation. The Capital Budget for this Ministry for 2016 is estimated at $4.2 million. During 2016, the Ministry will continue its drive to promote agricultural diversification with the goal of reducing the food import bill. In this regard, special focus would be on increasing output in the production of selected crops including onions, cabbage, broccoli and cauliflower as well as the continued promotion of breadfruit and breadnuts. In the area of fishing, attention would be paid to improving fishing techniques, fish aggregating devices, habitat enhancement and value added fish processing all with a view of increasing output. A number of Capital Projects would be undertaken during 2016 to improve infrastructure in agriculture and fisheries.
11. Mr. Speaker, it is proposed that an allocation of $22.0 million be set aside to support the relevant activities of the Ministry of Tourism. This represents a $3.1 million or 16.5% increase over the budget allocation for 2015. It is also proposed that an allocation of $5.7 million be provided to this Ministry to facilitate a number of capital projects that would enhance the products that we offer to our tourists and Nationals alike. We have attained the goal of exceeding one million cruise ship visitors and expect this growth to continue. We also wish to expand the land based tourism business and therefore special emphasis would be placed on increasing the number of stay over visitors. In recognition of this, the Ministry has been given a significant increase in resources to carry out its programmes and activities for 2016.
12. I now turn to the Ministry of Public Infrastructure, Posts, Urban Development and Transport. This Ministry’s recurrent budget for 2016 is estimated at $20.2 million, representing an increase of $1.0 million or 5.1% over the allocation for 2015. The Capital allocation proposed for 2016 is $23.0 million. During 2016, this Ministry will move more aggressively to promote “Green Growth” through the development of renewable energy in the areas of wind, solar and geothermal. Resources would be allocated to establish an Energy Unit and an Urban Development Unit within the Ministry. In the area of transport, the Ministry would embark on the construction of an East Line Bus Terminal and the upgrade of the Ferry and West Line Bus Terminals to provide a more aesthetically pleasing and comfortable environment for persons who utilize the public transportation system.
13. Mr. Speaker, the Ministry of Education would be provided with $69.4 million for the 2016 Recurrent Budget, an increase of $3.2 million or 4.9% over the 2015 Budget. A total of $15.6 million, $6.7 million or 74.6% more than 2015, would also be provided for Capital Expenditure. These increases represent one of the largest increases in terms of dollar amounts to any Ministry and signify my Government’s commitment to the development of our people. We recognize education as one of the most effective tools for changing lives for the better. Education has enormous power to change people’s situations moving them from poverty to acceptable standards of living. We are therefore providing the additional resources to prepare our people to take advantage of the various opportunities that would emerge as a result of economic growth and development.
14. In 2016, the Ministry of Education would concentrate on improving our education system ensuring that all of our children continue to receive a good quality education. More specifically, the Ministry would be completing work on a new Education Sector Strategic Plan and commence the implementation of a TVET Development Project in collaboration with the CDB. The Ministry would also increase its focus on maintenance of schools and the upgrade of educational institutions for which it is proposed that an amount of $0.7 million be provided in the Capital Budget. In addition to this, the Ministry would commence the construction of the new Basseterre High School during the upcoming fiscal year. As such, an amount of $10.0 million would be provided in the Capital Budget to undertake Phase One of this important project. Another major Manifesto commitment is unfolding.
15. Mr. Speaker, the Ministry of Health would be allocated $46.1 million for its Recurrent Budget for fiscal year 2016, reflecting an increase of $5.5 million or 13.6% over the 2015 Budget. A total of $14.9 million would also be provided for Capital Expenditure. During 2016, the Ministry of Health will continue to emphasize health promotion and education of the public regarding healthy life style choices. The upcoming fiscal year would see the establishment of a new Oncology Unit and the implementation of a number of information technology solutions to various activities at the hospital, health centres and Government pharmacies.
16. The Ministry of Youth, Sports and Culture would be allocated $6.4 million for its 2016 Recurrent Expenditure, an increase of $0.5 million or 8.9% over the 2015 Budget. This Ministry has a crucial role to play in implementing programs and activities that would steer our young people towards positive life styles and re-directing those who are tempted to choose the wrong path. In this regard, the Ministry will be forging stronger relationships with the Ministry of Community Development, Gender Affairs and Social Services during 2016 with the intention of assisting youths at risk. In 2016, the Ministry will be also collaborating with the Ministry of Health to promote sports as a means of inculcating healthy life styles for our young people in particular. With regard to culture, the Ministry will improve its efforts to preserve our cultural art forms and heritage sites, and foster the development of the latent potential of our creative industry. To assist the Ministry with the execution of its mandate, it is proposed that a total of $10.0 million be provided for Capital Projects. These would include hosting of the CPL Games, the further upgrade of sports facilities and the upgrade of Carnival Village.
17. Mr. Speaker, I now turn to the Ministry of Sustainable Development which would be allocated $5.2 million for its Recurrent Expenditure, $0.3 million or 6.4% above the 2015 Budget. A further $8.5 million has been provided for Capital Expenditure. In 2016, the Ministry would continue to focus on initiatives that promote economic growth and development.
18. The Ministry of Foreign Affairs and Aviation has been provided with resources in the amount of $18.6 million to carry out its recurrent activities for 2016. This amount represents an increase of $0.6 million or 3.4% over the previous year’s budget. One of the priorities of the Ministry is to increase diplomatic relations with as many Member States of the United Nations (UN) as possible.
19. Mr. Speaker, it is proposed that the Office of the Attorney General be provided with a budget of $11.6 million for 2016, representing a $1.5 million or 14.8% increase over the 2015 allocation. This Ministry has a pivotal role in the administration of justice and the maintenance of the rule of law in the Federation. During 2016, the Office of the Attorney General would lead the Government’s efforts in regards to electoral reform. Particular attention would be paid to hosting consultations with stakeholders and the upgrade of both hardware and software in the Electoral Office to ensure enhanced security, reliability and efficiency of service.
20. Mr. Speaker, a new Ministry of Nevis Affairs, Labour, Social Security and Ecclesiastical Affairs has been created and would be allocated $1.3 million to carry out its recurrent activities for 2016. One of the main thrusts of this Ministry would be to foster greater relations between the Federal Government and the Nevis Island Administration, targeting synchronization of policy and other important areas that are critical to the development of the Federation. The Department of Labour would continue to perform the role of vanguard in fostering harmonious work relationships through the application of international best practices and judicious resolution of labour disputes. The Department will focus on Occupational Health and Safety in the workplace and embark on the promotion of a Health and Safety Culture. In relation to Ecclesiastical Affairs, the Ministry would seek to establish a partnership to forge closer working relationships with various religious organizations in order to achieve more harmonious communities in St. Kitts and Nevis.
21. Mr. Speaker, I have provided the broad parameters for the estimated revenue the Government intends to raise and the envelopes for expenditure to be provided in support of the successful implementation of our stated goals and objectives for 2016. It is not possible for any budget that covers a period of 12 months to provide all the resources for a Government to fulfill a mandate that was given for five years. We will however use this first budget to advance delivery of our commitments in respect of giving our people a fresh start towards prosperity for all.
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