BASSETERRE, St. Kitts – WHILE a gloomy economic forecast still hangs over much of the Caribbean and the wider world, Minister of Finance Hon. Dr. Timothy Harris has indicated that the Federation has managed to reduce its national debt.
In his opening address at the Fifth Annual Consultation on the Economy, Harris acknowledged that the shadow of economic hardship still poses a number of serious challenges to the region.
He stated, however, that St. Kitts and Nevis’ performance in both the public and private sectors during the troubling time is commendable.
An assessment of the government’s performance for the last six months revealed a gainful performance, according to the Minister, with the Federation witnessing “one of the best 6 months on record”.
Recurrent revenue for the first half of 2009 increased by 2.7% versus the same period in 2008, while recurrent expenditure for January to June 2009 was 5.3 % less than the $213 million spent over the same period in 2008.
“For the first six months of 2009, the country achieved its most excellent overall balance ever of EC $79.3 million and a primary balance of $132.7 million. It is important for me to put the primary balance into its right perspective.
“This is a significant economic indicator, especially for highly indebted countries like St Kitts and Nevis. The primary balance reflects the resources available to meet debt service payments once all other budgetary expenditures are made,” Harris said.
While the total public sector debt remains high at roughly EC $2.6 billion as of June 30, 2009, Harris explained that the debt is “trending downward” and his ministry continues to work toward its further reduction over time.
“The external environment and happenings significantly determine the economic outcomes of small, open, resource-poor countries such as our own, [but] we are surviving reasonably well in a hostile economic climate that has dampened tourism revenue, diminished our remittance inflows and slowed foreign direct investments,” Harris informed.
He stated that the profit levels of privately-owned companies such as TDC, S. L. Horsfords, Carib Brewery, SKNA National Bank, LIME and the St. Kitts Co-operative Credit Union have played a significant role in helping the national economy.
He stressed that private sector success is appreciated by the Government, as it often translates to a healthy investment climate and an increase portion of profits into the National Treasury.
“I fervently believe that the ability of the Government to carry out its policies, programmes and projects is inextricably intertwined with the prosperity of the private sector. I can assure the private sector that the Government will work with you to realize increased profits,” he stated.
