BASSETERRE, St. Kitts – THE first nine months of 2009 have proven to be challenging for the region, but the Federation has recorded fiscal surpluses and has projected a promising outlook for the rest of the year.
Favourable performances were noted in the nation’s recurrent account and in its overall and primary balances, according to a report issued this week by the Fiscal Division of the Ministry of Finance. For the period January-September 2009, figures show that the nation realized fiscal surpluses in amounts that were above what was expected for that period.
A total of EC $26.13 million was recorded as the Recurrent Account surplus for the period under review, some EC $21.79 million more than the revised target amount. This surplus shows a significant improvement from last year’s EC $9.11 for the same period.
As it relates to the country’s Overall Balance for the first three quarters of the fiscal year, the report noted EC $58.09 million, an improvement of over EC $40 million from the same period in 2008. This figure surpasses the projected amount by EC $33.57 million.
The outcome of the Nation’s Primary Balance also revealed an increase from last year. It totaled EC $126.22 million, which represents a 6% increase when compared to the projected figure for that period, EC$119.11 million. This year’s primary balance surplus grew by EC $27.14 million from the corresponding period in 2008, when a surplus of $99.07million was recorded.
Minister of Finance Hon. Dr. Timothy Harris described the accounts of the first three quarters as “positive, significant and impressive” as he thanked the staff of the Ministry of Finance and all revenue-collecting ministries for ensuring that government’s finances are “efficiently and effectively managed”.
Harris welcomed the promising news as the region is still making efforts to stay afloat amid worldwide economic and financial crisis.
“Given the global financial downturn and the significant negative impact this has been having on economic growth in St Kitts and Nevis and the Eastern Caribbean Currency Union, we are satisfied with positive outturns,” he said.
The Minister of Finance also indicated that the Federation received commendations from an International Monetary Fund team. According to him, the representatives applauded the nation for “keeping on top of the fiscal situation at this time when global economic recovery is still fragile and tenuous”.
Harris urged all stakeholders to practice greater fiscal prudence during the remainder of the year in order to see similar results. He pledged that his ministry will continue on a path of fiscal responsibility.
