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Premier Amory delivering the 2005 Budget Assembly in the Nevis Island Assembly Chambers. |
Charlestown Nevis (December 21, 2004) -- The Honourable Premier and Minister of Finance in the Nevis Island Administration, Mr Vance Amory, said Tuesday that Caribbean countries are likely to achieve more robust growth in the future, stemming out of the projected growth in the world economy, and the economies of the regions trading partners.
He observed that this should alleviate current account imbalances and increase primary fiscal positions, adding that with sound macro-economic policies, the outlook for the region looks more favourable for 2005.
The situation for Nevis is very similar to the rest of the Caribbean, noted Premier Amory, as he delivered a two-hour 2005 budget address under the theme Poised for Economic Success in the Nevis Island Assembly Chambers.
With the world economy rebounding and the regions most important trading partners projecting robust GDP growth in 2005, he said that the time was propitious for significant expansion in the Nevis economy.
Already major indicators are showing upward trends, reported the Premier who said that tourist arrivals for the first four months of 2004 represented an increase of 40.6% over the same period in 2003. Expectations are also high in the industry that 2005 will produce even better results than the years 2003 and 2004.
According to the Minister of Finance, the offshore sector (in Nevis) is showing signs of recovery after the debilitating effects of the actions of the Financial Action Task Force (FATF) and the organisation for Economic Cooperation and Development (OECD).
Recurrent revenue for fiscal year 2005 has been estimated at EC$82.84 million, representing a projected increase over 2004 budget by 8.2%. Recurrent expenditure is estimated at EC$80.88 million, resulting in a projected surplus on the recurrent account of EC$1.96 million.
The increase in recurrent revenue is expected to be realised due to the current restructuring of the Customs
Department, the expected improvement in property valuation, the introduction of new products in the financial services sector, the on-going training in other revenue centres to more effectively manage revenue collection, and projected increase in economic activity, said Premier Amory.
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Permanent Secretary in Premiers Ministry, Mrs Venetta Hobson-Moving (right), discussing the budget with the President of the Nevis Division of Chamber of Industry and Commerce, Mr Alford Tyrell (left) and past president, Mr Chris Martin, in the public gallery. |
To ensure greater control over expenditure, the Premier said that during 2005 the Administration would introduce a government wide computerised financial information network, whereby all government offices would be linked to a computerised network that would be based at the Treasury Department.
This will eliminate the need for vote books and the preparation of vouchers, he commented. All accounting transactions will be done on line in a paperless environment. With the new system, it will be easier to control expenditure because purchase orders will have to be generated from the system, and will not be allowed in situations where the funds on the expenditure head are insufficient.
He pointed out that Nevis debt stood at EC$246,337,627.00 and while the Administration was meeting its debt obligation, he articulated that there was no doubt that the situation needs remedial action.
In this respect some measures have been embarked upon, among them the improving of tax administration and curtailing of recurrent expenditure to generate greater savings on the current account. The Administration would also seek to reduce the capital budget significantly, focusing on critical and self-liquidating projects, and to reduce interest cost by renegotiating the maturity and interest rates on existing loans.
The Assembly was adjourned to 10:00 a.m. Wednesday to allow for discussion on the budget address by members of the Assembly.
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