B.V.I. Monday, February 16 – Premier and Minister for Finance Honourable Ralph T. O’Neal, OBE has announced February 26 as Budget Day for the Territory.
The Premier made the announcement to members of the local media this morning at a Ministerial Press Conference.
On Budget Day, the Premier in his capacity as Minister for Finance will outline Government’s Estimates of Revenue and Expenditure for 2009.
Having previously hinted at the need for belt-tightening in light of the global economic downturn, Honourable O’Neal revealed today that Government departments are being asked to reduce their recurrent expenditure by 3%.
He also identified some of the areas that will be considered for cost cutting. “Areas like travelling will be looked into, use of motor vehicles, telephones,” the Premier stated, adding “I believe the Finance Committee of the House of Assembly will be taking a good look at expenditure on the whole.”
He further stated that it will not be possible to reveal the recommendations on Budget Day because the hearings will be held after.
Once delivered, the Territory’s budget will be debated in the House of Assembly and needs to be passed by April 30, 2009 which marks the end of the provisional period. Section 105 of The Virgin Islands Constitutional Order 2007 provides for a provisional period in the absence of an approved budget during which up to one-third of previous year’s budget can be expended in the current financial year.
In the 2008 estimates, Government projected revenue of $284 million. Responding to questions about a predicted shortfall, the Premier said the final figures are still outstanding.
The Premier addressed several other issues at his Ministerial Press Conference including tourism related matters.
On this subject, Honourable O’Neal who also functions as the Minister for Tourism was questioned about the impact of the global downturn on the tourism industry. To this, the Premier responded that local hoteliers are reporting a general decline in the number of stay-over visitors.
“In terms of stay-overs, the figures I am getting from when I speak to various hoteliers, some would say about 30%, some say 25%,” the Premier stated.
He also confirmed that the BVI Tourist Board will make attempts this year to tap into previously untapped markets including South America as the Territory tries to boost visitor arrivals and to diversify source markets.
Honourable O’Neal said this is even more important given the increasing level of competition worldwide and he expressed confidence in the ability of the newly appointed board to achieve this.
“Cuba is opening up; it is getting more competitive in the Caribbean; you are getting more competition throughout the world so the new board has a lot to do, to tell people and to demonstrate to people that it is best to come to the BVI.”
Through monthly ministerial press conferences, the Premier expects to keep the local media abreast of a range of issues, particularly the subjects which fall within his portfolio.
British Virgin Islands News