BVI 2004 budget address - "Empowering Our People"

Wednesday, December 24, 2003

ROAD TOWN, BVI: The British Virgin Islands Minister for Finance and Economic Development Mr Ronnie Skelton presented the Government's budget for fiscal year 2004 under the theme "Empowering Our People" on Monday.

Addressing the Legislative Council, Minister Skelton said that the draft Budget Estimates anticipated revenue collection for the fiscal year 2004 of $198,443,000.

He said that the expenditure to cover the recurrent operations for the Government for 2004 is estimated at $186,562,500.

Minister Skelton said that the draft Budget therefore estimates a recurrent surplus of $11,880,500.

According to Minister Skelton, Government intends to contribute $9,586,700 to the Capital Fund to assist in financing the Capital Budget for 2004.

The Minister added that $1,193,800 will be an initial contribution to the Reserve Fund which will be systematically build up over the next three years to serve as a cushion or temporary safety net in the event of adverse shocks to the economy.

One million dollars is to be contributed to the Emergency Disaster Fund to facilitate quick access relief financing in the event of natural or manmade disasters.

Some of the programmes and policies on the priority list reflected in the Budget are Education ($46.7M), Health and Welfare ($37.3M) and Youth Development ($1.02M).

In the area of Natural Resources, Minister Skelton pointed out that Government will purchase new lands for the Home Ownership Programme, assist farmers and fishermen, provide funds for a new Poultry Processing Unit and complete a new Nursery at Paraquita Bay. The Government intends to embark on fishermen training with a view towards developing the pelagic Fishing Industry.

Minister Skelton said that $10,000,000 will be contributed to the Tourist Board to provide it with resources to launch its aggressive plan for taking the tourism sector to the next level.

The Minister of Finance said efforts to diversify the Territory's financial services sector offerings and to enhance the attractiveness to BVI as a Financial Services Centre will be intensified during the course of the year. The Financial Services Commission will utilize approaches such as surveys - consultative papers, aide memoirs, and the like to establish a robust consultative programme on legislation and policy initiatives.

The Minister for Finance said that the Government is proposing to lift the ceiling of tax-exempt income from $3,000 per annum to $7,500. Under the Income Tax (Amendment) Bill all persons subject to income tax will be granted an exemption on the first $7,500 earned per annum beginning January 1, 2004. 

Minister Skelton said that another priority of the Government is the rehabilitation of Road Town. There is a planned programme to complete parking lots, develop roads to allow for better traffic flow, beautify the town, construct sidewalks and to make Road Town the capital it should be.

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