Reprinted from Caribbean Net News
caribbeannetnews.com

Heated debate expected on Grenada budget
12-19-2006

ST GEORGE'S, Grenada: The Grenada parliament is expected to see some heated debate on the 2007 budget, presented by the Finance Minister Anthony Boatswain last Friday.

The 2007 estimate of expenditure provides for a total expenditure (including amortization) of EC$632.5 million, distributed as follows: current expenditure $350.7 million, capital expenditure $225.5 million and amortisation $56.3 million.

"The performance of the domestic economy in 2006 was influenced primarily by developments in the major industrial economies to which the economy is linked. An increase in global output by 5.1 percent and relatively high rates of inflation, fueled mainly by the high price of oil particularly during the earlier part of the year," said Minister Boatswain.

He said the preliminary data show that in 2006, the economy of Grenada recorded positive real growth of 1.3 per cent compared to an unsustained rate of 12.1 percent recorded in the previous year.

All the major productive and services sectors of the economy have shown signs of recovery and are contributing to this growth; agriculture sector grew by 20.5 percent in 2006 following a decline of 38.1 in the previous year, and reflected increased production of crops, livestock, forestry and fishing.

The Finance Minister went on to add that the outlay for 2007 is only 3.4 percent higher than the EC$611.7 million budgeted for last year, as the economy moves from a reconstruction stage to one of stabilization and consolidation For the fiscal year 2007, current revenue is budgeted at EC$411.1 million, approximately 9.9 percent higher than the budgeted figure of 2006. This growth is largely due to measures contemplated in the Inland Revenue and customs department to improve administration of tax collection.

Current expenditure is budgeted at EC$350.7 million, approximately 6.9 percent above the budgeted figure of the previous year. The rise in current expenditure is largely explained by higher anticipated outlays on wages and salaries, interest payments and current transfers.

This year’s budget was presented under the theme. "Consolidating Growth, enhancing revenue and providing safety nets for the vulnerable".