Prime Minister Allen Chastanet said that in order to finance the 2021-2022 Budget, total revenue and grants is projected at $1.119 billion representing an increase of 23 percent or $211.2 million above the preliminary outturn for the fiscal year 2020-2021.
“Of the total amount estimated for the year, a sum of $117.8 million is attributed to the projected increase in recurrent revenue. Noteworthy, is that grant receipts are projected to contribute an additional $89.7 million, over the projected outturn for 2020-2021 and $14.3 million above the approved estimates for 2020-2021. This significant increase is primarily due to major progress made, over the last 2 years, towards the procurement process for two major grant financed projects, and the commencement of at least one of these projects. Total resources for the fiscal year 2021-2022 comprises of domestic resources (current and capital revenue) of $998.2 million and external grants of $121.3 million,” the Prime Minister said.
Chastanet said that given the continued uncertainty as to when and how robust the recovery of the country will be, the Budget for the fiscal year 2021-2022 forecasts a modest improvement in revenue growth along with a much reduced capital works programme. The Budget proposes expenditure amounting to $1.639 billion inclusive of refunds of $9.5 million and principal repayment of $125.8 million.
“At this level, the Budget targets a Primary Deficit of 4.3 percent of GDP,” Chastanet said.
According to him total expenditure, excluding refunds and principal repayments, is estimated at $1.503 billion, while total revenue and grants is projected at $1.119 billion.
“When taken together, this results in the projected Overall Deficit of $383.79 million, equivalent to 7.9 percent of GDP – a result of both the economic shocks emanating from COVID-19 and the increased expenditure (on the current side) required to combat COVID-19,” the Prime Minister said.