Government pensioners and other beneficiaries attached to the National Insurance Corporation (NIC) are in for some extra income.
At this week’s Budget Debate, Prime Minister Philip J Pierre recalled that last November, government disbursed a one-time payment of $600.00 to approximately 3,000 government pensioners. The allotted funds amounted to $1.7 million, in addition to a $500.00 payment in November 2022, amounting to $1.4 million.
The prime minister said in December 2023, the authorities began providing income support payments of $1500.00 per person to 5,000 households and informal sector workers who were adversely affected by the COVID-19 pandemic.
“This will continue into the new year with XCD$ 5 million set aside for that programme,” PM Pierre told legislators at Tuesday’s parliamentary sitting.
Noting that the administration is cognizant of government pensioners and other pensioners who currently earn $300.00 monthly, he stated: “Effective August 1, 2024, the minimum pensions payable to government pensioners will be increased to $725.00.
“Government pension payments in the future will be linked to union-agreed negotiated salary increases for civil servants but not beyond the covered period of those negotiated settlements.”
PM Pierre further disclosed that the NIC after consulting its actuaries “decided to increase its minimum pension to $500 per month. About 2,400 pensioners will benefit from this increase effective from 1st August 2024.”
He stressed: “This means … that from 1st August, 2024, no government or NIC pensioner in this country will receive less than $500 per month.”
The Finance Minister also reported that in 2023, the government paid over $20 million in tax refunds to taxpayers.
In April 2023, he noted, “we extended the 100% waiver on interest and penalties for individuals and businesses on all taxes, including VAT and withholding tax, provided that those taxes were settled in full by May 1, 2024.”
Additionally, he said, government have exempted 10% of taxes on small contracts up to $10,000.00 “to provide more disposable income for small contractors.”
Pierre noted, “After inheriting payables of $160 million due to local businesses, the government settled 50% of those payables, effectively injecting $80 million into the local business sector.”
He said that in an effort to combat imported inflation the government continues to subsidise the 20 and 22 lbs cooking gas at an average of $15.00 per cylinder, which amounted to $8.1 million during 2023 and $13.4 million in 2022.
“Throughout 2023, the government heavily subsidised the price of flour, sugar and rice, amounting to $11.5 million. In 2022, the subsidy on flour alone was $8.9 million, of which $5.6 million went to bakers and $3.3 million went to the public,” the finance minister explained.
He said government removed the 6% Service Charge on price-controlled products. Also, VAT charges were removed on sanitary products for women and those products were placed under the price-controlled list of items.
Referring to prices, Pierre said domestic inflation is expected to lower to around 2 to 2.5 % in 2024.
“In the absence of any increase in geo-political risks, oil prices are expected to dip modestly in 2024 on account of the economic slowdown in the US and China,” he noted. “However, in the last quarter of the fiscal year 2023/24, crude oil prices inched up by 0.9 % over the same period in 2023/2024.”
The prime minister added that barring any further external shocks, “domestic inflation is anticipated to gradually lessen in 2024 and 2025, settling at about 1.5 % per annum over the medium term.”
While citing the economic hardships borne by citizens, generally, PM Pierre disclosed there will be some form of Housing Relief for Public Servants.
“Public servants will be entitled to 100% residential mortgages under the US$ 20 million Republic of China on Taiwan EXIM Bank’s new credit line facility being managed by the Saint Lucia Development Bank,” he explained.
In addition, he said, the government “will assist every successful applicant with a $1000 payment towards their legal cost.”