Budget for 2009: $138 Million EC Dollars
3rd April, 2009The Honorable Chief Minister and Minister of Finance, Dr. Lowell Lewis confirmed that the 138 million Eastern Caribbean Dollars (ECD) is an overall decrease in funding by four million dollars or 2% from $142 million in 2008 during his budget presentation themed “Maintaining Financial Stability in the Face of Global Economic Turmoil” at the Disaster Management Coordination Agency (DMCA) on Thursday, March 26.
Dr. Lewis asserted that the reduction in funding is due to the general global economic and financial crisis.
The Ministry of Finance estimates that the recurrent revenue and grants will be approximately $95 million, down from a revised estimate of $100 million in 2008.
He says revenue generated from local sources is expected to reach $43 miillion which is 2% higher than last year and takes account of modest increases in economic activity due to implementation of a number of housing solutions and the establishment of a project implementation unit to fast track projects.
Dr. Lewis said the short fall is due to the depreciation of the pound sterling by approximately 27% from $5.25 to $3.80, the £10.6 million approved for budgetary aid fell from about $56 million to just about $40 million creating a gap of $15 million.
In an effort to diminish the effect of this shortfall on many of the major programs planned, he says the Government agreed to transfer seven million dollars from the capital development budget and scale back on essential but non-critical programmes of expenditure to fit the funding available.
He says $80 million was allocated for the programs of various Government Ministries and Departments.
Dr. Lewis also disclosed that the development budget for 2009 is $43 million, with the majority expected to be spent on infrastructural development in the amount of about $27M.
The other Government Ministers expressed their full support of the budget outlined by Dr. Lewis and released their own plans and programmes for their various Ministries for 2009/2010.
They are Minister of Communication and Works, the Honourable Charles Kirnon, Minister of Economic Development, Trade, Agriculture, Lands, Housing and the Environment, the Honourable Rueben Meade and the Minister of Health, Education and Community Services the Honourable Roselyn Cassell-Sealy.