Target of $6,730,000 in revenue from fiscal measures for 2024

This year, the government of St Vincent and the Grenadines is hoping to yield $6,730,000 more in revenue from fiscal measures which are included in the 2024 National Budget.

In his Budget presentation on Monday, January 8, Minister of Finance, Camillo Gonsalves said this year’s fiscal measures are aimed at “enhancing revenue collection.”

According to the minister, Budget 2024 has a total resource requirement of $1.62 billion.

This represents an 11.8% increase over the 2023 Budget.

The Current Expenditure for this year is $835.4 million, which represents an 8.3% increase.

This year’s Budget also consists of Amortization and Sinking Fund contributions of $210.6 million, and Capital Outlays of $570.5 million.

Current Revenue is projected at $810.9 million, while Capital Receipts are $805.6 million.

Capital Expenditure is expected to increase by 30%, while there will be a 6.5% increase in Current Revenue.

The Finance Minister further revealed that “taken at a glance, Budget 2024 has a Current Deficit of $24.6 million, and an Overall Deficit of $532.2 million”.

Minister Gonsalves explained that this year’s fiscal measures are “designed to adjust user fees and licences to keep pace with the cost of providing the various associated services; and to introduce new user fees where new services have emerged.”

This year’s fiscal measures include an increase in drivers licences which were last reviewed in 2016.

The minister stated that these increases are expected to yield $2 million.

A further $4.5 million is also expected to come from increases in motor vehicle licences, which were last reviewed in 2016.

This year, these fees will be increased for all class of motor vehicles.

Since the minister’s announcement of these increases on Monday night, members of the public have been expressing concerns about the ‘sharp increases’.

However, in his wrap up of the 2024 Budget debate on Wednesday, the finance minister sought to clarify these issues, which he said we’re caused by an error in one of the columns in the budget document.

Minister Gonsalves refuted reports that these fees have been increased by as much as 25%.

“There have been some errors and there have been some misunderstanding about what is in the Budget,” the minister admitted on Wednesday.

He added that it is not correct to say that these fees have been increased by 25%.

“The increases have been far more modest,” he assured.

The finance minister insisted that the increases in motor vehicles and drivers licenses “are not as large as has been reported.”

Gonsalves explained that the increased fee for private motor vehicles is $45 and not $100 as is being reported.

This fee has moved from $455 to $500, Gonsalves said.

While saying that many of the increases are modest, the minister admitted to a significant increase in fees for large trucks and trailers.

There will also be increases in fees charged by the Electrical Inspectorate. These fees are expected to increase government revenue by $250,000.

There will also be an increase in the Airport Service Charge, which will move from US $40 to US $55. This fee is payable on all airline tickets and is expected to yield $6.6 million in revenue when it takes effect from May 1.

In terms of debt, minister Gonsalves said the country’s largest creditor is the World Bank, to whom SVG owes $605 million.

There are also other loans with various institutions totalling $894 million.