Parliament approves Supplementary Budget

THE SUM of $136.4 million has been approved for the government of St Vincent and the Grenadines to spend in the immediate aftermath of the passage of Hurricane Beryl which left a trail of death and destruction across the state on July 1, 2024.

This money represents the total sum of the Supplementary Estimates 2024, which was passed during a meeting of the House of Assembly on Thursday July 18, 2024.

The Estimates were laid in the House by Minister of Finance and Economic Planning, Camillo Gonsalves.

In presenting the Estimates, minister Gonsalves said these Estimates are about $20 million more than the last Supplementary Estimates which were passed in Parliament in 2021 that amounted to $117 million.That money was for expenditure in the immediate aftermath of the 2021 volcanic eruptions.

Gonsalves said the Supplementary Estimates will be financed from various sources, the largest source being the government’s Contingency Fund which was established by the current administration in 2017.

He said $50 million of the total sum, will come from the Contingency Fund.

“As was the case in COVID, and as was the case in the volcanic eruptions, our Contingency Fund is proving its worth when St Vincent and the Grenadines is at its lowest point in the immediate aftermath of a disaster.”

The finance minister recalled that prior to the establishment of this fund, government did not have immediate access to money to even do basic things after a natural disaster.

Money in the Estimates is also coming from the government of Taiwan, the Caribbean Catastrophic Risk Insurance Facility, and many bilateral and multilateral donors.

The minister thanked Taiwan for the US $5 million which was donated to the Government of St Vincent and the Grenadines immediately after the passage of the category 4 hurricane.

Minister Gonsalves outlined that clean up is among the major initiative in the Supplementary Estimates.

A $23 million allocation subvention will be put to BRAGSA to do clean up of the debris left behind in Hurricane Beryl’s wake.

Additionally, there is also a $6 million allocation to do road clean up, which will be a modified version of the regular road clean up.

This $29 million represents 21% of the Supplementary Estimates, to clean up the mess caused by Hurricane Beryl.

There are also allocations in the Estimates for construction and land purchase for persons who were displaced by the hurricane.

The measures also include an aggregate purchase element for the planned period of intense construction and reconstruction.

The finance minister explained that 29% of the package is for money to begin reconstruction.

He stressed that the Supplementary Estimates will not be adequate to build back everything that was destroyed by hurricane Beryl.

In a statement in Parliament on Thursday, Prime Minister Dr Ralph Gonsalves quoted figures from the regional disaster response agency, CEDEMA which shows that the sum of $335 million is needed just for housing alone.

Speaking about the extent of damage to housing infrastructure, Minister Gonsalves said ”there are some people who may just need a few sheets of galvanize, or small repairs to their homes…there are some people who will need an entirely new house.”

The Supplementary Estimates also contain $12 million in income support for farmers and fishers, and $8 million in income support for hospitality workers, particularly in the Grenadines.

Stating that “we have to confront our challenges as we face them,” minister Gonsalves also spoke of a $13.5 million which will be spent to reconstruct public buildings such as schools, police stations and health clinics.

With over one thousand persons still in shelters, and an estimated five thousand staying with relatives or friends, the sum of $12 million has been set aside in the Supplementary Estimates to feed evacuees.

There is also a further $2 million which will be used to supply food boxes to the needy.

As part of the recovery efforts, minister Gonsalves said government intends to repair the old teachers college, to house students from the Grenadines who were displaced.

An additional $3 million is also set aside to pay for accommodation for children and one parent who were displaced.

The Ministry of Social Development will also gets $2.5 million to assist the vulnerable.

Jetties and wharves will also be rehabilitated in the sum of $3.5 million, and $1.4 million will be used to pay for ferry service for travel to the Grenadines.

Admitting that Hurricane Beryl has put us in a vulnerable position, the finance Minister gave the assurance that government loves and cares for everyone who was affected by the hurricane.