Got TIPS or BREAKING NEWS? Please call 1-284-442-8000 direct/can also WhatsApp same number or Email ALL news to:newsvino@outlook.com;                               ads call 1-284-440-6666

Money talks! NDP Gov’t presents hour long $299,526,366 Budget for 2018

Premier and Minister of Finance Dr The Honourable D. Orlando Smith (AL) presented a $299.5M Budget in the House of Assembly today, March 19, 2018. Photo: VINO/File
Capital expenditure, which will be focused on recovery projects, is estimated at $51.7M. Photo: VINO/File
Capital expenditure, which will be focused on recovery projects, is estimated at $51.7M. Photo: VINO/File
ROAD TOWN, Tortola, VI- In an hour long presentation, littered with the usual rhetoric and promises that often never see the light of day, Premier and Minister of Finance Dr The Honourable D. Orlando Smith (AL) presented a $299.5M Budget in the House of Assembly today, March 19, 2018.

The 2018 Budget, which not surprisingly is below the 2017 Budget, is $299,526,366 and represents a 7.3% decrease from last year’s.

Premier Smith, emphasising that Government must have value for money for the people of the Territory, said the total recurrent expenditure is projected at $335, 391,200.

Capital expenditure, which will be focused on recovery projects, is estimated at $51.7M.

A significant portion of this expenditure will be spent on projects funded by the acquired Reconstruction and Rehabilitation Loans from the Caribbean Development Bank, aimed primarily at the rebuilding of schools, roads and water and sewerage infrastructure in the coming months.”

More details to follow.

16 Responses to “Money talks! NDP Gov’t presents hour long $299,526,366 Budget for 2018”

  • 123 (19/03/2018, 14:01) Like (9) Dislike (1) Reply
    it was an angry speech picking fights
  • Oh My (19/03/2018, 14:49) Like (8) Dislike (0) Reply
    Lord send help. We are in trouble and as usual this man is sugar coating it.
  • Just Woke.. (19/03/2018, 17:29) Like (7) Dislike (5) Reply
    I'm just going with the flow. Not much to say no more. NDP in Power them and their cronies benefit. VIP in power they and their cronies benefit.. Im none of their cronies. Still have to work hard check to check and stay poor.. So I say no more..
  • Another Chance (19/03/2018, 17:44) Like (3) Dislike (15) Reply
    Give the good Doc another chance. He has realize his mistakes and is ready to lead.
    • doc (19/03/2018, 18:31) Like (10) Dislike (0) Reply
      No way Jose. You got to be crazy. Guy don't even run his home.
    • Get from here (19/03/2018, 18:45) Like (7) Dislike (0) Reply
      An other chance wey we the younger GEN going stand for our rights n vote them jokers out it is our time ayo days done
      • tretretrete (19/03/2018, 20:14) Like (2) Dislike (5) Reply
        And it was your generation who put them in there? Lol. Don’t always believe the hype.
  • Been woke (19/03/2018, 18:51) Like (4) Dislike (0) Reply
    Yeah cause we choose to stay here with all the stupidity we who place the X we put them in we going say what we want n enough of watching them n they doing nothing for us stand don't be scared rawttt um pull um up show them we not standing for the bull cause I ain't
  • E. Leonard (19/03/2018, 19:54) Like (10) Dislike (0) Reply
    Hurricanes Irma and Maria in Sep 2017 decimated thousands of residential properties, as well as businesses and public facilities, and the economy, reducing government revenue and GDP so it is not surprising that projected government revenues will be down for fiscal year 2018. However, based on the Premier’s budget presentation, projected revenues will be approx $299M (down 7.3% from fiscal year 2017—-$23M—-with projected expenditures estimated at $353M(up 14.4%—-$45M). This is an approx deficit of $54M, adding to the growing national debt.

    Clearly, government cannot spend money it does not have so how will the $54M deficit be made up? Is government estimating that it will take in significantly more revenue than projected? Will government have to borrow the $54M to make up the delta? Will the delta come from unreserved funds? Will a mid-year budget review be conducted and adjustments made as needed? Will vertical/horizontal cuts be initiated and if so what programmes/functions will be on the chopping block? Why government did not submit a balanced 3918 fiscal budget (expenditures=revenues)?

    Moreover, in another commentary, the indications were that there wouldn’t be any tax increases for fiscal year 2018. This is welcome news for struggling residents in the wake of the hurricane disasters. The lion share of government revenue comes from taxes and fees so it is surprising given the need for more revenue for the recovery effort that taxes would not have been increased, if only nominally. Nonetheless, I will take a guess and assume that government is sacrificing revenues to promote more robust economic growth. At a certain overall tax level relative to GDP, revenue can be maximize but at growth expense.
  • Political Observer (PO) (20/03/2018, 05:27) Like (8) Dislike (0) Reply
    Highly surprised that the calendar year 2018 budget is down less than 8% from the 2017 budget. The ravaging Cat 5 hurricanes, Irmaria, definitely had an adverse and painful impact on the service economy (tourism and financial services), employment, Gross Domestic Product (GDP) and government revenue. Thus, is the 2018 budget projection too optimistic?

    Further, there appears to be a big disconnect between revenues and expenditures in the proposed 2018 budget. The projected revenues are $299,000,000.00 yet the proposed expenditures are $353, 000,0000.00 This equates to a deficit of $54,000,000.00. The big question is how will the $54, 000,000.00 deficit be adddress? Will government have to borrow $54,000,000.00 to make up the deficit? Deficit spending increases the national debt and this deficit will thrust and project the national debt upwards towards approximately $200, 000, 000.00. This number does not include the $721,000, 000.00 proposed 5-year hurricane recovery cost. Let’s not forget that the estimated recovery cost is $3, 600, 000, 000.00.

    Moreover, the territory has to incur a mountain of debt to recover from the devastating hurricanes and grow the economy, sustaining the standard of living and quality of life. Nonetheless, revenue streams need to be identified to pay back the incurred debt. Taxes and fees will have to be increased to pay back the loans.

    We must anticipate, expect and embrace this reality. There may not be a tax increase in 2018 but there will be in the following years; the BVI has no other means to fund the required borrowing. There will be no gain without the pain. It is a double body slam for BVI residents; they were blasted by the decimating hurricanes and now/future they have to incur and endure increase taxes to pay for the damages.

    The coming months or years will be a huge challenge for the VI/BVI yet a grand once in a life time opportunity to rebuild for the future, for the next generations of Virgin Islanders. We have to plan, programme, budget.........etc to rebuild effectively with positive, long-term, long lasting outcomes. With this opportunity, we must realize/show value for money. Leh ve du dis ting rite mehson!
  • Government Workers (20/03/2018, 06:46) Like (3) Dislike (0) Reply
    Be careful what you blog. Government has access to bloggs and the the bloggers proper names...Just saying.. Victimization is real. Bloggs and bloggers ture identity are not 100% confidential..
    • doc (20/03/2018, 11:34) Like (1) Dislike (0) Reply
      That's the problem. We as government workers should know that there is dishonest work going on in the handling of contracts constantly; and should be silent.

      This is why the country is in turmoil. If I'm in power, I should hear the concern of the people negative or positive, and thenow make my decision after that.
  • Hindsight (20/03/2018, 09:12) Like (2) Dislike (0) Reply
    Alright Mr hindsight premier. And exactly how much is being budgeted in case we have another catastrophic hurricane season, which starts in less than 3 months? Spending money on unconstitutionally set up bodies and still ain't learn to put aside for future disasters. Lord send help!
  • Ghost (20/03/2018, 09:53) Like (4) Dislike (0) Reply
    all the money gone in ndp bank
  • Sawda (20/03/2018, 10:11) Like (6) Dislike (0) Reply
    What a Doctor knows about Finances?How can so much Educated Senators let this man lead them?How long will it take them to see we already on the Horse Shoe Reef?He gave away 8 million$ with no justification and the House of Assembly still flowing this man..Premier will have to answer for that $$ before any sensible Senator vote on anything again..Shame on them if they follow him again..


Create a comment


Create a comment

Disclaimer: Virgin Islands News Online (VINO) welcomes your thoughts, feedback, views, bloggs and opinions. However, by posting a blogg you are agreeing to post comments or bloggs that are relevant to the topic, and that are not defamatory, liable, obscene, racist, abusive, sexist, anti-Semitic, threatening, hateful or an invasion of privacy. Violators may be excluded permanently from making contributions. Please view our declaimer above this article. We thank you in advance for complying with VINO's policy.

Follow Us On

Disclaimer: All comments posted on Virgin Islands News Online (VINO) are the sole views and opinions of the commentators and or bloggers and do not in anyway represent the views and opinions of the Board of Directors, Management and Staff of Virgin Islands News Online and its parent company.