$13M for capital projects will affect sluggish economy – Christopher
“I applaud the Premier for the budget, but his attempts to have $15M in the reserve fund by the end of the year when he only has $13M for development fund/capital projects will have a further negative impact on a sluggish economy,” Hon. Christopher said in an exclusive interview with Virgin Islands News Online last evening, January 17, 2012.
Earlier in the day, Premier Dr. D. Orlando Smith, OBE had delivered his budget speech where he announced that the operational expenditure for the fiscal year is projected to be $258,472,000 against revenues that are projected to be $287,472,000. This year’s budget theme is “Austerity today secures economic recovery tomorrow".
The Premier, who is also the Finance Minister, had also announced his intention to have $100M in the reserve fund by 2015, with $15M to be allocated for this fiscal year.
However, while the 2nd district representative said the budget is a survivable one until “we can see better days”, added that during the Standing Finance Committee stage he will observe closely to see if heads of departments can manage with $13M.
He disclosed that between $5 and $6M is currently in the reserve fund, which was the Virgin Islands’ cushion for many years in keeping the Territory afloat as was revealed in the Auditor General’s report. Albeit the grim situation, he is proposing that the development fund be increased by Government.
“I understand what the Premier wants to do in terms of building back the reserve fund. He is attempting to meet the required stipulation by the United Kingdom Government, which is for the VI to have three months operational expenditure that is between $60 and $70M,” Hon. Christopher explained. “But I hope he can review that so that capital works that are still outstanding can be completed.”
Meanwhile, an aspect of the budget that impressed Hon. Christopher is that special legislation will be enforced so that the entire House of Assembly, instead of only the Finance Minister, will have a say on “how the reserve fund is operated and spent”.
On January 26, 2012 the HOA will begin going through the address with a fine tooth comb.
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