The debate for the 3rd budget in 20 months for the Virgin Islands Party (VIP) Government led by Premier and Minister of Finance, Hon Andrew A. Fahie (R1) begins in the House of Assembly (HoA) on Monday, December 14, 2020. Photo: GIS/File

It was on December 12, 2020, that Premier and Minister of Finance, Hon Andrew A. Fahie (R1) announced a national budget for 2021 of $402,123,046 for the Virgin Islands. Photo: GIS/File

It was on December 12, 2020, that Premier Fahie announced a national budget for 2021 of $402,123,046 for the Virgin Islands.

The budget address was made under the theme, ‘INNOVATION: Building a stable, diverse, competitive economy with strong industries and partnerships for regional and international trade, by building and harnessing the creative capacity of our human capital’.

The Budget

According to the Leader of Government Business, the technical experts in the Ministry of Finance are projecting estimated revenues for Government in the sum of $332.3M.

He said $309.9M will be coming from taxes and $20.4M from other revenue sources.

Recurrent expenditure is estimated at $325.2M with employee compensation accounting for some $122.6M, $79.4M allocated for goods and services, $77.4M for various grants, and $18.6M for social benefits.

Other expenditures include $9.6M in grants to the BVI Tourist Board, $9.02M to the H. Lavity Stoutt Community College (HLSCC), $3M for foreign scholarships and $62,000 for domestic scholarships and $1M in grant funding to the BVI Health Services Authority (BVIHSA).

Premier Fahie said a recurrent surplus of $5.2M has been projected.

Capital expenditure of $62.53M, Premier Fahie said, is being targeted.

He said this will be funded by $21.1M in loan funds from Caribbean Development Bank (CDB) and Reconstruction and Rehabilitation Loan (RRL) and $35.4M from the Consolidated Fund, as well as insurance proceeds among other sources of funding.

A further $12.5M has been allocated for debt servicing.

According to the Premier, an overall deficit of $69.8M is being projected largely from capital projects but this will be funded through a $34.7M drawing from the Consolidated Fund capital expenses.

Watch the Budget Debate Live

The HoA sitting on December 14, 2020, will be held at the Save the Seed Energy Centre in Duff’s Bottom from 10:00am.

The proceedings will be carried live on CBN Radio 90.9 FM, CBN-Television Channel 101 on Flow TV and can also be followed on the HoA YouTube channel and online at www.cbnvirginislands.com.