VI Gov’t takes steps toward public debt reform with self-assessment
Acting Deputy Financial Secretary in the Ministry of Finance Dr Drexel M. Glasgow said the objective of the assessment was to identify core strengths and areas for improvement for further technical assistance over the next five years.
“This assessment will not only be instrumental in evaluating the Territory’s debt management practices but also identify areas for improvement, along with other recommendations. The analysis from the report will be a core document guiding any reforms in debt management.”
He said the programme of reform will help strengthen capacity and institutions to help the [British] Virgin Islands manage its public debt effectively and sustainably.
Dr Glasgow added that following the submission of the assessment, the Commonwealth Secretariat will develop a five-year programme to facilitate the implementation of the measures identified by the Virgin Islands Government, commencing an aggressive approach to reform informed by the recommendations in the [British] Virgin Islands Commission of Inquiry Report since 2022.
Gov't requested assistance for self-assessment
It is in line with this reform that the Government requested assistance from the Commonwealth Secretariat to undertake a Debt Management Performance Self-Assessment of the Territory.
Adviser and Acting Head of the Debt Management Unit of the Commonwealth Secretariat Mr Mac Banda said this public debt assessment forms part of a longstanding relationship with the Ministry of Finance of the Government of the Virgin Islands.
Mr Banda said, “In [the] recent past, our DMU has offered extensive technical assistance, capacity-building support, and advice on debt management systems to the BVI. This includes our flagship tool, Commonwealth Meridian, which the BVI has been using for public debt management. I am pleased that the Ministry of Finance has chosen to partner with the Commonwealth Secretariat on this new journey, which will undoubtedly impact not only the economy but the lives of people in the British Virgin Islands.”
The assessment was jointly led by Policy Analyst in the Macro-Fiscal Unit, Michele Richmond-Phillips and Debt Management Adviser at the Commonwealth Secretariat, assigned to the Caribbean, Delia Cox. Discussions were held with several departments and teams throughout central government, statutory bodies, and the private sector, to ensure that the assessment captured the country’s unique context and to ensure that the programme of support was tailored and effective.
The team also met with Premier and Minister of Finance Dr the Honourable Natalio D. Wheatley (R7) to discuss some preliminary findings of the assessment.
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5 Responses to “VI Gov’t takes steps toward public debt reform with self-assessment”
Government must identify the type of spending, ie, a) mandatory spending with inclusive elements. Mandatory spending can be classed as above the line spending. It may include retirees compensation, interest on debt, etc., b) Discretionary spending. This type of spending has to be made by and prioritized by HoA. Ministers, department heads, division directors, HoA, etc must know their budgets. HoA members must know more about the budget than casting a vote. The Ministry of Finance should conduct budget work shops for HoA members. Department heads should have shelf ready contingency plans for unplanned budget cuts due to revenue short falls.