Update: $323M Budget Announced; More Fees

Cautioning residents that there are challenging times ahead, Premier and Finance Minister, Hon. Dr. D. Orlando Smith announced a budget of $323M for the financial year of 2017, representing a reduction in revenue forecast.

During his budget address today, Monday, January 16 in the House of Assembly, the Premier also announced additional fees in different areas, including cruising permits, water, environment levy, telecommunications and transportation maintenance, to help raise revenues.

Premier Smith in his 1 hour and 20 minutes address, said that they anticipate bringing in some $323M in revenue, with recurrent expenditure in the region of $277M. The 2016 budget was $330M.

The budget address was delivered under the theme,‘Charting Our Course: Positioning the Virgin Islands for the Future’, and the Finance Minister placed major focus on the controversial T.B. Lettsome International Airport, which government is hoping will help with the economy once it takes off.

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Budget 2017

(PLTM) - He noted that government further projects a contribution of $12.5M to the Reserve Fund and they intend to utilize $26M in debt financing to further promote their infrastructure programme.

In relation to revenue generation, Premier Smith noted that they need to critically create a balance in revenues through taxation and other measures.

"We have been very careful to identify a few areas that we believe can sustain increases. Therefore, revenue target, we have devised a fiscal plan from what we embarked on last year."

Describing the increases as modest, Premier Smith mentioned cruising permits which will generate an additional $1.9M in revenues this year, and transportation maintenance fee, which will be a small fee charge when licensing vehicles. "This will be implemented to assist in offsetting the cost of maintaining our roads of $170,000 (to be generated from this in 2017)."

He also spoke to the telecommunications royalties which will be implemented as soon as government can finalize discussions with the Telecommunications Regulatory Commission (TRC).

"And the telecommunications sector here in the BVI, this is projected to produce about $2.5M."

There is also the environmental levy fee which will be collected at the port of entry and is projected to bring in $1.5M.

"Improved water billing, improved water meters---$3.6M in 2017."

The Premier also mentioned capital investments which include continuing to improve water and sewerage infrastructure; completing the medical centre on Virgin Gorda; airport project; medical tourism; and improvement in the education sector.

Premier Smith noted that the budget is very important for many reasons, as it comes against the backdrop of the global changes, Brexit and significant pressure in the financial services sector.

He said that it is important for residents to understand what it means to govern under a modern BVI with the many challenges, pointing out his government's commitment to moving the Territory forward despite operating under a world of uncertainties.

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