PM Skerrit & Financial Secretary cleared misconceptions about Fiscal Responsibility Framework Act

The Prime Minister of the Commonwealth of Dominica - Roosevelt Skerrit, invited the Financial Secretary - Denise Edwards, in Annou Pale on Sunday, to discuss on the fiscal responsibility framework, which is soon to be brought in front of the parliament.

Dominica: The Prime Minister of the Commonwealth of Dominica – Roosevelt Skerrit, invited the Financial Secretary – Denise Edwards, in Annou Pale on Sunday, to discuss on the fiscal responsibility framework, which is soon to be brought in front of the parliament.

On clearing the misconceptions regarding the intent of the Fiscal Framework Act 2021, Edwards informed that the purpose of this act is to establish a framework via which the Dominica government would manage its financial and fiscal affairs & parameters by which the government would operate to build fiscal resilience.

Following the statement, the financial secretary further informed that the reason behind composing this act was to make sure that the currency remains stable in tough times, as Dominica’s economy has been hit by several wrecks such as – natural disasters and now in the time of the COVID-19 pandemic.

She then noted that the government of Grenada and St Vincent and the Grenadines have already implemented this act.

The financial secretary cited that the governments’ step to implement transparency in the act would help the public to be aware and monitor governments’ compliance.

She added that this act would set a target of 60 % by 2035, would ensure that the primary balance gets to 2.5% by 2026 and set a ceiling expenditure at 2 %, which would assist the government in reducing its debt and also make sure that the economy grows.

The financial secretary cited that the international airport agreement and various other agreements would generate jobs for the citizens. PM Skerrit asserted that 90% of GDP had been affected by Hurricane Erica, Hurricane Maria and the current ongoing COVID-19 pandemic.

PM Skerrit asserted that it would make it easy for the citizens to have an insight into the act, and they can also provide their suggestions.

Regarding the risk imposed by the COVID-19 pandemic, the Dominican government have established the Vulnerability Risk Fund at the Centre Bank. The account in Centre Bank was opened in October of the last year. The government have also started to deposit amounts in that account. Till now, the amount of 4.5 EC Dollars have been deposited in the account.

FRF was designed to assure the fiscal and financial affairs of the government are conducted in a transparent manner. There was a misconception among people regarding the objectives of the government related to this act.