Castries, Saint Lucia: Prime Minister of Saint Lucia- Philip J Pierre, announced that for the 2022-2023 fiscal year, the Government was able to stay within its budget ceiling and the economy performed much better than anticipated.
The government’s fiscal operations are expected to improve, and a narrowing of the fiscal deficit is anticipated from a target of $394.6 million or 5.2 percent of GDP in the approved estimates to an estimated $150.2 million or 2.7 percent of GDP by year-end 2023.
In addition, a primary surplus of $29.6 million is anticipated in contrast to a primary deficit of $220.1 million.
These Budget estimates will seek to continue correcting the economic mess created by the previous administration, and there are many, and restore the social and economic fundamentals necessary for growing the economy to enable wealth creation and prosperity for all.
He wished to propose the following for the 2023/2024 Budget. These projections are realistic based on the environment under which we will be called on to operate.
● The Government of Saint Lucia proposed to spend $1.856 billion.
● Out of this amount, $1.442 billion is proposed to be spent on Recurrent Expenditure
● $302.14 million on Capital Expenditure.
● $218.93 million on Interest Payments.
● $112.25 million on Principal Payments or Amortizations.
PM Philip J Pierre added, “Our statisticians are predicting a further increase in our GDP for the calendar year as GDP is projected at approximately $6 billion as compared to $ 5.5 billion in the current financial year. In 2021-2022 GDP was $ 4.91 billion.”
PM Philip J Pierre announced that in this upcoming Budget year, they intend to continue to reduce their liabilities/payables and obligations to third parties. They cannot overemphasize their Government’s commitment to fiscal prudence as they intend to continue to maintain prudent macroeconomic indicators.
Therefore, in the upcoming Budget, they are projecting a primary surplus of approximately 0.7 percent of GDP or $42.54 million. As compared to $29.5 million, an increase of 44% over this year.