Prime Minister highlights benefits of Government’s commitment to prudent macro-economic management and stability

PM Skerrit as he read the 2010/2011 National Budget. *GIS photo

Roseau, Dominica – July 15, 2010……….. In his 2010-2011 Budget Address, Prime Minister and Minister for Finance, Hon. Roosevelt Skerrit revealed that the fiscal out-turn for the last fiscal year, 2009-2010, reflects his “Government’s commitment to prudent macro-economic management and  stability”.

Even as all the economies of the Eastern Caribbean Currency Union continue to grapple with the spill-over effects of the current global financial crisis, the Dominica government can point to favourable economic indicators.

For the 2009-2010 fiscal year, “current revenues are estimated to have outperformed projections by $4.6 million or 1.3 percent. Value Added Tax exceeded estimates by $4.1 million reflecting in part some economic activity and government’s continued effort in implementing an accelerated capital programme”.

The estimated actual capital expenditure for the year ended 2009-2010 was 16 percent of GDP. Of this total, 71 percent was financed through grants, 24 percent local financing and 5 percent loans.

“All in all, Madam Speaker, Government’s main fiscal indicator, the primary fiscal balance, recorded a surplus of 1.5 of GDP, short of the 2 percent that had been estimated. The main reason for this would be the non-implementation  of the measures for capital revenue  which accounts for more than 1 percent of GDP and the higher than projected level of government financing of the capital budget,” Prime Minister Skerrit stated.

On the issue of debt, the Prime Minister stressed his Government’s adherence to debt sustainability. In 2004 the Prime Minister launched his Government’s debt management programme.

“Madam Speaker, in terms of the fiscal year 2009-2010, I can report that our debt to GDP ratio now stands at 72 percent. I believe Madam Speaker that it bears reminding that this represents a climb down from 130 percent which is where the ratio stood in 2003. It is this performance that has helped to increase Government’s flexibility to respond to economic shocks and to maintain capital spending in 2009 at the high post-hurricane levels of 2007 and 2008,” Prime Minister Skerrit told Parliament.

Total Central Government Disbursed Outstanding Debt (DOD) now stands at $676.2 million. External disbursed outstanding debt accounts for $466.10 million or 69 percent of the total central government debt while Domestic debt accounts for $210.1 million or 31 percent.

“Yet another reflection  of the improved health of the public finances is that the ratio of interest payments to recurrent revenue for 2009/2010 is estimated at 5 percent and total debt service(interest and amortisation) is estimated at 12 percent,”  Prime Minister Skerrit stated.

The Prime Minister in his address pointed to the economic management policy goals of his Government as reflected in the Growth and Social Protection Strategy:

  • Maintaining as the centrepiece of fiscal management, a primary surplus target of 3 percent of GDP
  • To continue on the path of maintaining the sustainability of the country’s fiscal position
  • To continue working towards increasing sustainability  of the level of the national debt
  • Continued strengthening of the management of the public finances
  • To continue to create the conditions for achieving and sustaining economic growth levels at an average of 3 percent per annum.

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13 Comments

  1. francis francis chicago il
    August 4, 2010

    prime minister skerrit is the best p.m dominica ever have may god bless him good job p.m. i always pray for you.

  2. NJ
    July 18, 2010

    But the national debt not going down man?

  3. July 16, 2010

    @Salop: It looking like you did not understand what u read because if this is what u supporting as show them how it’s done, then our debt should be lower than higher because the figure is now 676.2 million dollars that is above 1/2 a billion dollars my friend.Which means all what he call grant is loan one way or the other.

  4. July 16, 2010

    skerrit sleep on this we need a national white sand beach in dominica and the only way i see we could reclam this is in calibishi those buildings on the lower side to the beach if we find property some where else and have them to relocate imagine it might song imposibly but it could happen move those house close to the beach so that the sea could get enoph breadin space so it could spred it sand we could even help it by rian bowing some sand after we remove the houses plant beutifull coconut tree and our local other beutifull flowers and we would have our national white sand beach along with a gran casino and hotel atach to it all that is in tourism

  5. we sic and fedup with the labour party and the uwp party what we need is for the both party to come together and work for a better dominica because we dominicans benn down for to long lets focose on uplifting or people and create jobs for our young people such as in sports turism lets start in woodfortile a grand five star hotel and we need to interduce horse racing in dominica.we have enufe land wear we could locate a very good spot also car drag racing track all this is good sports torism. we need to locate a good sport for mountain bike racing. it not all about racing butbin the develope world such as america and europe these are the type of sport they use to attract torism so far mr.skerit seams to be going kind of ok but he need to put a little mo emphasis into what is going on arong him focose more about creating jobs its time for we dominicans or dominica dream but in order to do that we need lower the duty on building materials atleast four percent any thing off would be good because foring life geting hard and dominicans are looking to run home but sertin things need to put in place to make life a little esiar the reason for that last but not least its time for us to enjoy a better dominica

  6. Fairness
    July 16, 2010

    @xmxn: Exactly so. The truth shall us free. Their stomachs churn on hearing or reading the truth.

  7. Cultish
    July 16, 2010

    @ok: So true. Signs of the times. CULT-like operations? Remember Jim Jones and the sad acts in Guyana? Jim Jones was adored until he poisoned the minds of thousands to the grave. None of his followers questioned his actions. He could do no wrong. Nobody else matters.

  8. 1$BILLION DEBT
    July 16, 2010

    @kimrah: 1$BILLION, $1,000,000,000,000 in DEBT, Agriculture dead, Manufacturing NADA, imports 2000 times greater than exports, unemployment increase 50 fold, crimes on the increase, Dominicans leaving the country in droves daily, people dependent on handouts, but economy doing good? Give me a break. PM and colleagues doing good, of course, pockets getting fatter while the majority of Dominicans getting poorer. Goebbles of Germany in Hitler times commented that ‘THE GREATER THE LIE AND THE MORE OFTEN THAT LIE IS REPEATED, THE MORE PEOPLE BELIEVE.’ Dominicans are well accustomed of the many lies and manipulations they are peppered with. PM told Dominicans that GOVT. would be buying a boat to take Dominican Agricultural products to Barbados and arrangements have been made with the Barbados GOVT. Not 1lb. of local food shipped yet, instead Dominicans buying cabbage, carrots etc. imported from MIAMI. Productivity gone to grass. Come on kimrah and others who just swallow anything PKM spews.

  9. kimrah
    July 16, 2010

    good job pm .show them how it is done.

  10. sad
    July 16, 2010

    P.M. in his presentation today spoke about those Dominicans over seas writing stuff on the internet that they are lottering and can use their blackberry where ever they are to write stuff. I guess he can say that because those are the words he know has nothing to do so he could get them to come down and vote. If they had something to do they would not have the time to come cost their vote to allow him to say they doing nothing

  11. xmxn
    July 16, 2010

    you need to create job for the peoplethats what D.A need people need to be independent so they can pay for and buy what they need not depend on handout from you

  12. ok
    July 16, 2010

    i dont understand it…the government is not made up of one man. it is made up of ministers, parl reps and senators who put their minds together to make a country a success. IT IS NOT ONE MAN. WE ARE BRAIN WASHED INTO A MODERN FORM OF IDOLATRY!!!! The nation needs healing before God whipes us out of the face of the country.

  13. July 16, 2010

    Great job P.M,only you can make it happen in this hard time globerly.

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