Grenada’s economic deficit is temporary

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Minister for Foreign Affairs, International Business and CARICOM Affairs, Oliver Joseph

By Caribbean News Global contributor

ST GEORGES, Grenada – Minister for foreign affairs, international business and CARICOM affairs, Oliver Joseph, announced Tuesday that the government of Grenada is facing a deficit due to increased expenditure, despite month to month increases compared to 2020.

“While the revenue situation is increasing, the expenditure is above the revenue. This is not a good situation to be in because it means you are in a deficit”, explained minister Joseph. “For the last five years, we were not in a deficit position but for the first time due to COVID-19 and the impact on revenue, we are in a deficit position now,” Joseph said during the weekly post-cabinet briefing Tuesday, August 10, 2021.

“ The situation from January to June is that we have not returned to the 2019 period because we are using the base year as 2019, before COVID-19 when the economy was performing well.”

Minister Joseph said Cabinet receives weekly status reports on the economy. Monday, August 9, 2021, reports/analysis is showing, “overall, we are still in a deficit”, in addition, “ we have to add EC$1.2 million to the wage bill for the public sector which will put us into a further deficit unless we have increase performance on the revenue collection side.”

Prime minister, Dr Keith Mitchell previously commended the recognisable improvement in the level of service provided in the country’s hospitals promised to honour the 4 percent salary increase while encouraging religious leaders to be partners in Grenada’s COVID-19 vaccination programme.

Despite reduced revenue, the government will pay the 4 percent to public servants’ salary from the end of August, said minister Joseph who also serves as head of the government’s negotiating committee to the collective agreement signed in late 2018, when the economy was performing well.

Meanwhile, the government of Grenada operates in deficit mode, a temporary situation to which current expenditure continues to pressure current revenue – projections, development goals and investments are poised to increase and reverse this trend.

The government of Grenada continues to implement its national sustainable development plan 2020-2035; coupled with global investors and a CBI programme many acknowledge is the Best value for money in the Caribbean.

Grenada’s CBI: Best value for money in the Caribbean

 

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