Gaston Browne presents $1.64B budget, no new taxes proposed

Prime Minister and Minister of Finance Gaston Browne has presented a $1.64 billion budget in the house of representatives.

Thursday, 3rd February 2022

Prime Minister of Antigua and Barbuda Gaston Browne

Prime Minister and Minister of Finance Gaston Browne has presented a $1.64 billion budget in the house of representatives and declared that the government of Antigua and Barbuda is not introducing any new taxes for the Fiscal year 2022-2023. He said the government understand the difficulties endured by the public due to the COVID-19 pandemic, and people require some time to recover. "We also know that once they have sufficiently rebuilt their lives, livelihoods, and businesses, they will recover their savings and spend on the items they have been without for the past 24 months," Prime Minister Browne added. PM Browne said the Fiscal Budget 2022-2023 would help to revitalise the economy and speed up the achievement of an annual growth rate of 8% or higher. He stated that many new projects and initiatives would be implemented this year to accelerate the pace of economic recovery and provide benefits to all citizens and residents. PM said the budget is based on a bold and deliberate strategy for economic growth, job creation, and country transformation.

"We are opening up the country, opening up the economy, and opening up the chance for all to advance and thrive," PM Browne.

The budget calls for an overall resource demand of $1.64 billion, up 9%, or $130 million, over the expected total cost of $1.51 billion in 2021. The official press release claimed that the new budget symbolises the government's deliberate expansionary fiscal strategy, according to Prime Minister Browne, which is meant to stimulate the economy and accelerate a revival in domestic output. According to the budgetary and economic situation, the overall deficit for 2022 will be 2.6 percent of GDP, or $110 million, with a minor primary surplus. The primary balance is the overall fiscal balance minus interest payments on public sector debt, and it indicates the government's capacity to satisfy its obligations in a fiscal year without acquiring extra debt, according to Prime Minister Browne. Besides this, Recurring Revenue is expected to reach $975.6 million in 2022, a 23 percent increase over the $790.9 million generated in 2021. Components of Recurring Revenue:

$689.5 million in indirect tax revenue, $124.6 million in direct tax revenue, and $161.5 million in non-tax revenue
Capital receipts are projected at $7 million, while grant money is set at $50.2 million for Fiscal Year 2022.
The total recurrent expenditure, excluding principal payments, is anticipated to be $961.1 million.
In 2022, a current account surplus of $14.5 million is expected.

Components of recurrent expenditure:

Wages and Salaries: $410.6 million
Transfers and Grants: $159 million
Pensions and Gratuities: $73.4 million
Goods and Services: $167.6 million
Interest Payments: $110.1 million
Statutory Contributions: $40.4 million
The capital budget for 2022 has been set at $181.8 million.
It more than doubles the nearly $80 million spent on capital projects in 2021, according to the Prime Minister.

"No economy that has faced the restraints that ours has had as a result of the pandemic's impact can afford to be further constrained if it is to grow and expand." Prime Minister Browne stated.