ECCB: Significant decline in grants, current expenditure and capital expenditure for Nevis in first 6 months of 2018

Dwindling inflows from a mismanaged and corrupted Citizenship by Investment Programme by the Timothy Harris-led Team Unity Government is not only affecting the finances of the Federal Government in Basseterre, but also the Mark Brantley-led Nevis Island Administration in Charlestown.

The St. Kitts-based Eastern Caribbean Central Bank (ECCB) has highlighted the significant reduction in grants to the Nevis Island Administration in the first six months of 2018 compared to the same period in 2017. The ECCB also reports a reduction in expenditure by the NIA.

The ECCB in its Financial Review for the first six months of 2018 reported that inflows of official assistance (grants) to Nevis, fell to EC$23.2 million from EC$32.8 million.

"This outcome was in contrast to a 47.7 per cent increase in the first six months of the previous year (2016) and was influenced mainly by a 70.4 per cent reduction in capital grants to EC$8.2 million, compared with grant receipts of EC$27.6 million in the same period last year (2017). This development was associated with a decrease in grant funding to the Nevis Island Administration (NIA)," said the ECCB Report.

The ECCB also reported that official assistance to the NIA amounted to EC$21 million in total grants, of which EC$15 million was budgetary assistance from the Federal Government, in the period under review, compared with EC$28 million in grants in the corresponding six months of 2017.

Current expenditure declined by 13.2 per cent to $57.6m, in contrast to a 7.3 per cent increase to $66.3m in the corresponding period of 2017. Lower current expenditure was attributable to reduced outlays on goods and services, personal emoluments and interest payments of 57.7 per cent, 1.0 per cent and 0.8 per cent respectively. The decrease in current expenditure was tempered by a 3.0 per cent increase in transfers and subsidies. Capital expenditure contracted by 37.5 per cent to EC$21.4 million, compared with EC$34.2 million spent in the corresponding period of 2017.