Timothy Harris presents $952.2M budget, announces double salary for civil servants & more

Basseterre, St Kitts and Nevis: Timothy Harris, Prime Minister and Minister of Finance delivered the much-anticipated 2022 Budget Address. The Appropriation (2022) Bill, 2021, of approximately EC$952.2 million, was presented before the National Assembly on Tuesday at St Kitts Marriott Resort Ballroom. Prime Minister announced that all civil servants would receive an extra month's income, or double salary, in December 2021 to help reduce the burden on workers and promote economic activity across the Federation. The Budget is usually three hours and a half long, but on Tuesday, it was just relatively small, however more powerful with major announcements on board. He also announced that a number of initiatives that were implemented earlier this year as part of Team Unity's second stimulus package will be extended for the first six months of 2022. The National Assembly will resume its session on Wednesday, December 15, with presentations from members of both the Government and Opposition benches on the Appropriation (2022) Bill, 2021.

"As part of our effort to assist both consumers and businesses, we will extend several of the stimulus measures that we implemented and that were set to expire on December 31, 2021. These will be extended for another six months, and include the elimination of VAT and import duty on hygienic products such as hand sanitisers, disinfectant spray, rubbing alcohol, latex gloves, and so on," stated the Prime Minister.

He said it is crucial in the government's efforts to implement COVID-19 prevention measures. Select commodities, such as vegetable and fruit juices, will be exempt from import levies and customs service charges. "We will waive payments for water consumption for people who have been laid off or have had a significant reduction [in income] as a result of COVID-19, and our farmers will benefit from the extension of the waiver of payments for water consumption," Prime Minister Harris said. The drop in the corporate tax rate from 33% to 25% for enterprises that keep at least 75% of their employees is being extended until June 2022, as is the fall in the unincorporated tax rate from 4% to 2%. Furthermore, Prime Minister Harris stated that the Poverty Alleviation Program, which offers a $500 monthly stipend to households with a combined total income of less than $3,000 per month, will be expanded in 2022 to ensure that people continue to get this important financial help. "Mr Speaker, we propose that the 2022 estimates provide the necessary resources to support the PAP programme, as well as capitalisation the Severance Payment Fund to allow the payment of any new severance claims." Dr Harris stated that $32.3 million and $5 million would be allocated to the PAP programme and the Severance Payment Fund, respectively. In addition, in early 2022, a programme comparable to the Income Support Program, which supplied qualified candidates with $1,000 per month for three months, will be implemented. "We will implement a similar programme to what we did this year where they received $1,000 per month; we will introduce that early next year at a date to be determined," Prime Minister Harris stated. To reduce fraud, the government will follow a similar procedure. The $400 fuel subsidy granted to passenger bus owners will be extended for another three (3) months, and provisions will be established to provide a similar subsidy to certified taxi operators. Members of the gallery applauded Prime Minister Harris on multiple occasions during his speech, praising the measures suggested for implementation during the next Financial Year, which runs from January 1, 2022, to December 31, 2022. After announcing that all civil servants will receive an extra month's income this month to help reduce the burden on workers and promote economic activity across the Federation, the prime minister got a standing ovation and a thunderous round of applause. The news also sparked a flurry of favourable responses on social media platforms. Sonia Boddie-Thompson, Clerk of the National Assembly and former CARICOM Youth Ambassador, expressed her delight with the Budget Addresses emphasis on young people's growth. She said, "I believe the Budget presentation went well, and I believe you can see that the government is interested in investing in young people, recognising their potential and aptitude." Boddie-Thompson said, "I think people walked away feeling very satisfied, especially with the announcement of the double salary." "I think the general consensus across the Federation right now is that there was something in the Budget for everyone," she said.

Timothy Harris presents $952.2M budget, announces double salary for civil servants & more

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