Grenada Today - The National Newspaper of Grenada, Carriacou & Petite Martinique

Government is hopeful of presenting the 2006 budget towards the middle of January.

This was disclosed by Finance Minister, Anthony Boatswain during Friday’s sitting of the House of Representatives.

Boatswain said that the Budget which was expected to be presented this month was pushed back to give people more time to prepare themselves.

During his presentation, the minister indicated that several consultations have been held with various interest groups on the island within the past few months to get ideas on how the Budget should be handled.

These consultations, he said led up to what was described as a very successful National Consultation that was held at the Grenada Trade Centre on November 23 where a number of important recommendations were made by citizens.

According to Minister Boatswain, some of these recommendations will be incorporated in the Budget presentation. The 2006 budget is expected to concentrate on six specific platforms - Housing; Stimulation of growth in the economy and projecting a growth rate in 2006 of 6%; Youth development with the centre piece being on the National Youth Service Programme; Reducing poverty and providing safety nets that include the expansion of the Old Age Pension both in terms of amounts in contribution and expansion in the number of recipients.

The Keith Mitchell-led New Natoinal Party (NNP) government will also attempt to use the budget to generate a fiscal surplus through the generation of more revenue and controlling expenditure.

It hopes to do this through the widening of the tax base and the introduction of a Value Added Tax (VAT); and the introduction of a debt restructuring programme.

Boatswain had indicated during the NNP’s annual convention held last month that the government plan is to reduce the current deficit of 4% to a current surplus of 2%.

The senior government minister noted that the poverty level in Grenada is unacceptable, and that there is need to eradicate poverty in the country.

During his presentation, the minister also announced that a high level team from the Washington-based International Monetary Fund (IMF) with support from the Eastern Caribbean Central Bank (ECCB) is currently in Grenada working along with the Ministry of Finance to put together a three year (2006-2008) medium term programme for the island.

He said that once Grenada receives support from the IMF, it will trigger financial support of US$15 million to the economy from the fund.

In addition, the IMF, World Bank and the Barbados-based Caribbean Development Bank (CDB) have agreed to work with donor communities to provide more support for Grenada in order to implement the three year home-grown programme.

He stated that the team will work together with the Paris Club of financial donors and non-Parish Club members to seek debt forgiveness for the country.

Minister Boatswain said that the Budget presentation will signal the launch of government’s medium term programme. He also used the occasion to issue a warning to those in the country who do not support the 5% Reconstruction Fund tax being referred to by the main Opposition National Democratic Congress (NDC) as Income Tax.

He said that these people can do so and risk destroying the country, adding that no funding agency will provide support to Grenada if the 5% contribution by workers to the fund is not implemented.

“So if some people feel they can run this country without international support then I wish them all the best”, he remarked. “It makes no sense undermining the foundation of the House you intend to inhabit. It will simply collapse and destroy you in it”, he said.

Trade unions on the island are due to meet on Saturday to adopt a series of measures to oppose the 5% tax.