Budget Speech 2011 - Government of Grenada

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We accept that this is a regional problem that requires a regional solution given the risk it poses to our entire financial system. For this reason, there is a major role for the Governments of Trinidad & Tobago, Barbados, ECCU and the policyholders in a final resolution. The BAICO portfolio consisted of: 1. Property; 2. Medical Insurance; 3. Life Insurance; and 4. Annuities Annuities account for 80% of BAICO liabilities. According to the Judicial Manager’s report in October 2009, the company is insolvent. This means liabilities exceed assets and that if the company were to be liquidated, persons would recover no more than five cents on the dollar. Furthermore, liquidation is a lengthy process which means policyholders would have to wait a long time even for this small amount. All of this means, policyholders need to be patient as the Governments work towards a better outcome than a recovery of five cents on the dollar. As we have previously indicated, the property insurance portfolio has been sold to Caribbean Alliance thereby ensuring policyholders have continued protection. In respect of health insurance claims, we anticipate that the Health Support Fund will be launched next month to help persons whose claims have not been paid since the collapse of CL Financial. In respect of the traditional life portfolio and the annuities, a revised proposal is before the Governments. We anticipate a full update on this issue will be given during the first quarter of this year. 2011 Budget Statement Page 11
3.0 LOCAL DEVELOPMENTS 3.1 Performance of Grenadian Economy In 2010, Grenada’s economy is projected to have declined by 1.4 per cent compared to a contraction of 7.7 per cent in 2009. It should be pointed out that after the first nine months of the year, the economy was projected to contract by 1.8 per cent. However, during the fourth quarter, there was a pickup in activities in the following sectors: construction, hotel and restaurant, wholesale and retail trade and transport. Mr. Speaker, a major factor for this expansion was the stimulus package announced by the Government last September. It provided special incentives to the tourism and construction industries. Government also expanded its labour intensive programmes such as Debushing and Farm Labour Support. The agricultural sector continued to be a bright spot in the economy with growth estimated at 8.25 per cent. This performance is remarkable having regard to the severe drought experienced in the first half of last year. Increased agricultural output was driven by a 12 per cent growth in crops. The main contributor was increased production of fruits and vegetables which grew by 26.3 per cent. The volume of Fish caught rose by 5.7 per cent. Other sectors estimated to record positive growth last year are the manufacturing sector (25%), mining and quarrying (3%), electricity & water (3.5%), real estate and housing (1.5%), government services (2.0%), and other services (3.5%). The hotel and restaurant sector which is used as a proxy for tourism contracted by 9% compared to a decline of 19% in the previous year. The tourism industry is very sensitive to external shocks and events. Last year, Government supported the industry by assigning a special VAT rate of 10%, spending $10 million in support for airlift and granting tax Page 12 2011 Budget Statement
Page 1 and 2: GOVERNMENT OF GRENADA 2011 Budget S
Page 3 and 4: 5.8 Strengthening Economic Manageme
Page 5 and 6: Page 4 2011 Budget Statement
Page 7 and 8: At home, many of us lost loved ones
Page 9 and 10: not accompanied by significant job
Page 11: Mr. Speaker, the data show that the
Page 15 and 16: In an effort to provide additional
Page 17 and 18: It is useful to understand how Gove
Page 19 and 20: Based on the revised GDP, Grenada
Page 21 and 22: This year, our VAT Unit will intens
Page 23 and 24: Improving the Business Climate •
Page 25 and 26: o o 6 acres of avocados 10.6 acres
Page 27 and 28: • Provided every primary and seco
Page 29 and 30: Violence Act - landmark legislation
Page 31 and 32: We pointed out that there are sever
Page 33 and 34: We commenced the process of tax ref
Page 35 and 36: In preparing this strategy we have
Page 37 and 38: will depend on two additional criti
Page 39 and 40: The individual freedoms we enjoy in
Page 41 and 42: Public Debt - $188.3 million (or 24
Page 43 and 44: 4. Improved marketability of fish p
Page 45 and 46: Support for Airlift It should be no
Page 47 and 48: in securing vacations and is workin
Page 49 and 50: We are working closely with the Off
Page 51 and 52: to explore the technical and commer
Page 53 and 54: the three (3) sites, thus negating
Page 55 and 56: In a real sense, C@ribNET is a cata
Page 57 and 58: And Grenada is not alone. Having re
Page 59 and 60: Project Grenville Market Developmen
Page 61 and 62: The report showed that of the perso
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To our dismay, the design works wer
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Its development goal is to contribu
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Programme. This initiative will tar
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VI. Support for Existing Businesses
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and we will continue to offer that.
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persons whose employment was involu
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This year, Government will continue
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9. Creating training and educationa
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The Grenada Home Improvement Scheme
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4. To commence work on the Top Hill
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The Sustainable Development Council
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The updated Public Service Rules an
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These achievements included: • Su
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all sectors of our society. NaDMA w
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The Organisation of Eastern Caribbe
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Mr. Speaker, we have articulated a
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Page 94 2011 Budget Statement
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Budget Speech 2011 - Government of Grenada

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