budget statement 2012.indd - Grenada Customs & Excise Division

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which serve as a proxy for employment trends, recorded 2,386 new registrations for the year 2011 compared to 1,977 the previous year. The average number of active contributors in 2011 was 32,000 compared to 31,000 in 2010, suggesting that jobs have been preserved and, indeed, increased. The preliminary count of the 2011 Housing and Population Census puts Grenada’s population at 103,328 - an increase of 696 persons over the 2001 Census. In contrast to the previous Census, the male population has now surpassed the female population. The count revealed 52,651 males and 50,677 females. This finding may be attributed to higher male births and migration patterns over the past decade. More findings will be shared when the analysis is completed. 3.2 FISCAL PERFORMANCE IN 2011 Mr. Speaker, 2011 was another very challenging year. Central Government operations resulted in a Primary Deficit (before Grants) of $121.8 million or 5.5% of GDP. The Overall Deficit (after Grants) was $103.5 million or 4.6 percent of GDP. This deficit was $44.5 million lower than budgeted. Recurrent revenue was $424.6 million, 93% of budgeted revenues resulting in a shortfall of $29.6 million. Current expenditure was $435.3 million, 98% of budgeted expenditure. As a consequence, there was a deficit on current operations of $10.9 million in contrast to the current account balance of $8.1 million budgeted. It must be noted that the shortfall in revenue was due to special concessions that was granted during the fiscal year as well as the slow economic recovery. Without these concessions, Customs would have surpassed its target and Government would have achieved a surplus on current operations. Capital expenditures amounted to $163.5 million, 80% of the budget or 7.3% of GDP. 2012 Budget Statement Page 11
Grants amounted to EC$70.4 million, $22.8 million more than budgeted. Total Revenue and Grants amounted to EC$495.0 million, 98.7% of budget or 22.3% of GDP. Revenue Performance The Customs & Excise department (CED) collected $205.3 million which was less than the $217.8 million target but slightly more than the $204.1 million collected in 2010. The factors responsible for the target not being met are rebate to manufactures on Excise Tax, relief on Excise Tax for motor vehicles and a reduction in petrol tax as Government tried to cushion the effect of high fuel prices. The Inland Revenue department (IRD) collected $182.1 million, which was less than the target of $214.5 million, and the $202.5 million collected in 2010. The factors responsible for the target not being met are lower receipts on corporate income tax, property tax and dividends. Performance of VAT and Excise Mr. Speaker, Government implemented VAT and Excise in February 2010 as part of a major overhaul of the tax system. VAT replaced the General Consumption Tax (GCT), Airline Ticket Tax, and the Motor Vehicle Purchase Tax. I now present the results for the second year of implementation: In respect of VAT, $159.8 million was collected, $1.9 million short of the approved estimate. In respect of Excise Tax, $6.9 million was collected, $4.1 million short of the approved estimate. These shortfalls can be directly attributed to additional concessions on VAT and Excise Tax made by Government after the presentation of the 2011 Budget. Page 12 2012 Budget Statement
Page 2 and 3: CONTENTS 1.0 INTRODUCTION 2.0 INTER
Page 4 and 5: 1.0 INTRODUCTION Mr. Speaker, I beg
Page 6 and 7: Last year, the US economy is estima
Page 8 and 9: 2.3 Economic Performance of the Eas
Page 10 and 11: 2.5 ECCU Eight-Point Stabilisation
Page 12 and 13: Manufacturing -4.9 -5.3 3.9 1.5 Ele
Page 16 and 17: TABLE IV - PERFORMANCE OF VAT AND E
Page 18 and 19: US$6 million - October 1997 US$10 m
Page 20 and 21: Education and Human Resource Develo
Page 22 and 23: • Cuthbert Peters Park in Gouyave
Page 24 and 25: 4.0 FOCUS AND THEME OF 2012 BUDGET
Page 26 and 27: During the past year, Government ad
Page 28 and 29: interest payments; and a further $7
Page 30 and 31: • Water Charges - 25% reduction
Page 32 and 33: The focus this year is on the imple
Page 34 and 35: Energy Development is a pillar of t
Page 36 and 37: The direct benefits of this Program
Page 38 and 39: This is an exciting and promising i
Page 40 and 41: nesses commenced operations within
Page 42 and 43: Since January 2011, VAT on cement,
Page 44 and 45: 6.7 JOB CREATION: IMPLEMENTATION OF
Page 46 and 47: Tenders for the construction phase
Page 48 and 49: Venezuela Multi Project This projec
Page 50 and 51: In terms of infrastructural develop
Page 52 and 53: Health System Strengthening Governm
Page 54 and 55: Government will continue its effort
Page 56 and 57: 4. Construction of Dover Hard Court
Page 58 and 59: Cabinet has received the report and
Page 60 and 61: With the support of the Government
Page 62 and 63: or Tainos - and to continue to rais
Page 64 and 65:
6.23 LAW AND JUSTICE In 2012, the M
Page 66 and 67:
The Force will also modernize its K
Page 68 and 69:
The Caribbean Regional Technical As
Page 70 and 71:
Mr. Speaker, the 2012 Budget shows
Page 72 and 73:
Annex II RevenueCollectionsbyDepart
Page 74 and 75:
Annex IV GrenadaFiscal&DebtIndicato
Page 76 and 77:
Annex VI UseofPetroCaribeFunds 2011
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