Roseau, Dominica – July 14, 2008….. The Government of Dominica remains committed to prudent fiscal and economic management.
The revelation was made by Prime Minister, Hon. Roosevelt Skerrit in his presentation of the 2008/2009 Budget to Parliament.
According to the Prime Minister, the Government’s Macroeconomic Framework is predicated on the assumption that within the medium-term, a 3 percent minimum GDP growth will be attained.
The Prime Minister outlined his Government’s full commitment to maintaining the following policy goals in the medium-term:
· Ensuring sustainability of the country’s fiscal position
· Debt sustainability over the medium-term
· Strong management of the public finances
· Achieving economic growth of 3 percent per annum
· A primary surplus of 3 percent
For the 2007/2008 fiscal year, the Government is projecting a current account surplus of $2.8 million and a primary surplus of $12.7 million.
The 2007/2008 outturn reflects significant expenditure associated with the cost of rehabilitation following Hurricane Dean as well as settlement of arrears to utility companies.
After taking into account current grants of $2 million, a current account surplus of $22.5 million is projected for the fiscal year 2008/2009. Government is projecting a *primary surplus of $21.3 million for the present fiscal year, 2008/2009.
Personal Emoluments, wages, salaried and non-salaried allowances together constitute the largest share (43.6 %) of the recurrent expenditure budget. Goods and Services constitute 22.4 percent while interest payments and debt amortisation together account for 14.1 percent followed by grants and contributions at 10.3 percent. Retiring benefits account for 6.9 percent.
The draft recurrent expenditure budget for 2008/2009 is $248.6 million while the draft capital estimates is $143.1 million.