On June 7, The BVI Beacon turned 40. To celebrate, it is re-publishing some of the biggest stories from its archives over the past four decades. The article below originally ran December 15, 2005.
The BVI expects to collect a record amount of revenue in 2006, according to the proposed budget unveiled Tuesday.
Revenues for next year are estimated to be $233 million, which is about a 7.5 percent increase from the projected revenue in the 2005 budget.
Minister of Finance Ronnie Skelton led members of the Legislative Council through the 28-page report which, among other topics, focuses on education and building quality infrastructure.
“The modern information economy is about having skilled people and the networks to get their ideas, products and services out to a world market,” he said. “Therefore, this budget anticipates spending more resources to improve our health care system, our education system, our legal system and our social services network.”
To that end, a new high school, a new hospital, a new retirement home and a series of road projects are planned, Mr. Skelton said.
Government also plans to make it easier for BVIslanders to get an education. Mr. Skelton announced that government plans to make tuition at H. Lavity Stoutt Community College free for BVIslanders starting in the fall of 2006, and that scholarships will be increased by 50 percent.
The report shows a Gross Domestic Product of $898.1 million in 2005.
Factoring in an expected 5-6 percent growth rate, the GDP is expected to increase to “just under $1 billion in the next four years.”
According to the report, the government’s projected revenues are $233.1 million, while its total expenditures are expected to be $203.8 million, leaving a $29 million surplus.
“From this surplus, $24.2 million will be contributed to the Development Fund for the execution of capital projects,” Mr. Skelton said. “The remaining $4 million will be distributed among the Pension Fund, Emergency/Disaster Fund, Contingencies Fund, Repair and Renewal Fund and the Reserve Fund.”
Government spending in the 2005 budget was estimated as $188 million.
Mr. Skelton preached flexibility in a global economy where a ripple in one hemisphere can become a tidal wave in another.
“It is the duty of all who are in leadership positions in this territory, whether in the public or private sector, to keep a mindful eye on the changes taking place throughout the world,” he said. “On the home front, we are not immune to the same wave of rapid change that is everywhere the order of the day.”
The proposed budget also calls for the establishment of a Department of Culture to “give greater attention…to the preservation and development of [BVI] culture” and a BVI Shipping Registry.
Mr. Skelton said shipping registration is “big business and an aspect of shipping that the [BVI] is not benefiting from.”
Government also plans on establishing an International Unit charged with consolidating the territory’s overseas activities on behalf of the tourism and financial services industries.
“The growth we seek is about empowering the people of the BVI to accomplish all they dream of and to live as they deserve to,” Mr. Skelton said.”