Thanks to two years of prudent financial management and the apparent recovery of the North American economy, the Virgin Islands has turned a corner, Premier Dr. Orlando Smith said Monday morning during his budget address.
Dr. Smith’s proposed budget includes a projected $301,746,000 in revenue, with about $282 million from taxes.
The proposed $248,349,500 in expenditure includes $118 million for employee compensation; $54 million for goods and services; and $10 million for “social benefits,” Dr. Smith said. About $15 million will go to the Reserve Fund, he added.
The premier also said that while it’s not included in the budget document, this year the government will consolidate $80 million in public debt to make “fiscal headroom” for more borrowing.
Speaking about the job market, Dr. Smith said that those who lost their jobs during the territory’s recent string of layoffs have been “quickly reabsorbed” into the workforce.
After the address, however, opposition member Andrew Fahie (R-D1) said he disagrees with the premier’s assessment of the economy.
“The reality is that people in Long Bay hotel are out of work,” Mr. Fahie said. “The reality is that people in LIME will soon be out of work. The reality is that the people in FirstBank will soon be out of work. The reality is that most of the businesses have closed down and a lot of people are here out of work with mortgages to pay.”
See full coverage in the Jan. 16, 2014 edition.
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