ANGUILLA–In the Budget address delivered on Monday by Chief Minister Victor Banks, he announced that the estimated total cost of Hurricane Irma given by Economic Commission for Latin America and the Caribbean (ECLAC) is EC $880.40 million. He said the total value of all economic activity in Anguilla for the entire 2017 year was EC $909.76 million so Irma basically cost everything that the island had.
Banks pointed out that the tourism sector, which is the driving force of the economy, declined by a massive 10.41 per cent despite starting off the year very well with increased arrivals every month until September. However he noted that the construction sector had come to the island’s rescue economically with an 8.99 per cent increase for the year. This was mainly due to the heightened activity in debris removal, rebuilding and reconstruction. He said it was anticipated that the economy in 2018 would rebound with 7.05 per cent growth.
Revenue collected in 2017 was EC $192 million compared to the estimated amount of EC $214.9 million. The top five contributors to this were import duty, accommodation tax, stamp duty, customs surcharge and the interim stabilisation levy. Of these, import duty was the highest at EC $40.37 million. The recurrent expenditure totalled EC $195.43 million, giving rise to a deficit of $3.43 million.
Capital revenue and grants in 2017 totalled EC $37.9 million, comprising EC $8.15 million from the UK Government, EC $11.61 million from the European Development Fund and EC $18.14 million from the Caribbean Catastrophic Risk Insurance Facility (CCRIF). Capital expenditure totalled EC $21.02 million which was less than half of the amount budgeted. This was used for the construction of the Fire Hall and Air Traffic Control Tower, information systems development and the Albena Lake Hodge Comprehensive School Master Plan development.
Recurrent expenditure for 2018 is estimated at EC $202.15 million. The Chief Minister outlined the amounts for each Ministry of Government. The Ministry of Home Affairs’ budget increased considerably to EC $38.22 million, due to the addition of education and library services to the Department. As a result of the move the Ministry of Social Development’s budget has decreased considerably.
Recurrent revenue for 2018 is estimated at EC $177.5 million. This is down from 2017 due to the anticipated economic downturn in the tourism and related sectors following Hurricane Irma. Capital grants for 2018 are estimated at EC $84.54 million and comprise EC $68.35 million from the UK Government’s Anguilla Country Programme and EC $16.2 million from the European Development Fund.
The capital expenditure will focus on repairs, reconstruction and development of schools, health facilities, government offices, ports, roads, water distribution, communications and tourism development.
Banks said the UK Government had pledged EC $230 million in a reconstruction grant. Banks said he hoped there would be no further delay in releasing “this generous grant support offered by the British Government.” However, he noted that there cannot be any increased taxation as suggested by the UK officials, but what is needed is positive capital injection to build back stronger and better.
The debate on the Budget is scheduled for Monday, April 30.
Source: The Daily Herald https://www.thedailyherald.sx/islands/76055-cost-of-hurricane-irma-to-anguilla-estimated-at-over-us-320-million
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