It was a rainy and windy evening on Tuesday, December 11, when many invited guests turned out for the 2008 Budget Address by Anguilla’s Minister of Finance, the Hon. Victor Banks, who presented a staggering figure of EC$253 million to finance the public services over the coming year. It was by far the largest ever budget presentation in the island’s House of Assembly which shows the phenomenal economic growth of Anguilla in the 40 years since its 1967 revolution when it broke ties with St. Kitts-Nevis. The Budget Debate is set for Thursday, December 27.

Speaker of the House, Hon. David Carty (sitting), Clerk Adella Richardson (left) and Members of the House of Assembly

Of the $253 million, $200 million represents Recurrent Expenditure and $53 million Capital Expenditure, the latter being about the same amount estimated for 2007. The revenue budgeted for 2008 is $234 million, 33% more than that for 2007. Over $34% of the Recurrent Expenditure has been estimated for the Ministry of Social Development and its various departments and about 28% has been allocated to the Ministry of Finance and its departments. Over 48% of the Capital Budget goes to the Ministry of Infrastructure, Communications, Utilities, Housing, Agriculture and Fisheries and over 30% has been allocated to the Ministry of Social Development.

The 2007 Budget estimate was $174.98 million but was later revised at $205.75 million. By the end of November recurrent revenue collections stood at $186.9 million.

Mr. Banks, who has responsibility for Finance, Economic Development, Investment, Commerce and Tourism, entitled his Budget Address “Time for Consolidation: Coping with the Growing Pains of Transformation.” In commenting on that theme, the Minister said: “I have settled on this theme after listening to the various opinions which the people of Anguilla have offered on the state of our beloved country during the year. A consistent refrain has been the need to take time out to pause, to consolidate. To say Anguilla is undergoing rapid change is to state the obvious. And with change comes challenges which we must address or face the undesirable consequences.”

Justice Janice George-Creque and Civil Servants

Banks said that the 2008 estimates of recurrent expenditure for were 27% higher than in 2007. He gave some of the expenditure allocations as follows: Public Administration, an increase of 25% from $9.7 million in 2007 to $12.2 million in 2008; the Royal Anguilla Police Force, an increase of 26% from $8.7 million in 2007 to $10.9 million in 2008. The Department of Environment, a 52% increase from $381 thousand to $582 thousand; the Ministry of Finance, Economic Development, Commerce and Tourism, an increase of 44% from $506 thousand to $729 thousand; Department of Youth and Culture, an increase of 71% from $708 thousand to $1.2 million; and Education, an increase of 21% from 18.2 million to 22 million. There has been a sizeable increase of over 60% in each of the allocations for Airport Services, Fisheries and Marine Resources. Separately, the allocation for Air Services has been increased by 64% from 2.4 million in 2007 to $3.9 million in 2008.

Hon. Hubert Hughes and Hon. Edison Baird

Mr. Banks gave the island’s total public debt, including Government-guaranteed debt, at EC$132.6 million. He said that with reserves of 40.7 million, the net debt of the Government (without the guaranteed debt) was EC$74.4 million. He explained that the public debt was increased by a loan of $28 million during the course of the 2007. About $3.8 million was repaid. The loan was to finance port and road development and land acquisition.

Invited guests in the galleries

The Minister pointed to a very active tourism construction period involving millions of dollars. They include the KOR Group Meads Bay project of 350 rooms on 18 acres to commence in January 2009 with a build out period of 10 years and with a projected investment of US$250 million; the Gumbs’ Family Rendezvous Bay Redevelopment and Expansion Project of up to 450 rooms on 40 acres with a build out period of 10 years and a projected investment of US$300 million; the Lake & Kentish Family’s Conch Bay Project of up to 730 rooms on 361 acres with a build out period of 12 years and a projected investment of US$475 million; the Harigan Family’s Shoal Bay Development Project of up to 100 rooms on 7 acres, with a build out period of 3 years and projected investment of US$50 million; and the Gencom-Whitehall Street International (Genhall)-Cap Juluca Development and Expansion Project of up to 360 rooms (including the existing 98 rooms) on approximately 95 acres. The build out period is 10 years and the projected investment is US$400 million.

Invited guests in the galleries

Mr. Banks said the Government was happy that it was honouring its commitment to the continuing proud tradition of Anguillian ownership in the tourism industry by approving the Rendezvous Bay, Conch Bay and Shoal Bay Development Projects.

Speaker of the House, Hon. David Carty

Following the Budget Address, Chief Minister Osbourne Fleming led all the members of the House in taking turns to express season’s greetings to the people of Anguilla and to each other. In doing so they reflected on the meaning of Christmas and hoped that the love, peace and merriment it holds out would spread across the various electoral constituencies of Anguilla and to all persons.

Speaker of the House, the Hon. David Carty, joined in expressing similar sentiments. As he adjoined the Assembly until December 27 for the Budget Debate, he urged all the members to return after Christmas to express their views on the various matters contained in the Budget Address and the estimates of recurrent expenditure and revenue.

Honourable Victor Banks

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