Revenue collection in Grenada surpassed projections for the period January to June 2022 with economic growth projected to rise to 3.3 per cent by year-end.
According to a mid-year review prepared by the Ministry of Finance, “public finances continue to bolster in 2022 with revenue collections for the first six months exceeding the target and the comparable period of 2021 by $62.2 million and $67.4 million respectively”.
The report states that a primary surplus, including grants of $58.2 million, is estimated for 2022, surpassing the budgeted deficit of $34.2 million.
REMOVAL OF CAP ON FREIGHT AND PETROL
However, a modest overall deficit of $1.6 million is estimated at the end of this year compared to a budgeted deficit of $97.9 million.
Prime Minister Dickon Mitchell told members of parliament during the first regular sitting last Thursday (September 29) that his administration’s decision to remove the cap on freight and petrol is linked directly to Government’s revenue collection agencies earning more than what was projected in the 2022 Estimates of Revenue and Expenditure.
“We are happy that the revenue collections are doing better than projected and it is because of that we were in fact able to address and take some of the fiscal measures that we have taken to ease the burden on the citizens of Grenada as it relates for example, to removing the cap on gasoline to eliminating the petrol tax up to December.”
Dickon Mitchell, prime minister of Grenada
Wrapping up the debate on a EC$194-million Supplementary Appropriation Bill, Mitchell, who is also the minister for finance, commented: “We are happy that the revenue collections are doing better than projected and it is because of that we were in fact able to address and take some of the fiscal measures that we have taken to ease the burden on the citizens of Grenada as it relates for example, to removing the cap on gasoline to eliminating the petrol tax up to December. It is recognising that revenue is performing better than projected that we are able to fiscally and prudently take those measures to help ease on average Grenadians.”
The mid-year review report of Grenada’s economy was among documents laid in the House by the leader of government business for public scrutiny. It stated that revenue collection surpassed projections for the first six months of 2022.
The report focuses on the period January to June 2022, during which time the New National Party led by Dr Keith Mitchell was administrating the country’s affairs.
Comments