Whopping $240 Million Liquid Cash in TCIG Coffers will fund $18.4M Budget increase

By Deandrea Hamilton

Editor

#TurksandCaicos, October 12, 2022 – The Turks and Caicos Islands Government is constitutionally commanded to maintain a cash reserves capable of covering 90-days of public sector expenditure.  E Jay Saunders, the Ministry of Finance, Investment and Trade during House of Assembly debate last week revealed that the Government has surpassed mandated savings to have harvested a whopping, $240 million dollars cash, in the bank.

“I want to reiterate again that all the debt sustainability ratios agreed between the Turks & Caicos Government and the UK Govt. continue to be met, specifically:  • liquid Cash Reserves now stand at $240M, which equates to 212 Days Cash; (What does that mean Mr. Speaker? That means that if the TCI economy shuts down today, and our government was unable to generate not even $1 dollar or revenue, we could pay all our bills for up to 212 days.”

These outstandingly healthy revenues will enable the Turks and Caicos Islands government to bank enough money to run for well over the 90-days.

“For reference Mr. Speaker, the UK government requires us to keep a minimum of 90 days’ worth of cash reserves, we’re at 212 days! And Mr. Speaker, my long-term goal is to increase this to 365 days. God forbid, if we ever go into another prolonged lock-down again, one thing is for certain, the TCI will not have to, as the saying goes, “beg, borrow, or steal” to pay its bills. That’s prudent financial management. And that’s your government, the people’s government, working on the people’s behalf,” said Saunders in his October 6 presentation in parliament.

Turks and Caicos debt is also impressively low; falling slightly to under half a million dollars.

“Mr. Speaker, Net Debt as a percentage of Core Revenue is negative (that’s a good thing), and the National Debt Service currently stands below 0.1% of Core Revenues – i.e. that means that it’s less than $400K.”

The Finance chief also outlined the economic performance of the TCI, which continues an upward trend where it is outperforming estimates.

“Mr. Speaker, as I reported on Monday, government revenues have ticked upwards, and it is forecast to come in at $404.2M (including a Caribbean Catastrophe Risk Insurance Facility payout of $670k and grants and contributions of over $790k). This is an improvement of $1.45M.

I had visions that we could get to $400M in revenues by the end of our term in mid-2025, but God in his infinite wisdom saw fit to get us there sooner. Mr. Speaker, what we’re seeing today is summed up well in Psalms Chapter 107, verse 37, where it is stated that “They sowed fields and planted vineyards that yielded a fruitful harvest.”

Through this Supplementary Budget Mr. Speaker, our government is seeking to increase our projected Expenditure for this financial year by an additional $18.4M (4.5%), bringing it to a historic $420.3M,” said the Minister of Finance.

Turks and Caicos agreed to a budget deficit in order to facilitate several key budget augmentations including $3 million for the increased defence needed in the face of an out of control and deadly multi-national gang, turf war.  The government has also approved $2.5 million to FortisTCI; a move touted to see residential electricity bills cut by hundreds of dollars.

“Mr. Speaker, our government has allocated $2.5M (let’s call it a “mini Stimi”) to subsidize the electricity Fuel Factor, where it is being capped at $0.20 during the September – December 2022 period. Mr. Speaker, As Fortis TCI bills went out last night, 5th of October 2022, this initiative by our good government is already saving our residents hundreds of dollars on their monthly electricity bills.”

The supplementary, which is the second pitch for extra funds in the current fiscal cycle, will include support to Hurricane Fiona victims and more resources for the still ongoing payouts in government stimuli programs.

“Mr. Speaker, the Office of the Premier is getting $2.7M to facilitate stimulus payments ($700K) to those persons who have not received the $500 stimulus payment nor the current $1,000 stimulus payment, and $2M to provide for Citizen Relief from those affected by Hurricane Fiona.”

Minister E. Jay Saunders opened his presentation with the appeal and explanation.

“Through this Supplementary Budget Mr. Speaker, our government is seeking to increase our projected Expenditure for this financial year by an additional $18.4M (4.5%), bringing it to a historic $420.3M.”