TCI allocates more Money for 2023-2024, no worries about that Deficit says Finance Minister

Dana Malcolm 

Staff Writer 

#TurksandCaicos, December 15, 2023 – The government is expanding its budget by $10.5 million dollars following the tabling of the second Supplementary Appropriations Bill for the 2023/24 financial year,  pushing the overall budget to $443.4 million and increasing the planned deficit to $25.6 million.

It’s the first time the Turks and Caicos Islands have been in a deficit rather than a surplus in years and it follows a first quarter of negative growth. However, residents need not stress over the deficit, says E. Jay Saunders, Deputy Premier and Finance Minister.

“We are confident in our ability to return to a surplus in the medium term. Our debt sustainability remains well within the targets agreed upon with the UK Government,” he continued, “the utilization of our cash reserves for this deficit is a calculated and responsible decision, considering our reserves stand at a healthy level,” the Minister said during the House of Assembly on December 13th.

The money will come from the $343 million currently held in cash reserves.  Specifically, $5,788,222.23 million will come from the Consolidated Fund, and from the Development Fund, an amount of $4,765,850.

Despite this, the Government is still spending less than it predicted for this time of year and earning more.

“Our year-to-date aggregate revenue stands at $249.6 million, exceeding our estimates– Our total recurrent expenditures totaled $182.6 million, significantly below our estimates,” Saunders said.

The increased income is attributed to the collection of import duties, customs processing fees, and work permit fees, while the underspending is primarily due to vacancies within the civil service and lower-than-expected spending on professional and consultancy services.

“Making the best use of this underspend, our government has allocated funds to essential services and development projects without compromising our financial stability,” Saunders promised.