$485 Million Budget for TCI; Figures Revealed for 2024-2025

Dana Malcolm

Staff Writer

#TurksandCaicos, April 19, 2024 – The PNP Administration is using their final budgetary allocation, an all-time high of $485 million to do ‘More in ‘24 ’ according to Washington Misick, TCI Premier and Finance Minister, when he opened the 2024/25 budget debates on April 16.

A people-focused budget is what Misick says the PNP has created for residents with tackling cost of living as its ‘number one priority.’Citing the expanding economy with rates over 12 percent and the possibility of a revised A Economy rating he said:

”The one thing that keeps me up at night is the constant quest for ways to help our people, especially those in the middle-income bracket and those below the poverty line. Our macroeconomic success must translate to human and social development. It must mean well organized and functioning communities where modern amenities are available and it must mean a better life for all.”

The Premier cited this determination as the reason for denying the recent FortisTCI application for an electricity rate increase and lowered fuel taxes.

In the Construction realm, Misick maintained the government was leveraging its power to deliver for residents as well while criticizing the PDM for allowing wealthy contractors to slide without paying maximum taxes

“Everywhere you turn there’s a new building going up— because of the splitting of purchase contracts for land and construction by foreign wealthy individuals, which the former administration supported, the government is earning less from stamp duty but I promise that will change,” The. Premier said

Misick revealed that the PNP had removed tax holidays, allowing more money to flow into the country from large developments.

Misick doubled down on his administration’s commitment to social welfare programs highlighting the over $6 million increase in welfare since the start of their tenure. For retirees, a 20 percent increase has been granted and the pension fund now has $21 million as of March 31, 2024.

”Fairness to us is supporting people out of poverty not trapping them in a cycle of dependence,” he maintained.

In terms of figures many remained unchanged from the draft budget tabled two weeks earlier. Revenue remained at $452 million while expenditure went up to $389 million.

The GDP of the country grew by 13.7 percent in 2023 and is projected to grow by 4 percent in 2024, and the TCI is now listed as a ‘positive’ economy up from a ‘stable’ rating.

TCIG only managed to spend 29 million out of the 57 million that was budgeted for capital projects which the premier blamed on the drawn-out procurement process, outdated laws, and insufficient resources. He maintained that the government is spending 300,000 in this financial year to review the procurement process. Optimistically TCIG again budgeted $63 million for capital projects this year.

The $485 million budget for 2024/25 was split into 10 main parts.

1. $117.4 million – Public Service (Offices of Governor, House of Assembly, Ministries etc.)
2. $ 90.5 million – Health
3. $86.5 million –  Economic Affairs (Environmental and Coastal Resources,  Media, Energy and Utilities, Infrastructure Development including land acquisition, Tourism Product Enhancement, Agriculture, and Catastrophic Risk Insurance)
4. $71.6 million –  Public Order and Safety ( $39.0 million will go towards Police Services, $20.9 million to the Judiciary, $19.2 million for Customs and Border Protection, Immigration, and Repatriations, $7.7 million for Prisons, and  $1.5 million has been allocated for Fire and Rescue.)
5. $58.7 million – Education (Special Needs, Community College, Primary, Secondary and Daycare)
6. $27.0 million – Social Protection
7. $18.8 million – Estate Management, Housing and Community Amenities
8. $9.6 million Defense (National Security Secretariat, Military, Disaster Management)
9. $3.1 million  – Environmental Protection
10. $1.3 million – Culture

The Premier also broke down a list of priority initiatives encapsulated in the allocation, they included:

• $157.3 million for staff costs, around $30.7 million compared to the previous year.
• $6 million for the Community Enhancement Projects/Works Programme across all islands.
• $3.7 million for the Border Force
• $3.5 million for the pay and grading exercise of statutory bodies.
• $3.1 million for the Senior Citizens’ Financial Assistance Programme.
• $1.5 million was added to Social Welfare allocations for a total of $10.1 million.
• $1.4 million to cover an increase of 20 percent for pensioners and former legislators.
• $900,000 for MSME Investment, which includes funding for training programs, technical assistance, and opportunities for business development.
• $ 300,000 for the Prison Reforms and the Juvenile Intervention and Diversionary Programme to review the prison resourcing model within the Department of Correctional Services.
• $ 800,000 for additional staff enhancement of the growth and capability of the TCI Regiment to strengthen the islands’ security against illicit activities.

As for how the Turks and Caicos will afford all of this, revenue is expected to be $465 million leaving the country in a deficit of $19 million. Misick admitted, though, that it was unlikely that the deficit would come to fruition.

The top ten earners are expected to be:

• $119.6 million – Accommodation Tax
• $112.5 million –  Import Duties
• $54.2 million – Other Receipts
• $50 million – Stamp Duty on Land Transactions
• $42.9 million – Work Permit
• $38.8million – Other Customs Duties
• $11 million – Excess Revenue from Ports and Sea Travel Taxes –
• $10.9million – Fuel Tax
• $7.9 million – Vehicles and Driver’s License Fees
• $7.3 million – Business and Banking Related Receipts

Misick maintained that the PNP is delivering for the people, and the budget would provide ‘More in ‘24’, he said:

”If you recall, when we came to office in 2021, I made it clear that this is “The People’s Term” We have never wavered from that commitment. We have used the People’s Contract as our guidepost to ensure that we deliver on the promise—Our budget is designed to give our people opportunities and change their lives for the better.”