BUDGET REFLECTS STRONG BVI ECONOMY

Minister of Finance Honourable Ronnie W. Skelton has emphasised that Government is committed to making necessary investments to ensure the continued economic growth of the Territory.

Delivering the 2006 budget address on 13 December, the Finance Minister said the BVI’s economy has never been stronger, as the gross domestic product (GDP) is expected to increase from an estimated $898,138,000 in 2005 to just under $1Billion in the next four years.

Mr. Skelton said Government was faced with two choices to finance the projects that will begin in 2006, namely, to raise taxes or foster economic growth. But he said the current Administration is confident that the option to encourage economic growth will continue the moderate and steady progress seen during the last two years.

Minister Skelton noted that, along with Government’s resolve to ensure the people of the Territory enjoy the highest quality of life possible, the budget is a great tool toward making the BVI a “great little nation.” With the proposed budget reflecting a surplus of almost $30M, he said this demonstrates Government’s ongoing commitment to prudent financial responsibility and strategic management of the people’s money.

“Nothing more clearly or more powerfully demonstrates this resolve than the physical work that will begin early in 2006 throughout our Territory,” said Mr. Skelton.

The Minister said this includes the new hospital, the new high school, road projects, the new senior citizens centre, improvements at airports and seaports, international road shows to promote the financial services sector and the new marketing campaign for the tourism industry.

“This is but a small list of activities that will be undertaken, all with the same goal in mind––creating a stronger economy and building a more vibrant society,” said the Finance Minister. He stressed, however, that these activities are not limited to Government projects alone, as in October, ground was broken to commence a $70M high end resort and marina on Scrub Island.

Mr. Skelton said this influx of external money into the economy from a private developer will result in major economic benefits and opportunities for the people of the Territory. “The bottom line is that we are moving in the right direction and, as the economy grows, Government will have the means to invest in major projects,” he said.

The Finance Minister assured the people of the Territory that investment in major projects will be done in a manner that ensures future generations and Governments are not burdened with liabilities that will make managing the economy difficult. He said this is testimony to Government’s commitment to long term planning and an improved standard of living in the BVI.

“That is the growth we seek––a growth that is not about money, but about people,” he said. “It is about empowering the people of the BVI to accomplish all they dream of and to live as they deserve to.”

The Finance Minister said it is with this grand objective in mind that Government has already begun to formulate the beginnings of major projects, which will contribute significantly to the future success of the Territory.