2024 Budget Address | Government of the Virgin Islands

2024 BUDGET ADDRESS

DELIVERED BY

PREMIER AND MINISTER OF FINANCE

HONOURABLE DR. NATALIO D. WHEATLEY

THEME:

Planning, Priorities & Progress:

BUILDING A SUSTAINABLE NATION

Thank You Madam Speaker.

Deputy Governor, Mr. David Archer and Mrs. Archer, Financial Secretary Mr. Jeremiah Frett, Ministerial Colleagues, Honourable Members of this Distinguished House of Assembly, Specially Invited Guests, members of the Virgin Islands community viewing online and listening on the radio, members of the Media; a pleasant good day to everyone.

INTRODUCTION

Honourable colleagues, ladies and gentlemen, I am honoured to present the 2024 Budget Address, which aims to communicate to the national public the plans of the elected Government for the upcoming fiscal year and beyond, and how we propose to manage the financial affairs of the Territory and its development.

It is my first budget address since my colleagues and I were elected and sworn in as Ministers and Junior Ministers to lead the people of the Virgin Islands through adversity into a new era of prosperity.

Madam Speaker, my task is simple but incredibly difficult. It is to build this Virgin Islands, this burgeoning nation into an even bigger success.  This was a process started by our ancestors, and it is our responsibility to continue our advancement.

Madam Speaker, the period between the August 2017 floods and present day has been one of the most difficult in the history of these islands. And, as I illustrated in last year’s Budget address, titled, Revenue, Reform, Recovery & Resilience – The Virgin Islands in Transition, the overwhelming evidence is that our economy and our people have developed and have demonstrated an awe-inspiring level of resilience in the face of a myriad of challenges and shocks.

Yes, we have been hit by a barrage of heavy punches, Madam Speaker. But, every time we were knocked down, we got back up. We faced environmental disaster in 2017 with devastating floods and two category 5 Hurricanes. But, Madam Speaker, we got back up. We were clobbered by a global pandemic not long after, exacerbating our economic and social pressures. Yet again, Madam Speaker, we got back up. We were hammered by intense political turmoil with the threat of the suspension of our constitution. Madam Speaker, we rose to the occasion and got back up again. We are still standing today. And as though all those punches were not enough, two major international wars have started, contributing to inflationary pressures driving the already high cost of living up. Madam Speaker, with every knockdown, we have gotten up, and we are punching back.

RESTORATION OF GOVERNMENT BUILDINGS AND INFRASTRUCTURE

Madam Speaker, we have completed restoration of all the Government administration buildings on Tortola, Anegada, Virgin Gorda and Jost Van Dyke, with the exception of the Ralph T. O’Neal Central Administration Complex, where works are ongoing. These include the Vanterpool Building, the Flax Building, and the John E. George Building on Virgin Gorda; the Albert H. Chinnery Administration Building on Jost Van Dyke; and the Theodore H. Faulkner Building in Anegada.

We have also restored or repaired all our educational infrastructure, with a few exceptions. We rehabilitated the L. Adorothy Turnbull building and built the new Elmore Stoutt High School. We restored the Bregado Flax Educational Centre. Several schools  

Madam Speaker, there were many more school rehabilitation and maintenance initiatives at schools throughout the Territory between 2018 and 2022. The Jost Van Dyke primary school is nearing completion, and work on construction of the new Eslyn Henley Richez Learning Centre has commenced.

Almost all our recreational facilities have also been restored. These include the AO Shirley Recreation Grounds, the Anegada Recreation Facility, the Multi-Purpose Sports Complex, the A. Jeffrey Caines Sports Arena, and recreation grounds, basketball courts and softball fields across the Territory.

We repaired the health facilities, built social homes, repaired private homes that were damaged by the hurricanes, paid and much more.  And while our recovery has taken longer than anyone of us would like, I see light at the end of the tunnel.

Our economy, Madam Speaker, was able to rebound swiftly from the hurricanes and the COVID-19 pandemic. Businesses were able to reopen and to continue creating jobs. The projection is that at the close of 2023, the number of persons employed in the Territory will exceed the 2022 total of 21,134 persons by 1-2%.

Despite challenges to the industry from external forces, our financial services industry maintained a strong presence. The forecast is that 2023 should close with revenues in the vicinity of $251 million.

Madam Speaker, our tourism sector has also shown great resilience despite serious challenges over the last several years. We saw a quick and healthy rebound from the 2017 hurricanes. The recovery was interrupted by the COVID-19 pandemic in 2020, but from the moment we reopened our international borders in December 2020, the visitor arrivals have been consistently climbing. Tourist arrivals in 2022 were back up to 58.6% of total 2019 visitors.

That momentum continued into 2023. Visitor arrivals in the BVI are projected to surpass 2019 figures by the end of the year, with an estimated 978,052 visitors to the Territory. According to the trends, cruise and day trip visitors are expected to reach 736,413 persons. Meanwhile, United Nations World Tourism Organization (UNWTO) experts are still debating whether international tourism will reach 2019 levels in 2024 or 2025.

Madam Speaker, I am advised that the projection is that the Virgin Islands economy will end 2023 with of 5.5% growth in nominal Gross Domestic Product (GDP).

All of these facts, Madam Speaker demonstrate that we do have an economy that is resilient and very active.

FINANCIAL PERFORMANCE REVIEW 2023

Madam Speaker, further evidence of how well our economy performed, and how well the Government managed the affairs of the people, can be found by a quick review of the numbers for 2023.  

The revised estimates show the total revenue for 2023 was $377.02 million; just above the initial projections.

Taking a closer look at the revenue figures as they relate to tourism

SDGs, Targets, and Indicators

SDGs Addressed:

1. SDG 4: Quality Education
2. SDG 8: Decent Work and Economic Growth
3. SDG 9: Industry, Innovation, and Infrastructure
4. SDG 11: Sustainable Cities and Communities
5. SDG 13: Climate Action
6. SDG 16: Peace, Justice, and Strong Institutions
7. SDG 17: Partnerships for the Goals

Specific Targets:

• Target 4.1: By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes.
• Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries.
• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.
• Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
• Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.
• Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
• Target 16.6: Develop effective, accountable and transparent institutions at all levels.
• Target 17.6: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources.

Indicators:

• Indicator 4.1.1: Proportion of children and young people (a) in grades 2/3; (b) at the end of primary; and (c) at the end of lower secondary achieving at least a minimum proficiency level in (i) reading and (ii) mathematics, by sex.
• Indicator 8.1.1: Annual growth rate of real GDP per capita.
• Indicator 8.2.1: Annual growth rate of real GDP per employed person.
• Indicator 9.1.1: Proportion of the rural population who live within 2 km of an all-season road.
• Indicator 11.1.1: Proportion of urban population living in slums, informal settlements or inadequate housing.
• Indicator 13.1.1: Number of deaths, missing persons and directly affected persons attributed to disasters per 100,000 population.
• Indicator 16.6.1: Primary government expenditures as a proportion of original approved budget, by sector (or by budget codes or similar).
• Indicator 17.6.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals.

Table: SDGs, Targets, and Indicators

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Source: bvi.gov.vg

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