Premier Ellis Lorenzo Webster, Minister of Finance and Health.
ANGUILLA--Premier Ellis Lorenzo Webster presented the Budget for 2021 in an address on Friday, December 18, with the theme, “Restoring Anguilla’s Economy Innovatively and Sustainably”. He said it is the most fitting theme as his administration’s guiding principle is to implement change through bold strategies and policies.
He said Anguilla had experienced several shocks over the past 12 years that impacted the economy. These included the global financial crisis in 2008, the banking crisis in Anguilla in 2016, Hurricane Irma in 2017 and the COVID-19 pandemic this year. “Upon coming into office, this administration determined the fragile financial and economic position of Anguilla and set about to ensure fiscal prudence, instituting a culture of discipline to curb spending, decrease contingent liabilities and ensure transparency, accountability and good governance,” he said.
Webster noted that the island now needs to restore the economy in a sustainable manner so that it can withstand shocks and weather the storms. “What Anguilla needs, and what my administration seeks to foster, is the diffusion of innovation – that is, widespread innovation across government, businesses and the community, realising the full benefits of productivity increases and economic growth.”
In 2020 the hotel and restaurant industry in Anguilla is estimated to have had a 70 per cent decline compared to 2019. This affected most industries except for health services, and especially transportation, renting and wholesale and retail trade.
Recurrent revenue for 2020 was 61.8 per cent of the estimated amount of EC $253.4 million. Webster said the overall revenue had performed reasonably well despite the circumstances and projected an end-of-year recurrent revenue outturn of EC $183.3 million. Totalled with the EC $41.5 million in grant aid from the UK, the total end-of-year projection is approximately EC $225 million, that is approximately 11 per cent below the approved estimate of EC $253.4 million.
Recurrent expenditure for 2020 received many cuts throughout the ministries and departments. The approved expenditure was EC $241.4 million but is projected to close the year at approximately EC $224 million which is just 7.2 per cent lower. Capital revenue and grants is projected to total EC $9.9 million with capital expenditure estimated at EC $7.6 million. “This year’s capital expenditure has been limited as a result of delays in the receipt of capital grants and the threat of COVID-19, both of which had implications for Anguilla’s financial stability,” Webster said.
The total expenditure estimated for 2021 is EC $226.7 million and Premier Webster outlined the expenses projected for each department. Recurrent revenue estimated for 2021 is EC $229.82 million. Taxes on international trade continue to be a significant revenue source and are estimated to bring in EC $48 million which represents 20.88 per cent of total estimated recurrent revenues. Import duties are the largest driver of this revenue category and are estimated to total EC $31.56 million. Taxes on goods and services account for 46 per cent of the budgeted total recurrent revenue and are projected to be EC $106.27 million.
“In conclusion, I wish to reinforce the theme of my presentation ‘Restoring Anguilla’s Economy Innovatively and Sustainably’. Restoring requires bringing back or returning to an earlier good position, such as good health. As stated in the introduction and throughout this presentation, the Anguillian economy has been critical for a long time and is in need of resuscitation. This must be done innovatively, employing creative, imaginative thinking, fresh ideas and new methods; and must be sustainable, ensuring stable, lasting and consistent outcomes,” he said. “The restoration of our economy will call for sacrifice, commitment and collective agreement that will define us as a people. We must be willing to sacrifice for each other and for Anguilla with the hope that through this we will all contribute to building a better society, knowing that we are all in this together. Together let us restore Anguilla’s economy innovatively and sustainably.”
