Summary of the GORTT 2024/25 Budget
Commentary
Budgetary Measures
In the budget, five special projects were outlined:
Key Budgetary Measures Outlined
Online Numeracy Programme for Adults
Ministry of Education to offer classes via the
School Learning Management System – TTD3.2Mn allocated.
National Digital Literacy Project
Government to collaborate with NGOs to provide the skills and knowledge to vulnerable groups – TTD5Mn allocated.
Digital Literacy Certification for Students
Ministry of Education to implement the programme at various levels of education – TTD2.9Mn allocated.
Solar Powered Sustainability Project in
Secondary Schools
Ministry to implement the project in 26 secondary schools – TTD2.6Mn allocated.
Agriculture Internship Programme
30 Associate Degree graduates from the Eastern
Caribbean Institute of Agriculture and Forestry
(ECIAF) will be provided the opportunity – TTD2.2Mn allocated
Tax Amnesty
A Tax and NIS amnesty will run from 1 October 2024 to 31 December 2024 and is expected to be the final opportunity for taxpayers to pay what is owed without being subject to penalties and interest before the full operationalisation of the TTRA. Government does not expect to give any further amnesties after the TTRA is up and running.
Housing and Village Improvement
Programme (HVIP)
Approximately 500 houses will be built under the HVIP at a cost of TTD100Mn which will be financed off budget if needed.
Sporting Equipment Tax Exemption
From 1 January 2025, all sporting equipment except for clothing, will be exempt from all taxes and duty. This will cost TTD20Mn.
CSEC Remedial Mathematics Programme
Ministry of Education to implement an after school CSEC Mathematics Tuition Project at 26 secondary schools – TTD3.5Mn allocated.
Increased Minimum Wage for Government
Workers
Minimum wage to increase by TTD2.00 to TTD22.50 per hour. This change will take effect on 1 November 2024 and will cost TTD75Mn.
Public Sector Wage Negotiations
For the negotiation period 2020 -2022 an offer of 5% is being made, this is estimated to increase
recurrent expenditure by TTD475Mn and have
backpay of TTD1Bn up to the end of 2024.
Book Grant
A TTD1000 book grant will be made available
to 20,000 needy students to cover the cost of
schoolbooks. The same means test used in FY2024 will be applied and the total estimated cost will be TTD20Mn
Continued Implementation of Tax-Free
Agriculture
The Ministry of Agriculture, Land, and Fisheries will conduct a review of all items used in agriculture and will complete this exercise by 31 December Following this, a series of amendments will be made to laws to make Agriculture tax free by Q1’25.
Electric Vehicle Charging Equipment Tax
Exempt
Following the removal of taxes on electric vehicles in FY2024, all charging equipment required will also be made tax exempt starting 1 January 2025. Government expects this measure to reduce the carbon footprint but also reduce the need for the fuel subsidy.
New VAT Bond issue
The Ministry of Finance will issue VAT bonds
amounting to TTD3Bn on 31 January 2025. In
addition to this, SMEs owed refunds will be paid in cash by 31 December 2024.
Budget Number
Fiscal Allocations for FY2025
Economic Update
Real GDP expanded by 1.3% for calendar year 2023 and is forecasted to expand by 1.9% for calendar year 2024 driven by a 2.4% increase in the Non-Energy Sector and 0.7% contraction in the Energy.
For FY2024 the overall fiscal deficit was TTD7.14Bn, with Total Revenue stood at TTD50.363Bn and Total Expenditure was TTD57.505Bn.
Adjusted General Government Debt to GDP increased by to 75.6% in FY 2024, up from 72.1% in FY2023.
Foreign exchange reserves stand at USD5.5n, 7.7 months of import cover as of 30 Sep 2024, while HSF assets stand at USD6.1Bn.
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