“This government has been projecting a primary surplus at the end of every fiscal year for three consecutive years,” reported Prime Minister Philip J. Pierre on Tuesday evening as he laid out the estimates of revenue and expenditure.
Explaining that his administration is committed to fostering continued economic growth in Saint Lucia, Prime Minister Pierre provided the projections for the outgoing fiscal year.
“A primary surplus of $77 million is projected, equivalent to 1.1% of GPD. Additionally, a current surplus of $141 million is projected for the fiscal year 2024/2025,” Pierre said.
A current surplus is the difference between a government’s revenue and current expenditures. It indicates that a government is generating more revenue from its operating expenditures, such as taxes and fees, than it spends on day-to-day operations.
A recurrent surplus indicates that a government’s ongoing revenues are sufficient to cover its regular expenditures over time. A primary surplus, on the other hand, refers to the difference between a government’s total revenues and total expenditures excluding interest payments on public debt.
Prime Minister Pierre explained that these surpluses on government accounts indicate his administration’s deep understanding of wise financial decisions while driving economic growth.
“It is an important indicator of prudent fiscal management because it shows where the government can balance its budget before considering debt servicing. The primary surplus is a critical indicator as it reflects the government’s ability to reduce debt over time.”
Meanwhile, PM Pierre indicated that the deficit on the government’s overall balance is expected to narrow to $147.9 million from the approved budget position of $214 million. Explained Pierre: “This is $66 million less than expected.”
Public debt management is an area of concern for many small island development states, like Saint Lucia. The Prime Minister assures citizens that the government is honouring its debts and is setting an example for the private sector.
“I am pleased to inform you that the government of Saint Lucia has never defaulted on any of its debt obligations…to liquidate its financial obligations, my government has decided to settle $40 million for land acquisition and $25 million for health sector supplies, toalling $65 million in expenditure,” said the Prime Minister.
The Prime Minister also highlighted other key expenses of the government which he branded as being part and parcel of his “Putting People First” agenda: $244.5 on health; $189.4 on security; $7 million paid in Christas bonuses for civil servants; $33.4 in backpay for civil servants.
Despite these payments, the Prime Minister notes that, “Spending will be $1.8 billion – 5% below the approved estimates,” while conceding that “suboptimal project implementation levels and administrative bottlenecks” also add to this decrease in the government’s total spending.
The 2025/2026 estimates will be given life at Pierre’s policy address in April.
