From Turks & Caicos Weekly News

By Delana Isles IN JUST one year, the Turks and Caicos Islands could be debt free, that is, if the Government pays off the entire $3.75 million that is owed on the debt portfolio.

Premier Sharlene Cartwright Robinson made the revelation during her presentation of the Fiscal and Strategic Policy Statement (FSPS) to the House of Assembly on Tuesday (December 17).

“Our debt portfolio has been reduced to $3.75 million and we intend to repay $2.4 million in 2020/2021.

“Debt financing charges are forecast at less than one percent of revenue.

“Therefore… if the Government agrees to pay the balance of outstanding loans which will be about $1.3 million, this country will be debt free.”

As a result of this significant development, the premier said the territory is now “definitely poised to borrow for serious infrastructural needs”.

As it relates to sustainability ratios, she added that all compliance targets that have been agreed between the governments of the United Kingdom and the Turks and Caicos Islands will remain in compliance. UK support It was a memorable moment in February 2016, when the UK Minister of State for International Development, Desmond Swayne, reported to the UK House of Commons that the TCI had repaid its remaining borrowing under the $260 million loan guarantee on schedule, and with an outstanding borrowing need of just $28 million.

The Turks and Caicos Islands was then able to raise that amount without further recourse to the UK government for support. 

Almost three and a half years later, that debt will soon be repaid in full, potentially setting the Islands on the path of infrastructural development it has not seen in decades. 

“TCIG has progressed from deficits of US$77 million in financial year 2010/11 and US$29m in 2011/12 to a surplus the following year and strong surpluses thereafter,” Swayne told the House of Commons on February 25, 2015. 

“TCIG and the TCI public service had to make a number of difficult decisions and sacrifices. “Financial management and oversight has been strengthened, essential investment was maintained, including an expansion of the international airport that has allowed a significant increase in flights from US cities.

“The successful conclusion of DFID’s guarantee is a credit to the resolve of the TCI public service, TCIG, the Governor’s Office and UK-financed technical experts,” he added.

Government receiptsMeanwhile, also in financial year 2020-2021, the premier outlined that government receipts are forecasted at $324.9 million, about 29.3 percent of GDP.   

Recurrent receipt of $320.1 million or 28.8 percent of GDP are expected to be about $6.4 million higher in 2020-2021 than the forecast outturn 2019-2020 and $16.3 million higher than the actual performance for 2018-2019, the premier said. 

Non-recurrent revenue is $4.8 million, with total revenue at $324.9 million or 29.3 percent of GDP.

According to the Government’s projections, the forward years’ outlook is forecast to grow by three percent.

And the premier said the Government’s revenue enhancement strategy will continue to focus on reducing the tax burden on the residents and citizens.

“The aim is to use a balanced approach to improve voluntary compliance by improving customer service, increasing audit coverage, and proposing legislative changes to address tax compliance issues that are different in their nature and therefore required different responses.”  

She added that the robust GDP growth is expected to return recurrent revenue growth over the forecast outturn of 2019-2020 in the following ways: hotel and restaurant tax at 2.6 percent; import duties and customs processing fees at five percent; work permit at 2.8 percent; fuel tax at fiver percent and business licences three percent.

For more on this story go to; https://tcweeklynews.com/a-debtfree-tci-is-on-the-horizon-p10238-127.htm