Hon. Speaker, Hon. Premier,
Hon. Members of this House of Assembly, Strangers in the Gallery, Persons tuning in via radio and streaming media, and
My fellow Turks and Caicos Islanders.
Good day, Mr. Speaker, on Tuesday, 6th of February 2024, I laid the 4th Supplementary Appropriation Bill for FY 2023/24 in this Honourable House, and today I rise to Table the same. However, before I do so, I want to point out that our government is continuing to: “Deliver on our Citizen’s Contract, whereby we are achieving Social, Economic, and Environmental Progress for All.”
Mr. Speaker, in summary, for FY23/24 this Supplementary Appropriation Bill seeks to decrease:
a) the Expenditure Envelope by $1.07 million, thereby reducing it to $442.2 million, and
b) the Development Fund by $7.723 million, thereby reducing it from $70.5 million to $62.8 million.
Mr. Speaker, I would like to point out to this honorable house and the public that these changes do not affect the Expenditure Envelopes for Financial Years 2024/2025 and 2025/2026.
Mr. Speaker,
The totals that make up this Supplementary Appropriation Bill are as follows:
• Office of the Governor, an overall increase of $5,091.44.
• Police, an overall decrease of $118,393.83.
• The Attorney General’s Chambers, an overall budget decrease of ($402,460.60).
• The Judicial Administration, a decrease of ($1,352,555.23).
1. Statutory Charges, an increase of $1,059,666.00. Mr. Speaker, included in the Statutory Charges are adjustments to the pensions, gratuity, and staff costs to accommodate the additional allocations for the pay and re-grading exercise and increases to pensioners.
2. Mr. Speaker, I am happy to note that these adjustments are being funded from savings in staff costs from April-December 2023.
3. Mr. Speaker, also included in Statutory Charges is an allocation of $9.5 million to acquire land and settle an ongoing claim against the Government.
• Ministry of Immigration Border Services, a decrease of ($645,057.90).
• Ministry of Finance, Investment and Trade, an increase of $4,705,992.61.
• Office of the Deputy Governor, an increase of $ 733,464.43.
• Ministry of Education, Labour, and Employment Services, a decrease of ($2,914,031.3).
• Office of the Director of Public Prosecutions, a decrease of ($424,632.18).
• Ministry of Home Affairs and Transportation, an increase of $27,283.59.
• Ministry of Physical Planning and Infrastructure Development, a decrease of ($571,315.4).
• Ministry of Tourism, Agriculture, Fisheries, Heritage Religious Affairs, and the Environment, a decrease of ($187,243.75).
• Ministry of Health and Human Services, a decrease of ($168,029.74).
• House of Assembly, an increase of $205,909.23.
• Office of the Premier, a decrease of ($745,831.99).
• National Security Secretariat, a decrease of ($278,665.53).
Mr. Speaker, Our government has also made an allocation of $7 million as seed funding to set up a Mortgage Corporation.
Mr. Speaker, Together, the net effect of the aforementioned numbers is a decrease in Total Expenditure of ($1.070 million).
Mr. Speaker, As mentioned, this Supplementary Appropriation Bill also reduces the Development Fund by ($7.723 million).
This is made up of decreases in the following areas:
• ($500,000) = Radar Services Enhancement
• ($1,500,000) = Digitization of Border Services
• ($500,000) = Digitization – Inland Revenue Dept
• ($200,000) = Veterinary Clinic
• ($50,000) = Vehicles- National Trust
• ($600,000) = Refurbishment of building for Aged Care and Special Needs Centre for XNC and XMC
• ($5,000,000) = South Dock Port Redevelopment
And new spending for the following:
• Repairs to RGHS Art Block = $170,000
• Vehicle – Housing Dept. = $7,000
• Biosecurity and Animal Husbandry Project = $100,000
• Refurbishment of Horse-stable Complex – XNC = $50,000
• Micro E-Government Projects = $300,000, including funding for:
i. Drivers’ License Renewal Module.
ii. Vehicle License Renewal Module.
iii. Quick Pay e-commerce for SIGTAS receipts.
With these e-government projects Mr. Speaker, our government will improve the overall customer service within TCIG, cut down (if not cut out) the long lines at government offices, and improve the overall productivity of TCI’s workforce by not requiring them to stand in line for hours to utilize a government service.
Mr. Speaker, Before moving on, I would like to cycle back to the Mortgage Corporation mentioned earlier.
The establishment of a mortgage corporation by our government is expected to offer several benefits to Turks and Caicos Islanders, particularly in terms of housing finance and economic development.
Key Benefits Include:
Increased Accessibility to Home Loans:
Mr. Speaker, The mortgage corporation will be able to provide more accessible home financing options for Turks and Caicos Islanders, especially those who might not meet the stringent requirements of the main banks in the islands. Mr. Speaker, the mortgage corporation will go a long way to helping to increase homeownership rates among our people.
Competitive Interest Rates:
Mr. Speaker, The mortgage corporation will be able to offer competitive interest rates compared to the main banks in the islands. Lower interest rates make borrowing more affordable for Turks and Caicos Islanders, enabling our people, especially our young people, to purchase homes or invest in property development.
Economic Stimulation:
Mr. Speaker, By facilitating more home purchases and construction, our government expects that the mortgage corporation will stimulate the economy, including creating jobs in the construction and real estate sectors.
Social Housing Initiatives:
Mr. Speaker,The mortgage corporation will be able to support our government’s affordable housing initiatives, which is designed to offer housing options for Turks and Caicos Islanders.
Market Stability:
Mr. Speaker, By providing a consistent source of mortgage financing, the mortgage corporation will help to stabilize the housing market, especially during economic downturns.
Tailored Financial Products:
Mr. Speaker, The mortgage corporation will be able to offer financial products tailored to the specific needs of Turks and Caicos Islanders, including loans for renovations, expansions, and improvements – loans that are not easily available from the main banks in the islands.
Enhanced Financial Inclusion:
Mr. Speaker, By offering mortgage and housing finance solutions to underserved or marginalized Turks and Caicos Islanders, the mortgage corporation will promote financial inclusion, allowing more Turks and Caicos Islanders to participate in the housing market, as well as help them build wealth.
Update on YTD Performance
Mr. Speaker, I would like to take this time now to provide a brief update on TCIG’s financial performance for the first 3 quarters – i.e. from 1st of April 2023 to 31st of December 2023.
Total revenues over that period = $313.4 million, which is higher than the budget by 6%, and 3% higher than last year’s revenues.
As I stated last week Mr. Speaker, this increase is mainly a result of overperformance in:
1. import duties,
2. hotel and restaurant taxes, and
3. work permit fees.
At the end of the 3Q, total recurrent expenditure = $235.9 million, which is lower than the budget by $50.6 million (19%), but higher than last year by $17.5 million (8%).
Mr. Speaker,
This shortfall is mainly due to:
1. civil service vacancies,
2. lower-than-anticipated expenditures on professional and consultancy services, and
3. the Contingency Fund.
Mr. Speaker, the Operating Surplus at the end of the 3Q = $73.8 million, which is higher than the budget by $69.0 million, and higher than last year’s results by $4.3 million (6%).
Mr. Speaker, Together, the higher-than-budgeted revenue and the lower-than-budgeted expenditure, have led to increased cash and cash equivalents, which grew from $338.7 million at the end of Q2 (i.e. September 2023) to $350.7 million as of December 31, 2023.
As of 31st of October 2023, I am happy to say that our cash reserves stood at a robust $343.0 million.
In conclusion, Mr. Speaker, this 4th Supplementary Appropriation Bill for FY 2023/24 is a balanced and strategic approach to delivering on the objectives and KPIs in the budget while ensuring that we continue to achieve value for money. It is a testament to our government’s commitment to responsible governance and sustainable development, specifically social development.
With that, Mr. Speaker, I now invite this Honourable House to debate the 4th Supplementary Appropriation Bill.
Thank you.
Hon. E. Jay Saunders
Minister of Finance, Investment & Trade
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