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2008 Budget Estimates

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2008 Budget Estimates T H E V I R G I N I S L A N D S RECURRENT BUDGET ESTIMATES 2008 Estimated Revenue 284,605,000 Estimated Expenditure 247,037,100 Estimated Surplus on the Year's Operations 37,567,900 Contribution to Development Fund 32,667,900 Contribution to Pension Fund 2,200,000 Contribution to Reserve Fund 1,000,000 Contribution to Emergency/Disaster Fund 1,000,000 Contribution to Contingencies Fund 500,000 Contribution to Repairs and Renewal Fund 200,000 Total Funds Contribution 37,567,900 iii INTRODUCTORY PREFACE Overview of this Document This document presents the Budget in its new format. The new Budget document is made up of three distinct, but related, parts: • Part 1: The Budget Address; • Part 2: The Economic and Fiscal Outlook • Part 3: The Estimates of Expenditure. Part 1 contains the full text of the Budget Address delivered by The Honourable Minister of Finance. Part 2 is made up of two sections. The first provides an analysis of the territory’s economy and the future economic outlook. The second provides aggregate forecast financial statements for the Government as a whole, together with an analysis of those forecasts. Part 2 deliberately has the “big picture”, government as a whole focus. Part 3 contains the detailed recurrent and capital expenditure allocations for each ministry and department. Part 3 has a specific initiative, line item focus. The content of this part is the same as in previous budget documents. The redesigned budget document is a first step in the Government’s initiative to improve the financial management practices of the Government of the Virgin Islands. Further enhancements to improve the transparency and effectiveness of government budgeting will be made in future years. Overview of the Virgin Islands The Virgin Islands are a group of forty mostly volcanic islands occupying an area of approximately 200 square miles in the north-eastern Caribbean. Total landmass occupies an area of fifty-nine square miles with a population of approximately twenty five thousand people. In 1493 Christopher Columbus, on his second voyage, sighted and christened the Virgin Islands in honour of St. Ursula and her maidens. As an interesting point, on the 1st July, 1956 the Virgin Islands became a separate colony with singular linkage to Britain, and in response to this, by the royal warrant on 15th November 1960, St. Ursula was symbolised in the Virgin Islands Coat of Arms, hence the coat of arms shown on the cover of this budget and the creed of the Virgin Islands “be Vigilant”. Budget 2008 iv After struggles with other Europeans, the UK was able in 1672 to annex the now main island of Tortola and later that year, all of the Virgins, which the Danes had not. In this year, the domain of the federation of the Leeward Islands was formed and from whence came the governance for the Virgin Islands until 1st July, 1956 (with the Governor sitting in Antigua until 1960!) but with the local Legislative council being allowed to sit in the Virgin Islands as from 1st February, 1774 to February 1902 and then from 1950 to present. The West Indies Act 1962 changed the source of authority to provide constitutions for the Virgin Islands from being vested in the prerogative powers of the Crown. The UK parliament authorizes her majesty in council to provide constitutions for the Virgin Islands. But pursuant to this act her majesty retains the right to disallow any locally enacted legislation to make laws for the peace, order and good government of the Virgin Islands. An option by Virgin Islanders to have their community become a singular colony of Britain on 1st July 1956 provoked social concerns which give birth to the Ministerial System in 1967. Pursuant to the 1976 constitution, the UK Foreign and Commonwealth Office appoints a Governor who has sole authority over matters of foreign affairs, defence, internal security, police, administration of the courts and civil service. The Governor also sits with and chairs, though as a non voting member, the Executive Council, which has five other members. These members comprise of the Chief Minister, and four other Ministers responsible to him for various portfolios. The Legislative Council has 13 directly elected members, one ex-officio member, and a Speaker. The legal system of the Virgin Islands is based upon English Common Law and equity, extended by the Common Law (Declaration of Application) Act and the Eastern Caribbean States Supreme Court (Virgin Islands) Act. The Virgin Islands’ High Court is part of the Eastern Caribbean Supreme Court, from which appeals may be made to its Appeal Court. A final appeal from that court is currently still maintained with the Judicial Committee of the Privy Council in London. The economy of the Virgin Islands (VI) is highly stable and one of the most prosperous in the Caribbean. The VI's economic engine is fuelled mainly by tourism, and financial services (international business services). Other active industries in the BVI include construction, rum production, and offshore financial services. Livestock cultivation is the most important agricultural activity. Because of traditionally close links with the US Virgin Islands, the British Virgin Islands have used the dollar as their currency since 1959. Budget 2008 v CONTENTS Page General Warrant viii Part 1: The Budget Address 1 Part 2: Economic and Fiscal Outlook 26 2.1 Introduction 27 2.2 Economic Outlook 28 2.3 Fiscal Outlook 48 2.4 Forecast Financial Statements 67 2.5 Detailed Revenue Forecasts – Traditional Format 75 2.6 Statement of Forecast Public Debt and Contingent Liabilities 84 Part 3: Estimates of Expenditure 89 Estimates of Recurrent Expenditure 91 Introduction 93 Summary Recurrent Expenditure Tables 96 Recurrent Expenditure Estimates by Ministry Deputy Governor and Departments 98 Roles and Mission – Deputy Governor and Departments 99 Actual Expenditure – Deputy Governor and Departments 101 100 Governor 102 110 Deputy Governor 104 115 Department of Human Resources 108 120 Training 110 130 Department of Disaster Management 112 150 Supreme Court 114 155 Civil Registry and Passport Office 116 160 Magistracy 118 170 Legal 120 175 Office of the Director of Public Prosecutions 122 180 Police 124 190 Audit 128 Premier’s Office and Departments 129 Roles and Mission – Premier’s Office and Departments 130 Actual Expenditure – Premier’s Office and Departments 132 200 Premier’s Office 134 205 BVI Shipping Registry 138 215 BVI International Finance Centre 140 220 Immigration 142 230 Information and Public Relations 144 240 Town and Country Planning 146 250 Trade and Consumer Protection 148 255 BVI International Affairs Unit 150 Budget 2008 vi Page Ministry of Finance and Departments 152 Roles and Mission – Ministry of Finance and Departments 153 Actual Expenditure – Ministry of Finance and Departments 155 260 Ministry of Finance 156 270 Customs 160 285 Development Planning 162 290 Inland Revenue 164 300 Post Office 166 310 Treasury 168 320 Information Systems Unit 170 Ministry of Natural Resources and Labour and Departments 172 Roles and Mission – Ministry of Natural Resources and Labour and Departments 173 Actual Expenditure – Ministry of Natural Resources and Labour and Departments 175 330 Ministry of Natural Resources and Labour 176 340 Agriculture 178 345 BVI Fishing Complex 182 350 Conservation and Fisheries 184 360 Labour 186 370 Land Registry 188 380 Survey 190 Ministry of Education and Culture and Departments 192 Roles and Mission – Ministry of Education and Culture and Departments 193 Actual Expenditure – Ministry of Education and Culture and Departments 195 390 Ministry of Education and Culture 196 395 Youth Affairs and Sports 198 400 Education (Administration) 200 410 Education (Primary and Pre-Primary) 202 415 Department of Culture 204 420 Education (Other Secondary) 206 425 Education (BVI High School) 208 430 Library Services 210 435 Prison 212 Ministry of Health and Social Development and Departments 214 Roles and Mission–Ministry of Health and Social Development and Departments 215 Actual Expenditure–Ministry of Health and Social Development and Departments 217 440 Ministry of Health and Social Development 218 450 Adina Donovan Home 222 480 Solid Waste 224 500 Social Development 226 Ministry of Communications and Works and Departments 230 Budget 2008 vii Page Roles and Mission – Ministry of Communications and Works and Departments 231 Actual Expenditure – Ministry of Communications and Works and Departments 233 510 Ministry of Communications and Works 234 520 Facilities Management 236 530 Civil Aviation 238 540 Fire Service 240 550 Water and Sewerage 244 560 Vehicle Licensing 246 570 Public Works 248 580 Telephone Services Management Unit 250 Contributions to Statutory Boards 600 Premier’s Office 252 610 Ministry of Natural Resources & Labour 252 620 Ministry of Communications and Works 252 640 Ministry of Health and Social Development 254 650 Ministry of Education and Culture 254 660 Deputy Governor 254 700 House of Assembly 256 710 Cabinet Office 260 800 Pensions and Gratuities 262 810 Public Debt 264 880 Miscellaneous 268 890 Fund Contribution 268 Estimates of Capital Expenditure Introduction 273 Capital Fund 274 Summary Capital Expenditure Table 275 Capital Expenditure Estimates by Ministry 2 Deputy Governor 276 3 Premier 279 4 Ministry of Finance 283 5 Ministry of Natural Resources and Labour 284 6 Ministry of Education and Culture 287 7 Ministry of Health and Social Development 289 8 Ministry of Communications and Works 293 9 Miscellaneous 300 Appendix: Established and Non-Established Salary Grades and Salary Scales 301 Budget 2008 viii 30th April, 2008 Ref. No.: FIN/E1/199 GOVERNMENT OF THE VIRGIN ISLANDS GENERAL WARRANT 2008 To: Accountant General 33 Admin Drive You are hereby authorised and required to pay during the financial year 1 Central Administration January to 31 December, 2008:- Complex Road Town, Tortola, British Virgin Islands a) From the Consolidated Fund, the sums granted totaling two hundred Telephone: and eighty-four million, six hundred and five thousand dollars (284) 494-3701 ($284,605,000) as set out in the First Schedule of the Appropriation ext.
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