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2009 Budget Estimates

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2009 Budget Estimates T H E V I R G I N I S L A N D S RECURRENT BUDGET ESTIMATES 2009 Estimated Revenue 279,841,000 Estimated Expenditure 253,693,100 Estimated Surplus on the Year's Operations 26,147,900 Contribution to Development Fund 22,647,900 Contribution to Pension Fund 1,800,000 Contribution to Reserve Fund 500,000 Contribution to Emergency/Disaster Fund 500,000 Contribution to Contingencies Fund 500,000 Contribution to Repairs and Renewal Fund 200,000 Total Funds Contribution 26,147,900 iii Introductory Preface Overview of this Document The 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 2009 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, Cabinet, which has five other members. These members comprise of the Premier, and four other Ministers responsible to him for various portfolios. The House of Assembly 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 2009 v CONTENTS Page General Warrant Part 1: The Budget Address 1 Part 2: Economic and Fiscal Outlook 17 2.1 Introduction 19 2.2 Economic Outlook 20 2.3 Fiscal Outlook 33 2.4 Forecast Financial Statements 51 2.5 Detailed Revenue Forecasts – Traditional Format 59 2.6 Statement of Forecast Public Debt and Contingent Liabilities 68 Part 3: Estimates of Expenditure 73 Estimates of Recurrent Expenditure 75 Introduction 77 Summary Recurrent Expenditure Tables 80 Recurrent Expenditure Estimates by Ministry Constitutionally Established Departments 82 Actual Expenditure Constitutionally Established Departments 83 700 House of Assembly 84 705 Cabinet Office 88 710 Office of the Director of Public Prosecutions 90 715 Office of the Complaints Commissioner 92 720 Office of the Registrar of Interest 94 725 Human Rights Commission 96 730 Audit 98 Deputy Governor and Departments 100 Roles and Mission – Deputy Governor and Departments 101 Actual Expenditure – Deputy Governor and Departments 103 100 Governor 104 110 Deputy Governor 106 115 Department of Human Resources 110 120 Training 112 130 Department of Disaster Management 114 150 Supreme Court 116 155 Civil Registry and Passport Office 118 160 Magistracy 120 165 Commercial Court 122 170 Legal 124 180 Police 126 185 Law Reform Commission 130 Premier’s Office and Departments 132 Roles and Mission – Premier’s Office and Departments 133 Actual Expenditure – Premier’s Office and Departments 135 200 Premier’s Office 136 Budget 2009 vi Page 205 BVI Shipping Registry 140 210 Development Planning Unit 142 215 BVI International Finance Centre 144 220 Immigration 146 230 Information and Public Relations 148 240 Town and Country Planning 150 250 Trade and Consumer Protection 152 255 BVI International Affairs Unit 154 Ministry of Finance and Departments 156 Roles and Mission – Ministry of Finance and Departments 157 Actual Expenditure – Ministry of Finance and Departments 159 260 Ministry of Finance 160 270 Customs 164 290 Inland Revenue 166 300 Post Office 168 310 Treasury 170 320 Information Systems Unit 172 Ministry of Natural Resources and Labour and Departments 174 Roles and Mission – Ministry of Natural Resources and Labour and Departments 175 Actual Expenditure – Ministry of Natural Resources and Labour and Departments 177 330 Ministry of Natural Resources and Labour 178 340 Agriculture 180 345 BVI Fishing Complex 184 350 Conservation and Fisheries 186 360 Labour 188 370 Land Registry 190 380 Survey 192 Ministry of Education and Culture and Departments 194 Roles and Mission – Ministry of Education and Culture and Departments 195 Actual Expenditure – Ministry of Education and Culture and Departments 197 390 Ministry of Education and Culture 198 395 Youth Affairs and Sports 200 400 Education (Administration) 202 410 Education (Primary and Pre-Primary) 204 415 Department of Culture 206 420 Education (Other Secondary) 208 425 Education (BVI High School) 210 430 Library Services 212 435 Prison 214 Ministry of Health and Social Development and Departments 216 Roles and Mission–Ministry of Health and Social Development and Departments 217 Actual Expenditure–Ministry of Health and Social Development and Departments 219 440 Ministry of Health and Social Development 220 Budget 2009 vii Page 450 Adina Donovan Home 224 480 Solid Waste 226 500 Social Development 228 Ministry of Communications and Works and Departments 232 Roles and Mission – Ministry of Communications and Works and Departments 233 Actual Expenditure – Ministry of Communications and Works and Departments 235 510 Ministry of Communications and Works 236 520 Facilities Management 238 530 Civil Aviation 240 540 Fire Service 242 550 Water and Sewerage 246 560 Vehicle Licensing 248 570 Public Works 250 580 Telephone Services Management Unit 254 Contributions, Pensions, Public Debt and Miscellaneous 255 600 Premier’s Office 256 610 Ministry of Natural Resources & Labour 256 620 Ministry of Communications and Works 256 640 Ministry of Health and Social Development 258 650 Ministry of Education and Culture 258 660 Deputy Governor 258 800 Pensions and Gratuities 260 810 Public Debt 262 880 Miscellaneous 266 890 Funds Contribution 266 Estimates of Capital Expenditure Introduction 271 Capital Fund 272 Capital Summary 273 Capital Expenditure Estimates by Ministry 2 Deputy Governor 274 3 Premier 277 4 Ministry of Finance 282 5 Ministry of Natural Resources and Labour 283 6 Ministry of Education and Culture 286 7 Ministry of Health and Social Development 288 8 Ministry of Communications and Works 292 9 Miscellaneous 300 Appendix: Established and Non-Established Salary Grades and Salary Scales 301 Budget 2009 BUDGET 2009 PART 1: BUDGET ADDRESS 3 2009 BUDGET ADDRESS “Facing Threats and Capitalizing on Opportunities” Introduction 1. Mr.
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