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Government of the Virgin Islands 2007 Budget Estimates

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Government of the Virgin Islands 2007 Budget Estimates The Virgin Islands BUDGET 2007 T H E V I R G I N I S L A N D S RECURRENT BUDGET ESTIMATES 2007 Estimated Revenue $254,017,000 Estimated Expenditure $221,513,900 Estimated Surplus on the Year's Operations $32,503,100 Contribution to Development Fund $26,603,100 Contribution to Pension Fund $2,500,000 Contribution to Reserve Fund $1,500,000 Contribution to Emergency/Disaster Fund $1,000,000 Contribution to Contingencies Fund $500,000 Contribution to Repairs and Renewal Fund $400,000 Total Funds Contribution $32,503,100 i INTRODUCTORY PREFACE Overview of this Document This document presents the Budget in a 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 a new part in the document. It 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. This is the first time that the budget document has contained such economic and financial information. 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 islands of primarily volcanic origin occupying an area of approximately 200 square miles in the north east Caribbean Sea. Their total land mass is fifty-nine square miles and the population numbers approximately twenty five thousand. On his second voyage in 1493, Christopher Columbus sighted the islands and named them the ‘Virgin Islands’ in honour of St. Ursula and her 11,000 maiden followers. On the 1st July, 1956 the Virgin Islands became a separate colony with direct links to Britain and by royal warrant on 15th November 1960, St. Ursula was symbolised in the Virgin Islands’ Coat of Arms now shown on the cover of this budget. The term ‘Vigilate’, is an integral part of the Coat of Arms and translates to remind the people of the Virgin Islands to “be Vigilant”. Budget 2007 ii In 1672, following struggles with other European powers, the United Kingdom was finally able to annex the main island of Tortola and later that year, all of the Virgin Islands save for those in the possession of Denmark, In this same year, the Federation of the Leeward Islands was formed and was responsible for the governance of the Virgin Islands until 1st July, 1956,(with the Governor sitting in Antigua until 1960!) A local Legislative Council sat in the Virgin Islands from 1st February, 1774 to February 1902 and then from 1950 to present. The current system of Ministerial Government came into being in 1967. Pursuant to the Virgin Islands (Constitution) Order, 1976, the Foreign and Commonwealth Office in the United Kingdom appoints a Governor who has sole authority and responsibility for 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 are the Chief Minister, and four other Ministers responsible for various portfolios. The Legislative Council has 13 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 High Court of the Virgin Islands is part of the Eastern Caribbean Supreme Court, from which appeals may be made to its Court of Appeal and finally, to the Judicial Committee of the Privy Council in London. The Virgin Islands has a stable and prosperous economy fuelled mainly by tourism and financial services. Other active industries include construction, fishing, livestock cultivation and rum production. Because of traditionally close links with the United States Virgin Islands (formerly the Danish West Indies), the Virgin Islands has used the United States dollar as its currency since 1959. Budget 2007 iii CONTENTS Page General Warrant 1 Part 1: The Budget Address 2 Part 2: Economic and Fiscal Outlook 25 2.1 Introduction 27 2.2 Economic Outlook 28 2.3 Fiscal Outlook 49 2.4 Forecast Financial Statements 71 2.5 Detailed Revenue Forecasts – Traditional Format 77 2.6 Statement of Forecast Public Debt and Contingent Liabilities 86 Part 3: Estimates of Expenditure 91 Estimates of Recurrent Expenditure 93 Introduction 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 102 105 Legislative Council 104 110 Deputy Governor 108 115 Department of Human Resources 112 120 Training 114 130 Department of Disaster Management 116 150 Supreme Court 118 155 Civil Registry and Passport Office 120 160 Magistracy 122 170 Legal 124 180 Police 126 190 Audit 130 Chief Minister’s Office and Departments 132 Roles and Mission – Chief Minister’s Office and Departments 133 Actual Expenditure – Chief Minister’s Office and Departments 135 200 Chief Minister’s Office 136 205 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 Budget 2007 iv Page 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 220 450 Adina Donovan Home 224 480 Solid Waste 226 500 Social Development 228 Ministry of Communications and Works and Departments 232 Budget 2007 v Page 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 242 545 BVI Maritime Administration 244 550 Water and Sewerage 246 560 Vehicle Licensing 248 570 Public Works 250 580 Telephone Services Management Unit 254 Contributions to Statutory Boards 600 Chief Minister’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 Fund Contribution 266 Estimates of Capital Expenditure Introduction 270 Summary Capital Expenditure Table 271 Capital Expenditure Estimates by Ministry 2 Deputy Governor 273 3 Chief Minister 276 4 Ministry of Finance 280 5 Ministry of Natural Resources and Labour 281 6 Ministry of Education and Culture 284 7 Ministry of Health and Social Development 286 8 Ministry of Communications and Works 288 9 Miscellaneous 294 Appendix: Established and Non-Established Salary Grades and Salary Scales 295 Budget 2007 1 29th December, 2006 Ref. No.: FIN/E1/199 GOVERNMENT OF THE VIRGIN ISLANDS GENERAL WARRANT 2007 33 Admin Drive Central Administration To: Accountant General Complex Road Town, Tortola, British Virgin Islands You are hereby authorised and required to pay during the financial year 1 Telephone: January to 31 December, 2007:- (284) 494-3701 ext. 2144 a) From the Consolidated Fund, the sums granted totaling two hundred Fax: and fifty-four million, seventeen thousand dollars ($254,017,000) as (284) 494-6180 set out in the First Schedule of the Appropriation Act, 2007; and Email: [email protected] b) From the Development Fund, the sums granted totaling twenty-six million, six hundred and three thousand, one hundred dollars ($26,603,100) to be applied and expended for the services and purposes as set out in the Third Schedule of the Appropriation Act, 2007; as they become due, in accordance with the Laws and Instructions of this Government and subject to such instructions as I may issue from time to time hereafter.
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