UK authorities claim credit for shrinking TCI deficit

(CNS): The government of the Turks and Caicos Islands has reported an increase in revenue of some $118.5 million in the third quarter of this financial and a $33.5 million reduction in the UK territory’s deficit. Although the deficit was $7.4 million higher than the interim government had budgeted for it was down from just under $53.4 million in the same period last year. Hugh McGarel-Groves, the chief financial officer in the government, which is under direct rule from Britain said the measures it had taken were showing real results. TCI is inching towards the surplus which the UK has said is one of the milestones to be achieved before an election can be held.

“The finances of the Turks and Caicos Islands under the Interim Administration are definitely moving in the right direction,” said McGarel-Groves. “This analysis shows that the measures we have introduced are having an effect. I look forward to the end of year figures which will take into account the record high season tourism figures as well as the revenue generation measures announced last November.”

According to the figures government revenue was $118.5m for the nine month period, up $2.3m (2%) against budget forecasts, an increase of $33.0m (39%) on the same period last year. The deficit of $19.9m for this period up $7.4m on the budget forecast is still $33.5m lower the 2010/11 financial year

Governor Ric Todd added that one of the significant milestones was to achieve a surplus by March 2013.

“Not only is this necessary for elections to be held in TCI, but Government finances need to be in the black in this way in order to begin tackling the $189m debt inherited from the previous elected administration,” Todd said. “I firmly believe that tackling this debt in a professional and open way will send a message to the world that the TCI is properly governed once again and is open and ready for business.”

The report also shows that some reductions in government spending will begin to show themselves on the balance sheet. Currently 36% of all government expenditure is on Civil Servants’ pay and workers who are accepted for the Voluntary Severance Scheme will have left by March this year reducing the government wage bill.

The $12m annual SIPT and Civil Recovery expenses have been offset the government claimed by income of $1.2m received at 31 Dec. The top five of the 51 Civil Recovery cases currently underway would alone see $50m returned to the people of the TCI.
See the full report on the TCI finances below