Prime Minister Dr. Ralph Gonsalves. *Photo credit: zimbio.com

KINGSTOWN, St. Vincent, CMC – Prime Minister Dr. Ralph Gonsalves Tuesday presented estimates for a new budget to Parliament as opposition supporters protested what they claim to be “major issues confronting the nation”.

Gonsalves is seeking EC$913.5 million (US$338.3 million) for the next 12 months, reflecting a 20 per cent increase over last year’s figure.

Between 2006 and 2009, the island recorded an average annual growth of 9.1 per cent in revenue, but Gonsalves announced a “conservative estimate” of 3.7 per cent for this year, citing the global economic crisis.

“We are being very cautious, even more cautious than usual on our estimates of the revenue given the international situation,” he said, noting that his administration made strenuous efforts to curb spending last year.

Gonsalves announced that as of September, 30, 2009, the national debt had increased by 10.2 per cent to EC$1.19 billion (US$400 million), or 75.4 per cent of Gross Domestic product (GDP)).

He attributed the increase to the 18 per cent — EC$90.2 million (US$33.4 million) — increase in domestic debt and 3.3 per cent — EC$19.27 million (US$7.13 million) — increase in external borrowing.

“As the public debt profile matures, it is expected that amortisation will increase in the medium term. The government debt-management strategy is crafted to take into account this plan,” Gonsalves said.

“However, even as amortisation rises, the effective cost of the debt remains low.  In 2009, the effective interest rate on the public debt was four per cent.”

This year, government is also expected to pay 3.5 per cent –EC$8 million (US$3 million) –more in wages and salaries, which will account for EC$237 million (US$87.8million) of the recurrent budget.

“Anybody who is listening can see what is the focus of this budget: education, health, poverty reduction, economic affairs and making sure that we are safe and well governed. That is what the recurrent budget is about,” Gonsalves told legislators.

But as Gonsalves spoke, opposition supporters gathered outside the Parliament building, highlight what the New Democratic Party (NDP) public relations officer Vynette Frederick said were “the major issues confronting the nation”.

She said chief among the issues were the state of the voter’s list ahead of general elections that political observers said could be held this year and the state of our nation’s economy.