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2018 Annual Economic and Financial Review
SAINT LUCIA
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99
Eastern Caribbean Central Bank
The slightly improved fiscal outturn was
attributed to developments on the capital
account, which recorded a smaller deficit.
Capital spending declined by 33.8 per cent to
$143.3m (2.8 per cent of GDP), partly
reflecting a fall of 46.1 per cent in grant
receipts. A primary surplus of $113.2m
(2.2 per cent of GDP) was realised, compared
with one of $93.0m (1.9 per cent of GDP) in
2017.
The current account yielded a surplus of
$64.3m (1.3 per cent of GDP), a decline of
35.7 per cent over the outturn at the end of
2017. This deterioration was largely the result
of an expansion in current expenditure, which
more than offset an improvement in revenue
intake. Current expenditure grew by
13.0 per cent to $1,069.9m, reflecting growth
in all the major spending components. As a
percentage of GDP, current expenditure
increased to 21.1 per cent, from 19.4 per cent
in 2017. Expenditure on goods and services
rose by 39.1 per cent ($72.4m), in line with a
general increase in prices. Also recording
growth was spending on transfers and
subsidies ($36.0m) mainly reflecting higher
transfer and pension payments. In addition,
interest payments increased by 6.8 per cent to
$159.9m, following marginal growth of
0.2 per cent in the prior year. This increase
was largely driven by higher external interest
obligations. Outlays on personal emoluments,
which accounted for 36.2 per cent of current
expenditure, grew by 1.0 per cent ($4.0m), as
the amount spent on wages more than
doubled.
Current revenue rose by 8.3 per cent to
$1,134.2m (22.4 per cent of GDP) compared
with growth of 3.1 per cent to $1,047.3m
(21.4 per cent of GDP) at the end of the prior
year. Current revenue growth was influenced
by increases in both non-tax and tax revenue
yields. An increase of 72.2 per cent ($46.1m)
was noted for non-tax revenue, as yields from
fees, fines and sales almost tripled, associated
with receipts from the Citizenship by
Investment Programme. Tax revenue grew by
4.2 per cent ($40.9m), reflecting increases in
collections from all sub-categories of taxes,
with the exception of property taxes.