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2018 Annual Economic and Financial Review
DOMINICA
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Eastern Caribbean Central Bank
$13.4m recorded in the same period of the
previous year. Hence, the capital programme
was largely funded by the Government of
Dominica.
A current account surplus of $241.5m was
registered in 2018 (17.8 per cent of GDP)
compared with one of $176.0m (13.1 per cent
of GDP) in 2017, largely reflecting an
increase in current revenue. Current revenue
grew by $93.7m to $714.4m (52.5 per cent of
GDP), mainly influenced by a rise in tax
revenue of $74.1m to $401.9m. More
specifically, receipts from taxes on domestic
goods and services surged by $64.3m to
$251.3m, mostly due to upticks in value added
tax ($52.1m) and excise tax ($9.8m). Also
supporting the increase in tax revenue,
revenue from taxes on international trade and
transactions improved by $29.9m to $96.8m.
This outturn was largely attributable to higher
intakes of import duty ($13.1m) and customs
service charge ($16.4m), a reflection of the
surge in imports observed during the period
under review. Revenue raised from direct
taxes had a moderating effect as the intake
from taxes on income and profit decreased by
$18.3m to $47.0m. Receipts from taxes on
property also contracted by $1.8m to $6.9m
during the period under review.
Current expenditure grew by $28.2m to
$472.8m (34.8 per cent of GDP) as all the
main categories recorded higher outlays, apart
from personal emoluments which declined by
$20.1m, following the payment of a double
salary in 2017. Payments for goods and
services increased by $36.3m to $173.0m,
partially associated with the maintenance of
buildings, the procurement of professional and
consultancy fees, and the purchase of medical
and office supplies and equipment. Also
contributing to the expansion in current
expenditure, upticks in outlays were recorded
for transfers and subsidies ($8.4m) mostly due
to larger contributions to local institutions;
and interest payments ($3.6m) which were
primarily domestic.
The central government’s fiscal operations
were financed through a drawdown on their
deposits with and an increase in credit from
commercial banks. Meanwhile, the
government’s indebtedness to external
creditors declined through the amortisation of
loans from both multilateral and bilateral
entities.
Total disbursed outstanding debt of the
public sector has provisionally decreased to
$1,037.5m (76.3 per cent of GDP) in 2018
from $1,043.8m in 2017 (77.8 per cent of
GDP).
This outturn was largely attributable to