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2018 Annual Economic and Financial Review
GRENADA
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Eastern Caribbean Central Bank
in current expenditure was weaker than that of
current revenue, leading to the higher surplus
on the current account. Current revenue grew
by 7.3 per cent ($50.9m) to $751.0m, slightly
lower than the rate of growth of 7.4 per cent
in 2017. As a percentage of GDP, current
revenue was unchanged at 23.0 per cent. Tax
revenues amounted to $717.3m (22.0 per cent
of GDP), exceeding the prior year’s level by
approximately 7.1 per cent ($47.3m).
Revenue from taxes on international trade and
transactions rose by 9.1 per cent ($20.3m),
primarily associated with growing receipts
from import duties ($6.4m) and customs
service charges ($5.7m). Receipts from taxes
on domestic goods and services advanced by
4.5 per cent ($12.7m), primarily associated
with an increase of $14.0m to $249.6m
(7.7per cent of GDP) in Value-added Tax
(VAT) receipts. Taxes on income and profits
rose by 7.2 per cent ($10.1m), mainly as a
result of increased collections from
corporations ($7.1m) and the personal income
tax category ($3.0m). Revenue from taxes on
property grew by 17.3 per cent ($4.2m) to
$28.5m. Non-tax revenue rose by
12.1 per cent ($3.6m) to $33.7m, reversing
the contraction of 12.9 per cent recorded in
2017. Current grants amounted to $15.6m
(0.5 per cent of GDP) in 2018, an increase of
$1.7m over 2017.
Current expenditure expanded by 1.3 per cent
($7.9m) to $613.8m (18.8 per cent of GDP),
a noted slowdown from the 7.2 per cent
growth rate recorded in the previous year.
There was a 14.5 per cent ($19.3m) increase
in outlays on transfers and subsidies. Personal
emoluments, which is the largest expenditure,
rose by 3.0 per cent ($5.4m) to $273.1m as a
result of the granting of 3.0 per cent salary
increase and a one-time payment to public
officers. On the contrary, outlays on goods
and services fell by 3.3 per cent ($4.2m).
Interest payments also declined by
18.6 per cent ($15.1m), benefiting from the
conclusion of debt restructuring in 2017 that
included interest rate adjustments.
On the capital account, $73.8m (2.3 per cent
of GDP) was recorded in capital grants, above
the $64.2m (2.1 per cent of GDP) received in
2017. Capital expenditure totaled $89.7m
(2.8 per cent of GDP), up from $80.6m
(2.6 per cent of GDP) in 2017. The amount
expensed on capital expenditure was
approximately 30.0 per cent lower than the
2018 Budget Estimates mainly due to capacity
constraints.
Improved public financial management,
evidenced by higher primary surpluses
along with successful debt restructuring,