 The Government of St. Lucia has demonstrated commitment to enhancing long-term fiscal resilience, stability and sustainability, with the implementation of sound fiscal policies that are aimed at reducing the debt-to-GDP ratio. In a statement to Parliament on Tuesday 24 November 2020, Prime Minister and Minister for Finance Hon. Alan Chastney explained that there has been a significant increase in government expenditures related to augmenting the healthcare system to respond to the coronavirus. Prior to COVID-19 St. Lucia recorded real growth of 1.7% in 2019, with growth expectations of 3-4% for 2020. Additionally, the country had made significant progress with its economic growth indicators and had attained a debt-to-GDP ratio of 60% as at the end of March 2020. The debt-to-GDP ratio, the Prime Minister informed, has spiked on account of projections of a decline in GDP that could be as high as 20% for fiscal year 2020. For fiscal year 2020, tax revenues have fallen by more than 50%. Prior to the onset of the pandemic, St. Lucia had experienced a decline in unemployment during the period 2017 to 2019, which was driven by developments in tourism and the construction industry. While the decline observed in St. Lucia's unemployment rate was welcomed, estimates suggest that unemployment as of early June 2020 went back up to 21%, primarily due to the effects of COVID-19. Despite these setbacks, the government of St. Lucia is committed to enhancing its long-term fiscal resilience, stability and sustainability, while at the same time fostering broad-based inclusive economic growth and development. The government is committed to maintaining strong macroeconomic fundamentals by continuing to implement sound fiscal policies and reducing the debt-to-GDP ratio to a prudential level. The government being a member of the Eastern Caribbean currency union has committed to attaining the 2030 debt target set by the Eastern Caribbean Central Bank. The government has committed to establishing a working group led by the Ministry of Finance, which will be approved by the Cabinet of Ministers by 31 March 2021 to design a rule-based fiscal responsibility framework. Established fiscal rules will be aligned with the fiscal policy get at attainment of the established 60% debt-to-GDP target ratio by 2030. There are five rules to be developed and adopted under the proposed framework. When our debt-to-GDP is under 45%, there will be no ceiling and post. When debt-to-GDP is between 45% to 55%, real-parami current expenditure grows in line with the real GDP trend growth. The trend growth rate, Mr. Speaker, is a 10-year average of our historical growth or 9-year historical and 1-year projected as to what the growth rate is going to be. When your debt-to-GDP is 55% to 60%, growth of real primary current expenditure will be less than 1% percentage point of that average. So it means whatever the average is, you will deduct 1% from it and that would be what the constraint on your primary current expenditure will be. When your debt-to-GDP at 60% to 70%, growth of real primary current expenditure and would be two points less the trend growth rate. And when your debt-to-GDP is over 70%, you would have a balanced budget for approximately two years. Prime Minister of St. Lucia, the Honourable Alan Shastney.