 Mr Speaker, Having now successfully stabilized the government of Saint Lucia's fiscal position, I am very pleased to deliver the 2024-2025 budget statement of estimates of revenue and expenditure. The 2024-2025 estimates will lay the foundation for sustainable growth in the economy and will provide real hope for our people. Hope that will provide investment and employment opportunities across all major sectors of the economy. We are able to achieve that suite despite the precarious position of the economy in 2021 and worsened by the COVID-19 pandemic. We will continue to provide tangible expressions of our commitment to putting people first. Mr Speaker, In present in the 2024-2025 estimates, it's important to reflect on the government's performance in 2023-2024. In addition to showing we are an accountable government, this process of reflection will show that this government is credible delivering on the promises it makes. This is a government that has earned its trust, the dividends of which are showing with increasingly investor confidence and respect and fruitful cooperation with friendly governments and regional and international institutions. In preparation for today's sitting, these estimates of revenue and expenditure were distributed last Tuesday evening after the meeting of the House of Assembly, providing eight clodies for members to adequately review the figures for an informed debate. The global economic environment for the 2024-2025 is no less challenging than that of the previous fiscal year. Global economic growth remains sluggish, interest rates remain high as major industrialized countries try to keep inflation under control. Supply chain issues remain a problem and the security of the world continues to be undermined by the walls in Ukraine and Gaza. And rights at our doorsteps, the political instability and violence in Haiti. The uncertainty of the possible negative effects of climate change are ongoing threats towards the viable as a small island developing state. It is imperative that provisions be made to build resilience for adaptation to climate events in all our infrastructure and agricultural programs. Notwithstanding the economic global challenges during 2023-2024, this government as the economic data will show has done well in managing the economy. Our financial ratios illustrate fiscal prudence and responsibility. Mr Speaker, as it is customary and keeping it for our public finance management legislation, today we are presenting the first part of the process, which is the presentation of the estimates of revenue expenditure for the fiscal year 2024-2025. The appropriation bill will be presented later in April 2024, when the policies that underpin this bill will be articulated and discussed. Mr Speaker, as I have indicated earlier, the foundational theme underlying this government's strategic initiatives has become an article of faith putting people first among members of my government. Mr Speaker, permit me now to account for my government stewardship of the economy for 2023-2024 before the presentation of the estimates for 2024-2025. Mr Speaker, my presentation for the most part will focus on the budgetary summary, while ministers will provide further details as they present on their respective ministries. Mr Speaker, I am pleased to report that government's performance improved over the fiscal year 2023-2024 despite the challenges that I spoke of earlier. With customer and investor confidence on the up, total revenue of 1.68 billion was raised to finance government's operations and capital projects, the elements of which as follows. Domestic revenues 1.28 billion, loans 140 million, grants 73 million, bonds and charge bills 82.6 million. Mr Speaker, on the expenditure side, the government's prudent management will have kept well within the 2023-2024 budget ceiling of 1.856 billion. The data up to February 2024 points to government spending approximately 1.68 million for the fiscal year 2023-2024 and estimated 9.3% below the approved estimates of 1.856 billion. In 2023-2024 expenditure on government operations fell by 9%, moving from 1.44 billion to 1.31 billion due to a reduction in project operating costs. Additionally, there was lower expenditure on capital projects of 259.6 million as compared to the project expenditure of 302 million. The latest experience in procurement and administrative processes were the main reasons for the shortfall. Capital expenditure increased over last year by 68 million or 4%. Mr Speaker, this year there was a primary surplus of 104 million, 42 million more than last year and 62 million more than the approved estimates. Current account surpluses of 156 million or 47 million over 2023 and recurrent account surpluses of 46 million or 49 million over 2023. Overall Mr Speaker, the primary balance is 1.5% of GDP as compared to 1% last year. The analysis shows that the results of this fiscal year were better than last year, illustrating an improvement in the performance of the solution economy. These surpluses are not to be interpreted as the government having extra cash. Instead it is the result of prudent fiscal management of the country's financing which allowed it to more than meet its recurrent expenditure leaving excess revenue to cover in part the country's debt obligations in interest payments and principal payments. Mr Speaker, had we not been able to do so, the government would have had to borrow to meet some of its recurrent expenditures like salaries and wages, rents, utilities and the like. We have responsibly guided this scenario and will continue to avoid it with prudent fiscal management of the government's financing. Mr Speaker, the primary surplus balance indicates that the country is developing the capacity to reduce its level of debt over time. A deficit on the primary account would have indicated that revenue on grants would be inadequate to pay the interest on debts. As a result, no contribution would have been made towards any reduction in the debt expenses. Mr Speaker, I hope this explanation has debunked the idea by some who may wish to mislead the public that government has generated more cash than it needs. Mr Speaker, not understanding these current occurrences, the government will experience an overall deficit in 2023-2024 of 111 million or 65 million less than last year indicating a lowering of the deficit gap. Mr Speaker, I look forward to the day when our revenue on grants will be sufficient to cover both current and capital expenditure leaving us with an overall surplus. If this country is kept in the hands of responsible men and women to administer as is the case now, it may one day get there. Mr Speaker, wages and salaries for the fiscal year 2024 of 517 million anticipated to fall below the approved estimates of 531 million by approximately 2.6% of 14 million. This reduction primarily stems from the lower than expected project management expenses emanating from delays in project implementation. Wages and salaries for 2023 will 535 million or 18 million more than this year. Due partly to the payment of retroactive payments to public servants last year. Mr Speaker, the debt payments are the first call on the consolidated fund and every effort continues to be made to honour these obligations in a timely manner. Mr Speaker, for the year-end outlook we anticipate 326.2 million will be paid towards our debts. 215.1 million interest payments and 111.1 million in principal payments. Last year we spoke about the increases in interest payments due to the significant upward trend in the SOFR rates because of the steady increases in the federal fund rates during 2023. Although the rates remain high, the estimated amount projected fell below the approved estimate for 2023-2024. Mr Speaker, for the year-end outlook this government would have paid 231.5 million dollars in transfer payments 3.2% lower than the approved figure of 239.1 million but 10.5% above the payments made in 2022-2023. These payments went to subsidise the operations of state-owned entities, increases to organisations supporting the poor and marginalised, public assistance to the most needed in our society and the payment of school facility fees. Mr Speaker, expenditure in goods and services will amount to 309.9 million for 2023-2024, approximately 95.9 million below the amount approved for the same fiscal year. Mr Speaker, in this category of expenditure are rentals of government premises, utilities, training, consultancy fees, operation and maintenance and purchase of supplies and materials. The lower expenditure than what was approved is mainly due to reduced payments for consultancy services. The lower expenditure that was approved is mainly due to reduced payments for consultancy services related to capital projects and other government initiatives. Mr Speaker, in the 2023-2024 budget year we approved 302 million in capital expenditure with 19.2 million being non-project capital and 282.9 million for capital projects. Non-project capital items refer to the purchase of government assets such as vehicles, furniture and other equipment not associated with projects. While project capital refers to buildings, infrastructure and equipment associated with specific projects. Mr Speaker, we are projecting an overall spend of 259.6 million in capital expenditure for the year 2023-2024, a 14.1% decrease from what was approved in the estimates. Mr Speaker, a significant portion of funds allocated for capital expenditure comprise of design finance control DFC commitments. For the year 2023-2024 the government was obligated to pay 106 million to settle DFC commitments limiting the government's investment in new infrastructure. The government's priority now is to significantly reduce these DFCs to provide the fiscal space for the implementation of key infrastructure projects. Mr Speaker, the enactment of the procurement bill is proven to be on earth and has resulted in an impediment to the government's level of project implementation as relates to the procurement of goods and services. There is therefore need to revisit the act with a view to finding optimum balance among the essential elements of good governance. Mr Speaker, there is an urgent need to remove some of the administrative bottlenecks that continuously undermine the level of implementation of government projects. We shall be addressing these bottlenecks issues in 2024-2025 fiscal year so that we can deliver the much needed services to the people of Senusia. Mr Speaker, despite these challenges this government will continue to deliver on its capital portfolio. I shall provide more details of these projects during my policy address. Public sector projects this year, 2023-2024 included renewable energy sector development project, OECS tourism projects, disaster vulnerability and reduction projects, St. Jude reconstruction project, commencement of construction of the northern police headquarters and commencement of construction on the custody suites. I now turn to the revenue Mr Speaker. Mr Speaker, allow me to discuss government's revenue performance for the fiscal year 2023-2024. Mr Speaker, there has been much misinformation and exaggeration from the opposition of the impact on the local economy regarding the implementation of the health and security level. For the purpose of clarity the health and security level provided a relatively small but important collective contribution to the huge demands that health and safety places on the resources of the country. Mr Speaker, the projected collection from the health and security level was approximately 35 million designed to finance in part rising healthcare costs and security needs of our country. However, given the delay of implementation of the level we are estimating a collection of 18 million by the end of the fiscal year 48% less than projected. This means Mr Speaker that from the increase in revenue of 118 million dollars over last year only 18 million can be attributed to the health and security level. Mr Speaker, an analysis of the country's health and security obligations should place in context the need for the levy and the need to be proactive in taking measures that will help the government keep pace with rising costs especially in health. Let's take a closer look at what government spent in this fiscal year 2023 to 2024. The direct cost of healthcare provision of healthcare services 160 million capital expenses Saint-Jule Hospital reconstruction project 17 million health system strengthening project 5.3 million OECS regional health project 2.3 million universal health coverage 700,000 other projects on the health 3.4 million total capital expenses on the health 28.7 million total health expenses 188.7 million other expenses the government is indebted to several private local and foreign healthcare facilities that provide medical care to citizens. National security provision of national security services 84.7 million capital projects 1.5 million total expenses 86.2 million other expenses relating to the purchase of vehicles and equipment will be outlined in the policy statement Mr. Speaker note that expenses for bodily have not been included Mr. Speaker direct government expenses on the health and security was 275 million for the fiscal year 2023 to 2024 however only 18 million was collected from the health and security levy to fund the needs of the country Mr. Speaker I want to repeat direct government expenses on the health and security was 275 million dollars for the fiscal year 2023 to 2024 however only 18 million was collected from the health and security levy to fund the needs of the country Mr. Speaker although will fall short of our projected total revenue target for 2023 to 2024 revenue collection continuously indicate an upward trend because of increasing economic activity resulting in improved performance in several revenue areas notably personal income tax taxes on goods and services and excise tax on petroleum products Mr. Speaker grant receipts are normally tied to the implementation of projects with the less than desirable level of project implementation only 73 million has been anticipated a 50.3 percent decline in the amount approved for 2023-2024 in addition Mr. Speaker non tax revenue is projected to perform below the approved amount by approximately 29.9 million due to lower receipts of voluntary transfers based on the foregoing Mr. Speaker total revenue grants fall short of the target receipts by 121 million or 7.8 percent Mr. Speaker when compared to last year recurrent revenue increased by 124 million and total revenue increased by 118 million financing as previously indicated the government anticipates in its fiscal operations leading to a narrowing of the fiscal of the fiscal deficit from the approved estimate of 176.4 million or 1.8 percent of GDP to an estimated 111 million or 1.6 percent of GDP by year end additionally the primary surplus is forecasted to exceed the approved amount of 42.4 million additional total of 104 million the projected out turn entails disbursements towards the following items of expenditure loans 139 million reflecting a strategic utilization of borrowing to meet critical funding requirements for the developmental projects and infrastructure Mr. Speaker let me repeat loans for 2020 139 million dollars loans received for 2023-24 139 million dollars Treasury bills and bonds 82.6 million demonstrating the approach in utilizing debt instruments to manage liquidity to meet short to medium-term financing this includes the insurance of Treasury bills and bonds to efficiently raise capital while maintaining financial stability and market confidence the government's ability to raise capital relates to high investor confidence in solution since this government took over the management of this country this this was evidence by the debt unit recording over 92% rover of Treasury billing instruments Mr. Speaker the government remains committed to prudent financial management let Virginia diversified financial strategy that encompasses born raising loan disbursements and Treasury bills to ensure sustainable fiscal health and economic growth 2020-24 2020-24 was a fiscally well managed year setting the platform for an even better 2024-25 Mr. Speaker I come now to the 2024 2025 estimates Mr. Speaker this government having delivered successfully on the promises made to the people of solution project confidently seeks to deliver even more to the people of solution in its estimates of revenue and expenditure for 2024-25 Mr. Speaker we are steadfast in our commitment to meeting the hopes and aspirations of the people of solution fiscal responsibility truth truth and respect for the people of solution to guide what we have promised in our 2021 manifesto Mr. Speaker as we go through the budget processes today and next month our intentions will be fully articulated Mr. Speaker the theme for the 2024 estimates have been titled the year of infrastructure our aim and objective are to transform the economy of solution for infrastructure development physical social and digital in the upcoming year we plan to focus on the following 1. Road expansion and repair programs 2. School plant rehabilitation 3. Government plant refurbishment 4. Construction works at St. Jude hospital 5. Commencements of work on the Sufre hospital 6. Establishment of the Cass Street urban polykinic 7. Completional works on the Lariusus Wellness Center 8. Rehabilitation of sporting facilities including Dyer and Sammy Cricket Ground for readiness to host the ICC Cricket World Cup the refurbishment of the Viewford stadium the Mindo Phillip Park and Marsha and Marsha Grounds the Bellevue Plainfield and the Grozily Plainfield 9. Construction of the National Aquatic Center 10. Housing developments in Rosu Kazaban Shop 11. Expansion of energy projects to seek alternatives that will diversify our energy needs and reduce our carbon footprint 12. The Labry Market 13. Rehabitation of the Rudy Jones Beach Park 14. The Gun Revere Community Center 15. The Northern Police Headquarters 16. The Northern Police Auditorium 17. Completion of the Custody Suites 18. The Kaldisap Community Center 19. Community Center for Cass Street's North and Cass Street's East 20. Completion of the Control Tower at the Iwanore International Airport 21. Commencement of the Terminal Building at the Iwanore International Airport 22. Private Public Service 23. Private Public Scythe Construction by GPH at Podcast Street and Souffle 23. The Canaries Market 24. The Miku Jetty 25. Community Tourism Projects 26. Repair to Fishing Complexes 27. The Viewport Entertainment Center 28. The... 28. The Halls of Justice 29. The Digital Infrastructure Enhancement 30. Investments in Upgrading Government Services to Online Platforms Additionally Mr. Speaker we shall seek to strengthen the resilience of our people and our people and our people the resilience of our fire service expand food security programs continue to support our youth and small and medium size enterprises and leveraging the opportunities the Blue Economy presents Mr. Speaker there will be something for everyone in this budget as we improve our infrastructure citizens can look forward to better roads safer school plans housing opportunities and increased support for the poor and vulnerable members of our society Mr. Speaker we intend to continue to expand our digital infrastructure by completing key projects that will improve the delivery of government services to the public and reduce the cost of doing business Mr. Speaker during this fiscal year investment from the private sector is expected to be robust particularly in the tourism industry Mr. Speaker I will have more on these and other initiatives during my policy statement next month summary of the 2024-2023 estimates of revenue and expenditure expenditure recurrent expenditure 1.502 billion capital expenditure 298.9 million interest payments 232.5 million principal payments 92 million total expenditure 1.89 billion revenue tax revenue 1.33 billion non tax revenue 146.8 million capital revenue 2.8 million grant 108 million total revenue 1.576 billion we project an overall deficit of 214.9 million after deductions of principal payments and refunds we forecast a 5.8 nominal increase in GDP for 2024-2025 to 7.3 billion from 6.9 billion for 2023-2024 Mr. Speaker as the fiscal position of our country continues to improve we expect that the administrative procedural bottlenecks and difficulties in accessing government services will be removed this fiscal year government will continue on the path of fiscal consolidation and economic growth however enhancing the quality of life of the people and creating opportunities for wealth creation will remain the main objective of this government recurrent expenditure Mr. Speaker for the 2024-2025 financial year the government is proposing to spend 1.5 billion in recurrent expenditure representing a 4.2% increase for 60 million over the amount approved for 2023-2024 this level of increase in recurrent expenditure over the last year indicates the government's commitment to improving the quality of life of the people the government's efforts coupled with a rise in investor confidence and growth in the private sector provide encouraging signs that real economic growth in 2024 is expected by ransom natural disaster or negative global economic event recurrent expenditure represents 79.3% of total expenditure compared to 77.7% approved for the 2023 fiscal year this increase in expenditure is reflected in all categories due to increased government services and higher rental payments Mr. Speaker the component wages and salaries represent the land share of recurrent expenditure amounting to 577 million comprising 460 million in salaries and 170 million in retirement benefits and is approximately 40% of the upcoming budget this amount is approximately 1.2% over the amount approved in 2023-2024 and 5.8% over the outrun for this fiscal year of which 38.5 million are salaries for staff working on various capital projects Mr. Speaker the fiscal year 2024-25 325.4 million has been allocated for debt servicing a decline of 5.8 million or 1.7% on the approved amount for 2023-2024 this decline is due to a reduction in principal repayments from 112.3 million approved in 2023-2024 to 92.9 million for 2024-2025 interest payments on the other hand are expected to remain high due to the increasing trend in variable interest rates for the fiscal year 2024-2025 total interest payments allocated are 232.5 million representing an increase of 6.2% over the approved amount for the previous fiscal year 153.4 million of debt servicing represents domestic debt while 171.5 million represents foreign debt Mr. Speaker I am pleased to inform this Honourable House that Senlucia continues to meet its debt obligations in a timely manner and on the terms negotiated Mr. Speaker I earlier indicated that this budget would have had something for everyone in particular vulnerable and marginal groups in our society as in the previous two budgets we will continue to provide the much needed support to the not-for-profit organizations supporting various humanitarian causes such as the homes for the elderly for persons with disabilities and other similar groups Mr. Speaker we will also continue to provide for our state-owned entities and regional international organizations of which we are apart so that the mandates of these organizations can be fulfilled among these organizations are the OECS CARICOM and the University of the West Indies as it relates to the University of the West Indies I want to reaffirm my government's commitment to meeting its obligations to this institution having trained me and so many of our sons and daughters or in many cases have gone on to make St. Lucia and the wider Caribbean region proud we can do no less if only out of gratitude and respect for this highly high quality educational institution Mr. Speaker transfer payments will increase by 2% to over the approved 223.4 to 243.4 million or an increase of 3.2% over the outrun for 2023-2024 Mr. Speaker this category goods and services is the second largest expenditure component of the budget which represents 23% of government expenditure for the coming financial year 441.3 million has been allocated to this category representing an 8.8% increase over the amount approved in 2023-2024 the main items of expenditure that account for the increase are goods and services associated with ongoing capital projects like the Millennium Highway Road Construction and St. Jude Hospital in both cases the increase system from higher global prices in sourcing supplies and materials other increases in goods and services are increased in rental payments for orange grove plaza new requests for accommodation for government offices proposed implementation of the tax administrative software upgrade of the government budget module and the replacement of smart stream financial system for which technical and software support is no longer provided in addition allowances have been made for the establishment of a separate ministry of national security and a high commission in Ottawa, Canada Mr. Speaker this fiscal year will be the year of infrastructure in all its forms the details of which will be articulated in my policy statement next month Mr. Speaker as I mentioned before a concerted effort will be made to remove the administrative bottlenecks in the public service that continue to undermine the efficiency of government services Mr. Speaker as it relates to capital expenditure for 2024-2025 budget the government has allocated 298.9 million and 15.1% increase over the out turn for 2023-2024 it is important to note that capital expenditure constitutes 61.6% of the total investment portfolio of the government which is approximately 484.9 million the investment portfolio is a combination of total project expenditure comprising project capital and project operating and non-project capital of the total allocation of 484.9 million for developmental projects and amount of 130 million or 2 or 26.8% of the total is proposed for the department of economic development and the youth economy this amount will cater for payments to St. Jude hospital construction project 67.2 million the constituency development program 22.7 million disaster vulnerability reduction project 10 million economic recovery and youth empowerment project 6.2 million implementation of the street lighting replacement project 6.1 million Mr. Speaker the department of infrastructure ports and transport has been allocated 85.1 million accounting for 17.6% of the resource envelope for the fiscal year for the following major projects Millennium Highway West Coast road development project 41.7 million road improvement and maintenance program 10 million renewable energy sector 9.8 million St. Julian Arhant Highway 8.3 million Mr. Speaker this year the allocation for the department of infrastructure will be for new and current road repairs and construction payment for DFC contracts are excluded during the fiscal year 2024 payment to contractors for DFC projects will be the food because they will have been paid during this financial year this means that the government through management of his fiscal management of his cash and his fiscal resources could have found the 60 million dollars due to contractors that should have been paid in 24-25 can be used this year for new road infrastructure projects Mr. Speaker in my policy statement again I will outline plans for the road construction and repair programs idon't mind Mr. Speaker of the 47.3 on 9.8% of the developmental budget is also been proposed for the department of education for the coming year for the following projects solution human capital resilience project 16.4 million major repairs rehabilitation of school plan 14.2 million the OECS skills and innovation project 4.8 million Mr. Speaker the department of finance has been allocated a sum of 43.4 million or 6.9% of the developmental budget to facilitate the implementation of on leashing of the blue economy project 11.2 million the budget module upgrade and implementation 7 million Mr. Speaker my government is also proposing to allocate 29.8 million or 6.2% of the developmental budget to the department of health to support the health systems strengthening project 6.7 million the OECS regional health project 3.6 million project supporting post COVID-19 response 11.4 million and projects including the initiatives leading to universal health coverage Mr. Speaker consistent with the care in nature of this government the department of equity has been allocated a sum of 25.4 million or 5.2% of the developmental budget to facilitate the implementation of the home care program 9 million the Senusia Human Capital Resilience Public Assistance Component 5.3 million the BNTF 10 program 4.3 million and other social programs 6.8 million Mr. Speaker the minister of youth development and sports without lying the exciting projects in sports development including the semi-professional football league plans for the renovation of plain facilities island wide and preparation for the World Cup cricket matches to be paid in Senusia later this year Mr. Speaker these are some of the most significant projects however the ministers without lying the other capital projects in their portfolios during their presentations Revenue I now turn my attention to the revenue to be collected to finance the government's expenditure as outlined in the 2024-2025 estimates I am pleased to report that revenue collection is now back at pre-COVID levels we believe that revenue collection can be improved with a reduction in the administrative and procedural bottlenecks that currently exist for the upcoming year we are forecasting a collection of total revenue and grants of 1.576 billion an increase of 1.2% or 18.1 million over the approved amount in 2023-2024 and 8.4% over the amount collected for the end of this fiscal year the breakdown of revenue and grants as follows recurrent revenue 1.48 billion capital revenue 2.9 million grant receipts 108 million recurrent revenue Mr. Speaker recurrent revenue inflows are projected to increase by 61.9 million relative to the approved estimates of 2023-2024 reaching a total of 1.48 billion for the fiscal year 2024-2025 when compared to the revised estimates for the preceding year recurrent revenue would have increased by 99.6 million or 7.2% this increase is expected in part to be due to expansion construction activities in both the public and private sector and the multiply effects of continued growth in tourism the total amount projected for recurrent revenue will be in the form of tax revenue or 1.33 billion and 146.8 million in non-tax revenue tax revenue is forecasted to increase by 6.1% in comparison to the recurrent for 2023-2024 while non-tax revenue is expected to increase by 19.2% compared to the recurrent for 2023-2024 Mr. Speaker the increase in tax revenue will be influenced by the continued recovery in economic activity increased tax compliance removal of bottlenecks in key areas and expansion of private sector enterprises the increase in non-tax revenue is to be influenced by transfers from the CIP Infos Mr. Speaker an analysis of the tax revenue category is as follows tax on incomes and profits tax on incomes and profits are projected to be 325.2 million 7.9 million above the revised estimates of 2023-2024 we expect this category to continue to perform well as economic activity expands the projection for the main items under this category is as follows income tax from corporations the revenue from income tax from corporations is expected to generate 119.4 million for the financial year 2024-2025 representing a 4.8% increase above the year in outlook for 2023-2024 this performance is indicative of the continued recovery that is taking place in the private sector revenue from individual tax is estimated at 128.7 million this represents a 2% increase over 2023-2024 revised estimates the increase is attributed to higher employment levels income tax rise projected at 27 million the projected increase is also expected to be driven by increased economic activity taxes on international trade in action taxes on international trade customs duties are projected to increase by 3.4% to reach 283.8 million in 2024-2025 up from the revised estimates of 274.5 million in 2023-2024 of the total amount to be collected 157.6 million is expected to come from import duty 119.1 million from excise tax 1.7 million from throughput charges and 5.4 million from the passenger facility fee the improvement in outflows from this revenue category is driven by general increases in the cost of imported goods and increases in the volume of imported goods associated with growth in the economy for 2024-2025 taxes on domestic goods and services are expected to generate 711.3 million which is 9.2% above the out turned figure for 2025-2024 this category includes value added tax that on domestic activity collected by the in revenue and excise tax receipts from that collected by the in revenue account for 51% of revenue from this category and are projected at 260 million which represents a 3.9% increase relative to the 24 outrun that from international trade transactions collected by the customer excise department is projected to yield 210.3 million in 2024-2025 which is 7.1% above the outrun of 196.3 million in 2023-2024 this is expected as the country experiences growth in key sectors as construction, tourism, wholesale and retail health and security level Mr. Speaker the health and security level is projected to record an increase of 17.3 million dollars to reach 35.4 million dollars for the fiscal year which is 10% of health and security expenses Mr. Speaker you may recall that the health and security level for 2023-2024 collected we collected 18 million we expect to collect for this year 2024-2025 which is for the entire fiscal year we expect to collect 17.3 million only because last year the levy was implemented in July and this year it will be implemented for the entire year we do not forecast any increases in the health and security level nor do we intend to increase the goods that the goods and services that apply the health and security level health and security expenses for this fiscal year are projected as follows provision of health facilities 160.9 million capital projects central hospital reconstruction project 67.2 million Sufran hospital this year 2.1 million health system strengthening project 6.8 million OECS regional health project 3.6 million capital health coverage 2.6 million other projects on the health 16.8 million total provision 260 million national security provision of national security services 86.3 million capital projects 3.7 million total provision and Mr. Speaker we did not include the police stations nor the expenses involved in the construction of the northern police headquarters total provision for health and security 90 million total health and security expenses for this year 350 million dollars and from this amount we expect to collect 35 million from the health and security levy which means that we have to find at least 300 million dollars to fund health and security so the health and security levy only contributed only intends to contribute only 35 million out of the 350 million dollar out of 10% of the expenses so the health and security levy will only contribute 35 million dollars to the treasury of this country and out of it we need to spend 350 million dollars for total health and security expenses Mr. Speaker airport tax is expected to record an increase of 8.2% above the 2020 feet 2024 autumn to reach 39.9 million for the new fiscal year this category will be positively impacted by an anticipated increase in store over arrivals for the period 2024 2025 which is estimated to be over 6% increase in tourism arrivals service charge on imports is projected to increase by 8.2% or 75% above the autumn for 2023-2024 to reach 118.1 million for the new fiscal year the projection will be influenced by higher prices and increased volume of imported items stemming from the economic growth that we will experience in 2024-2025 Mr. Speaker revenue collection from taxes on domestic goods and services account for 48.2% of total revenue total recurrent revenue non tax revenue the 2024-2025 projection for non tax revenues amount to 146.8 million or a 19.2% increase over 2023-2024 autumn the following are the major components of non tax revenue the citizens investment program in the projected autumn for this year 2023-2024 the CIP contributed directly to revenue 45 million Mr. Speaker as compared to the approved estimates of 90 million Mr. Speaker the reason for the difference between the approved estimates and projected autumn for 2023-2024 is due to an increase in demand for the real estate option rather than donations that go directly into the national economic fund or government born options Mr. Speaker 64.1 million was received by the national economic fund from that amount 45 million was transferred directly into revenue the balance is available for use according to the objectives of the fund in addition 39.5 million was received from bonds compared in bond financing this year this year a further 17.4 million was used to fund security healthcare social development and infrastructure development in reality Mr. Speaker the CIP contributed to the economy of Senusha 121 million dollars in 2023-2024 Mr. Speaker was projected that the CIP will contribute directly to revenue 75 million audited financial statements will be made available to the house as stipulated by law during the policy statement I will provide a comprehensive explanation of the future of the citizenship by investment program income from commercial property tax revenue collections from this category 55.1 million for the new fiscal year Mr. Speaker there are some areas in which we anticipate a decline in non-tax revenue for 2024-2025 in transit fees this revenue line is expected to decline in the short term as these fees will be invested in a PPP arrangement to fund the development of the cruise ports in Kashi and Sufre an arrangement expected to start at the commencement of the 2024-2025 fiscal year the sale of goods and services revenue collections and the sale of goods and services are projected to record a sum of 55.4 million reflecting a decrease of 8.4 million or 14.2% below the order for 2023 this is due Mr. Speaker made it to the fact that hospital medical bills are not being paid by the people when they attend our hospitals so the fees that are coming for that that sector are not received because the fees hospital expenses are not normally paid are not paid by a large percentage of the people of San Misha grant receipts are estimated 108 million reflecting a 15.8 million increase over the order for 2023-2024 fiscal year the major contributions to the grant inflows are Republic of China on Taiwan 43.9 million the UK Caribbean Infrastructure Partnership Fund 27 million the Caribbean Development Bank 5.6 million the Government of Saudi Arabia 5 million the Foreign Conveyor Development Office 2 million the United Nations Environmental Program 7.6 million the European Development Fund 5 million the United Nations International Children's Education Fund 2.1 million the Pan American Development Organization 1 million Mr. Speaker of revenue and grants and expenditure for the 2024-2025 budget year will result in an overall deficit of approximately 250 million this deficit is due to the large infrastructure projects to be implemented this year as economic activity expands we expect a reduction in the fiscal deficits over the upcoming years the financing gap estimated for the upcoming fiscal year will be covered by a combination of foreign and domestic borrowings the government's debt strategy is to secure external borrowing on concessory terms with 243.8 million to be secured from developmental partners and the remainder 64.1 million sources from bonds and charges I agree that Mr. Speaker the government's debt strategy is to secure external borrowing on concessory terms with 243.8 million to be sourced from the development partners and the remainder 64.1 million sources from bonds charges bills and notes some of the external borrowing already identified and sourced include Caribbean Development Bank 42.6 million International Development Association at the ID 141.5 million the Republic of China on Taiwan the Exim Bank 2.1 million the Chaikom Development Fund 3.3 million the Kuwait Fund for Arab Economic Development 4 million the Government of Saudi Arabia 30.4 million Canadian Clean Energy and Forest Climate Facility Fund 2.9 million Mr. Speaker the total budget will be financed as follows revenue and grants 1.576 billion loans 244 million short term borrowing 200 short term borrowing 64 million total borrowing total 1.884 billion refunds 10 million total financing 1.894 billion Mr. Speaker let me remind horrible members that the policy framework which those 2024 2025 estimates have emerged will be articulated in presentation of the appropriation bill which we will place before the House of Assembly for the bit next month April Mr. Speaker the process leading to the presentation of these estimates have required months of consultation discussion and long working hours I therefore want to send the staff of the various ministries and agencies who have been involved in the process particularly the staff the prime minister the ministry of finance economic development of the youth economy a special thanks to the budget office who spearheaded the process on complied and compiled the estimates and expenditure for 2024 and delivered the book eight credits before delivery today Mr. Speaker special thanks to you and your staff and staff of the government information service showing all the necessary arrangements have been in place for the conduct of today's proceedings I want to express my appreciation for the work done by the staff of the national printing corporation and the prime minister in the ministry of the office of the prime minister who have the staff the national printing corporation Mr. Speaker you will be pleased to hear has been relocated to new premises after years of neglect and indecision by the last administration Mr. Speaker the immigration department has also been relocated into new premises spearheaded by the minister of home affairs so the immigration department a problem that has been inherited the immigration department it has not been relocated to new premises Mr. Speaker Mr. Speaker the staff of the national printing corporation that they are printing equipment that they are printing equipment will be upgraded in the year 2024-2025 Mr. Speaker as I conclude I wish to express my sincere gratitude to the people of this country the people of St. Lucia particularly the constituents of Kashmir's east for allowing me to serve as a member of parliament and prime minister of St. Lucia this government remains on the third and focused on the third and focus on the development and implementation of policies and programs that will best meet the aspirations of the majority of the people of St. Lucia Mr. Speaker we will not allow lies and misinformation to detours we shall remain focused Mr. Speaker the results of 2023-2024 estimates have shown the positive impact of the government's policies and programs over the years figures do not lie the estimates for 2024-2025 will in a similar way continue to be positively impactful on the lives of St. Lucia I therefore want to thank you Mr. Speaker for the opportunity to present these estimates for 2024-2025 to this Honourable House and look forward to the sitting on April 20 when the government's policy statement will be presented I thank you Mr. Speaker