Anguilla receives EC$11M in Budget Support from the EU

anguilla-flagAnguilla News – Local & Regional by AnguillaLNT a SMG Product – Anguilla receives EC$11M in Budget Support from the EU
Anguilla has been the recipient of EC$11.7 million (€3.5M) from the European Union under the General Budget Support Programme of the 10th European Development Fund which has been paid directly to the state treasury. This is part of an overall total of approximately EC$36 million (€11.6M) the EU has been allocated to the territory.

The grant aid will go towards the continued reform of the Public Finance Management systems and the implementation of a credible Medium Term Fiscal Plan to provide increased incentive for private sector entities to invest in Anguilla.Head of the European Union Delegation to Barbados and the Eastern Caribbean, Ambassador Mikael Barfod said: “Our aim is to assist Anguilla in restoring macroeconomic stability, stimulate sustainable and diversified economic growth, to support social development and social protection, as well as reduce the country’s environmental vulnerability.”

Since the passage of the Fiscal Responsibility Act 2013, government is required to put systems in place that would ensure borrowing limits are implemented by 2017. This aim of this new act is to strengthen fiscal management, improve fiscal transparency and incorporate the Fiscal Framework for Sustainable Development.

Tax reform is also underway with the establishment of a property tax unit, collection units and a taxpayer services unit.  These reforms are expected to widen the tax base and increase Anguilla’s fiscal space.

As it relates to providing an enabling environment for foreign investors, there are plans to review the operations of the port authority and review the governance mechanisms of some statutory bodies, in particular the Tourist Board. Efforts to enhance the country as a tourist destination will entail the authorities to look at reducing the journey time and placing customs and immigrations officials at the express ferry port in St Maarten. They will also seek to ensure that St. Maarten is used as an alternative access route to Anguilla when vacations are booked.