2024 national budget lacking innovation to build revenue?
A close examination of the national budget for 2024 reveals a notable absence of fresh ideas, innovations, or novel revenue streams to bolster the territory’s financial standing.
This observation lends considerable weight to criticisms voiced by certain Opposition members who assert that the budget fails to introduce new or innovative approaches for generating money that the territory needs.
When BVI News examined the budget presentation, it was found that in 2024, the government is expecting to earn revenue from:
- Hotel Accommodation Tax
- Motor Vehicle Rental Tax
- Liquor and Still Licences
- Cruising Permits
- Tourist Arrival Levy
- Trade licences
- Banks and fiduciaries
- Money Transfer Fees
- The Registry for Corporate Affairs (which pertains to our financial services industry)
- Income and Payroll Tax
- Taxes on Goods and Services
Premier Dr Natalio Wheatley outlined that the government is expecting to collect increased funds from these sources. However, these are the same sources from which the territory always gets revenue. No new ones were announced.
In recent years, consecutive BVI governments have been pushing the narrative that they need to innovate in order to identify new revenue sources. Premier Wheatley also used the recent budget address to repeat this narrative:
“It is clear that, on one hand, we have to increase revenues. We have to exercise our innovativeness to draw out more business from our existing revenue streams and we have to develop new ones,” the Premier said during the 2024 budget address.
Despite admitting that new ideas need to be found, the Premier did not highlight any new innovations his government plans to introduce. He did, however, state that the government is trying to be more efficient at collecting revenue from the streams that exist.
“Measures are being put in place to improve the efficiency and effectiveness of collecting revenues that are owed to the government. These include the electronic tax system known as Sigtas as well as pending policy decisions on good standing,” Premier Wheatley revealed.
To bolster the territory’s revenue, Premier Wheatley also said the government will be borrowing in the region of $100 million to address critical development needs in the territory.
In the meantime, the innovative ideas to increase the territory’s revenue are yet to be seen. Earlier this year, the government allocated funds for the controversial “Non-stop Concert” with the explanation that the event was part of efforts to increase tourism revenues for the territory.
However, during the budget address, there was no mention of upcoming plans to make events and shows a major revenue earner for the territory in the year ahead.
Residents are set to get more information on how the 2024 budgetary funds will be sent when the government publicizes deliberations at the standing finance committee meetings where the budget is currently being scrutinized.
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Why are past and present governments apprehensive about inviting Foreign Investors to our territory? Foreing Direct Investors will foster economic growth for the territory and for the investing country. Foreign Investments to reingineer and reinvigorate the economy is the way to go. We already have the economic streams. Manufacturing, Roads, Airport, Hotel Industry, and Health Care. These are areas where FDI can have an economic impact and give us upscale lasting improvements. FDI will be the injection that will give new life to these entities that is barely breathing. I will emphatically state we are on life support, and will continue to limp and drag barely getting by. Well some one noticed that the budget lacks innovation, there was nothing new. They just have their tempplate which is presented every 4 years with some changes to the figures. No meat, No Innovation, No new streams of Revenue. WTF. How long can we continue like this? We need Leaders who are going to look outside the box, have an interest in the territory and not SELF and CROONY interests. This country belongs to all of us, not some of us.
TALKING WON’T BRING CHANGE, ACTIONS WILL
because our leader dont have a clue…We are stuck in the` mud so to speak
Don’t worry about income just spend spend & party. After all it is called the VIP 🙂
All burdens on businesses and then people wonder why the cost of living is increasing. The govt plan for this is to raiae all civil servants pay without figuring out how to pay for it.
Governments don’t innovate. That’s the private sector’s role. A government regulates, taxes and offers social programs in as efficient and cost-effective means as possible. Unless you have a R&D department and willing to waste millions of dollars the government doesn’t have in the name of innovation. In the BVI, we have a messed up rationale when it comes to what a government’s role is. That’s why we vote in clowns and stupid people that can’t balance a budget.
I was thinking along the lines that the private sector should be the ones being innovative with new business ideas. Then the government would tax they businesses resulting in increased revenues. It is my understanding that the premier focused on having systems in place to improve on the efficiency of tax collection. That should increase revenues in my opinions.
Yes certainly the innovation should be done by the private.
Some one talked about having foreign investors invest and I thinking they again had some solid points. I can imagine casinos and some thing along the line of some kind of amusement park which is uniquelly design for the BVI. These would have to come from Foreign Investors though. Then the government can get more tax through and increase they revenues through these means.
Think positive. Stop lying for a change. We will survive. The VI ain’t going anywhere. We can make it happen. Life is real. We are conquerors. Tomorrow is a new day. Thank God for life. Without Him NOTHING is possible. I’ll trust God that my beloved Virgin Islands will be fine in the long run. Lots who said its going to hell 40 years ago still living here Local,foreign,transient, overstayers pimps and prostitutes. The V I dey good. Might get little rough sometimes like else where but we dey good.I man ain’t going nowhere anytime soon.
Decrease all the recurrent expense such as property rental and salaries.
In regard to the 11 revenue streams
1,2.4 & 5: Discourage tourism
6: Discourages foreign investment
7: Discourages banks and other fiduciaries
8: Totally immoral and unethical
9: Not dependable revenue due to market fluctuations
10:NO taxation without representation so only voting belongers should pay this tax NOT persons with work permits.
11: Unnecessary burden on residents and visitors
A deadbeat budget from a deadbeat government
Lead by someone with 487 votes!
the bvi is a sinking ship