BVI News

BVI avoided $57 million deficit

Premier Andrew Fahie has revealed more about the state of the BVI’s economy, stating that the territory has been able to avoid a $57 million budget deficit that was initially projected for due to the COVID-19 pandemic.

Speaking in an interview with ZBVI radio, Premier Fahie said the projected multi-million-dollar deficit first announced back in August when he presented a supplementary budget to the House of Assembly.

“I gave a state of the territory’s finances in the House Of Assembly and I was utmostly surprised when I heard that the Premier is not doing so. I did that when we were doing the supplementary budget. At that time, I stated that if we continued to collect the shortfall that we were collecting, we were on the verge of having a $57 million deficit … given that all industries were closed,” Premier Fahie said.

Zero deficit by year’s end

However, he said based on his government’s handling of the territory’s stained income streams, the BVI is now positioned to “significantly and almost totally” cut down the the projected deficit.

“We have used the revised budget based on the income and … now we are moving towards having a zero deficit by the end of the year because of how we have been able to manage the finances of the territory,” Premier Fahie said.

He didn’t give a figure to indicate the territory’s current deficit but he reminded persons that certain sectors within the BVI economy were struggling before COVID-19.

Fahie said one of those sectors was the financial services, which he said came under pressure because the 2019/2020 protests in Hong Kong.

“And I dare to say that there is no country in the world that can say they have survived this COVID-19 in a different way from how we are doing it. We do not want persons out there trying to insinuate that it’s because of poor management. It was not in our view that in 2020, we’d have to deal with COVID-19,” Premier Fahie stated.

How COVID hit local economy

The BVI’s borders have been closed to visitors for more than seven months due to an outbreak of COVID-19 in the territory. This closure severely affected the tourism industry which contributes some 40 percent to the country’s Gross Domestic Product.

A number of businesses also had to reduce their hours due to curfews imposed to prevent the spread of the virus. This has led to a rise in unemployment across the territory.

With a significant drop in the number of COVID-19 cases, the BVI is scheduled to reopen to visitors on December 1.

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32 Comments

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  1. Reality Check says:

    Part of the reduction of expenses is a result of no one or businesses receiving the promised aid. Not one of my furloughed employees have gotten anything and all that my business received was a letter stating we would be getting a grant but no indication of when; letter was a month ago.
    Thank you Premier for screwing the businesses and jobless workers to give you something to crow about on the news!!

    Like 68
    Dislike 6
    • Truth says:

      Be careful when you hear politicians say things like this. Remember the premier was the one who came up with the budget. It’s not uncommon for them to overstate the situation so that later down the line it appears that they are doing something miraculous. Also, take note that the majority of businesses and individuals haven’t received aid that was projected.

      Like 33
      Dislike 1
    • Expenses says:

      There is and was no reduction in expenses. The Foy has kept the government workers paid while the rest starve. This is how you stay in power. Look a Cuba, China and Venezuela. They are the Foy’s role model and plan for the Territory. Keep out the tourists and the prying eyes. Keep the people beaten down till they are nothing. Have a good life. Your coming days are dark.

      Like 34
      Dislike 1
    • Please says:

      You all are so ungrateful. The Treasury can only print X amount of checks in any given day. Staff is working around the clock. The government didn’t have to give you a farm thing.

      Like 5
      Dislike 38
      • Add bad printers to the BVI problem list says:

        Our office printer does 40 pages per minute. Factor in some downtime and you can still print checks for every man, woman, child and business in the BVI inside of a week.

        Like 24
        Dislike 1
      • Javo says:

        The Government didn’t give us anything. It is OUR money in the first place!

    • @Reality Check says:

      What you say makes sense but remember the aid was in the form of $40 mil from Social Security, none of it came from Central Government.

      Like 21
    • Albion says:

      So what is the budget deficit? He tells us what is *wasn’t* (ie. not $57 million), but why not tell us what the actual number was? All he says is that they “cut down” on the projected deficit, but cut it down to what?

  2. Hmm says:

    This is good news once its true.

    Like 11
    Dislike 15
  3. Styles. says:

    Dear Andy Foi

    You keep blowing the trumpet on your performance. But you are completely ignoring that so many people are getting hungry and are out of jobs.

    You are not addressing any of the issues but are complimenting yourself every chance you get.

    Have you forgotten that you are appointed by the people? Why are you ignoring us and our cries for a way forward?

    Like 60
    Dislike 3
  4. Bulls**t says:

    Once again the Foy talks and rambles. He says things are good but provides no numbers and no backing. He likes talking to the people of the BVI because they suck up his l**s like a drug addict. This Foy can’t be trusted and he is determined to take the BVI to a level that the people will beg for his Chinese savior. You are all the walking dead thanks to the Foy.

    Like 38
    Dislike 2
  5. Rofl says:

    A paper tiger with teeth only for those who dont agree. These words mean nothing to the tourism and service sector in complete disarray and the hundreds on the breadline while the other Caribbean nations stay ahead of the 8 ball and BVI is still on the bench.

    Like 34
    Dislike 2
  6. VIP MUST GO says:

    Poor leadership, poor handling of the territories affairs, poor planning. No vision. All the ground breakings, lavish ceremonies, wasteful spending, contract signing (C—- Cl—, Barge), please. We are waking up. We are not listening to your fancy talks any more. VIP MUST GO!

    There are hungry people/families out here. Do you care? We are watching you and it will tell at the polls. VIP MUST GO!

    Like 31
    Dislike 1
  7. Kind liar says:

    I cannot believe a word coming from the mouth of the Premier. I am very sorry. If we cannot recognize a liar when we hear one then we are really doomed as a people.

    Like 32
  8. Lovwe for my Country says:

    Mr. Premier can you honestly tell the public that you did not use the Social Security monies to help the Government with its recurrent expenditure? We know that the Government is having serious issues with funding. Lots of vendors are not getting paid and the stimulus for businesses are not being given. You did not give any figures to back up your statement and if what you are saying is factual, you should have given a financial breakdown. We do not believe you!

    Like 40
  9. LB says:

    People out here hungry. Can’t pay bills. Social security writing cheques for $100 to people who only getting 1 or 2 days work a week. Bills piling up as all moratoriums have stopped from banks. Electricity and Water still charging. Landlords still collecting rent. Insurance in cars, health and homes still due. Land taxes have to be paid. But people on half salary and 1 day a week work schedules. Meanwhile the emperor here strutting around with his invisible coat on. This country is in need of real leadership. Our economy is going down the drain fast and people bragging about erasing deficit. I know when the VIP was a proud and productive party of the people. Laity and Ralph rolling in their Graves now.

    Like 36
  10. Accounting says:

    Ok, so let me get this straight! The VIP is currently clearing old bills that were left by the old administration to the tune of millions of dollars, the Government hasn’t laid off any staff and are still paying them full salary over the past few months. We have construction projects ongoing, consultants being paid, COVID issues being funded and so on. So with no income but spending more or less the same money, how did we ‘avoid’ the $57 million deficit? Am I missing something here? There is no way that we can keep all staff paid, no lay offs, keep all rent paid, no reduction in renting private spaces for Govt business, govt vehicles on the road, PWD/WSD and others are all out working and being paid. How do you shave $57 million without cutting anything? The talk sounds fancy but peel back the layers and you realize that it makes no sense at all. Add to that they are bragging about reinstituting the scholarship program, which is a good thing but again, how do we increase spending, nothing significant being cut, revenues way down but will have a zero deficit by year-end?

    Like 35
    • Good points! says:

      Why do you think Wheatley mentioned the government accountants are afraid going to jail?

      If you can spend this much and still can come up with a positive result? That’s criminal accounting!

      Like 21
  11. Heckler says:

    These politicians in the news every day with press releases and lives signing this and proclaiming that. In the end it is obvious they are just about themselves and their cronies. Smokescreens and a sprint for less oversight by the UK for corruption under the guise of independance is the agenda. A blind donkey with wooden glasses can see this ruse for what it is.

    Like 20
  12. BVI St Kitts says:

    Everyghing the man in st kitts do Foy follow. The BVI is Not St Kitts and St Kitts is not the BVI..What work in St kitts will not work in the BVI. In St Kitts he listen to no one, u against the government you starve.. Seems like Foy following that pattern..Not good!

    Like 14
  13. Strupes says:

    1. Why would we believe him about the Territory’s finances? Show us the books.
    2. If what he says is true: given the shut-downs on island and the border closures, which “pillar” of the economy continued as normal (and rescued BVI yet again)?

    Like 13
  14. Trouble with the truth says:

    Sir: You are making contradictory statements . One minute no money because of the former debts of the NDP a next statement no projections of deficit. Make up your mind , which is it ???!!!!

    Like 16
  15. Figures please says:

    Please give us some details about the earnings of the different revenue streams that make up for this shortfall.

  16. #666 says:

    Did y’all saw when he post with his sister and give her (envelope) stimulus check. That’s speak for itself.

  17. Smoke & Mirrors says:

    One can manipulate the numbers to look many different ways. This sounds fishy

  18. smh says:

    This must be just like the millions he claims we lost cause governor would not sign the ganja bill………Seriously, Can it get anymore ridiculous!

  19. WOW says:

    This is clear that only the negative blogs against the Government is making it on this site.

    Like 2
    Dislike 2
  20. Rubber Duck says:

    They cur back some of their wilder spending is all. They had a big surplus because of rising taxes and increased annual company fees before Covid
    Little doubt now that this is a national socialist style government bent on creating an independent authoritarian state. Which our sensible electorate will never let them do.

  21. Its BS says:

    The only reason you have money is because you took the SS money and you haven’t given it out PLUS you now get 50 from every employer and another 20 from each employee to the IR for statements of earning and good standing. Thats $450,000 right there.
    Loads of people have still not got their stimulus cheques, especially those with companies in districts that aren’t a VIP one.

    Literally all the NDP needs to do is find itself a full slate of candidates in the next 6-9 months and start looking out for the people in their districts and they will be in next election because going for the low hanging fruit and starting vanity projects in the middle of a depression is a sure way to get you out at the next election.

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