Revenues collected not enough to fund government’s priorities
Premier Dr Natalio Wheatley said revenues collected by the government currently are insufficient to cover its priorities.
He suggested that the government needs to explore new and more aggressive forms of revenue generation.
“That means a diversification of the economy, that means the strengthening of the tourism sector, that means seeking new industries and of course we have been speaking about them for some years now. It’s time to deliver on those promises of a diversified economy,” Premier Wheatley stated.
The previous Andrew Fahie-led Virgin Islands Party (VIP) government had proposed a number of revenue generation initiatives such as the introduction of cannabis legislation but this never received assent by the then-governor Augustus Jaspert in order for it to be made law.
There was also the passage of the Gaming and Betting Act which was set to facilitate online gambling in the BVI, among other things.
Meanwhile, Premier Wheatley rattled off a litany of expenditure faced by the government over the past few years including repairs to the RT O’Neal Administration Complex, the Cane Garden Bay Sewerage system, and immigration detainees, among other things.
“All of this money was necessary to be expended,” the Premier said in the House of Assembly (HOA) yesterday.
He said a conversation needs to be had with the various ministries and departments of government moving forward as well as with the people of the BVI about how much needed funding can be provided in vital and critical areas.
He also noted that attention needs to be placed into optimising the government’s revenue collection methods and whether technology can be used to improve this area.
Dr Wheatley said the government also needs to look at its liabilities and cutting out unneeded expenditure in order to become more efficient and effective.
Potential government bankruptcy
The Premier also indicated that the government needs to look at the issue of pension reform, an issue which he said could likely end up bankrupting the government in future years if it is not addressed.
He said the country is at a critical stage when considering the pressure that’s placed on the territory’s financial services sector, its growing population and growing infrastructural needs.
“We have to take action now if we are going to continue to keep the lights on, so to speak, and continue to meet our obligations, to continue to employ our hard-working public servants and to continue to provide the public services that people require in this modern Virgin Islands,” the Premier added.
Copyright 2024 BVI News, Media Expressions Limited. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.
Slow Wande and the Unity Administration need to go. This is troubling. Slow Wande isn’t a finance guy. None of them are. What the heck is he doing as Minister of Finance. Now he looking to separate himself from all the bad decisions made by the Drew. VIP always moved like a group. NDP was no better. No ideas, just F@cking idiots
But the VOTERS allowed Drew to be one and he too wasn’t a finance guy. By the way, all them finance guys “Give Away” the money too.
Which finance guys are you referring to? None have had a proper financial training
Ronnie Skelton was a pretty good finance minister and was within his field. However, the lady that wears the pants demanded control and the rest is history (millions and millions went to the Pier Park and plane).
Actually Ronnie served at a time when money was flowing from financial services. He wasn’t scrutinies as he should have been. I don’t know whether he was chosen as minister of finance on account of his training/ ability or as he has interest in a number of businesses in the BVI via his family.
We have done a pi** poor job of demanding these parties disclose their criteria for ministerial positions and the agenda to determine for ourselves whether the person is doing a good job. This has in part lead us here. The other is the persons being not being honest as to their capacity.
The proof is in the pudding, cumulatively they all did a piss poor job given where we are now.
Slow wande is probably the least trained one we have ever had. Given the external and internal issues, we are in for a wild ride under his administration. He needs to be honest and say that he can’t do this. The look on his face says, oh my God I actually have to do something other than give empty speeches about colonizers.
The BVI government has an income of $13, 500 per head annually. That is at the same level as the UK or Italy. 2.5 times as much as Antigua , nearly twice as much as Singapore.
They don’t need more money. They need less theft. less graft and a lot more competence.
No lies detected her. These are the painful facts and truth.
See what happens when the drug money dries up?
BVI
Bankrupt Virgin Islands
More of that offshore banking money needs to stay in the territory. We should be a mini Switzerland by now.
Amen!
You tried opening a bank account in the BVI as an offshore company lately?
The banks are perhaps even worse than the govt.
Yes, so people can stand for 3-4 hours to sit down in the bank and discuss their money with an overweight woman that stares like a dear in headlights. BVI is where the corporations are manifested. The money goes into any bank anywhere in the world.
The financial sector has made billions to the gov millions, most $$ sent offshore (Jersey) and bvi doesnt earn a dime on majority. All those lawyers making huge salaries overseas doing bvi work and bvi doesnt get a dime. Charge $100k a year for every overseas Lawyer/accountant doing bvi work and $1mil a year for any company/law firm doing bvi work. Of course they can afford it.
All chiefs in bvi take small local salaries ($30k/mth) and pay themselves huge tax-free dividends yet grumble about giving back to the community.
@SheepSwapp. STFU. You really have no idea.
Yes he does
He works for the financial sector
Different cr**k, same story
Turning up and telling the truth at the COI would of saved the BVI tax payers $8000000 , I’m sure the readers could send in a few other helpful suggestions!
Collect the money you’re supposed to collect!
Who is paying for Fahie’s defence costs?
but i am willing to bet that it have enough for when the campaign starts
Just suspend the salary of the entire civil service for a couple of years and the treasury will be full of money in no time. Civil servants can still be employed and work but not get paid for it for a few years until this fiscal crisis is over.
you are crazy
Suspend your donkey! Because you need work permit renewal and it not be worked on to your satisfaction. Everybody want to run the Territory that doesn’t belong.
Or just cut the civil service in half. Most civil services around the world are not efficient, but BVI’s civil service takes inefficiency to a whole new level! The same work could be done by half the staff doing a proper job.
For tru
Our staffs are so lazy and incompetent. It’s by grace we get
Stuff done here
In three years look what they have brought the country to. We the people got caught up in their lies and voted out the competent people and put in a bunch of fools. Did you hear what he said? We have to try to keep the lights on? You even heard that kind of talk about our country before? Bankruptcy when we were sitting on millions in 2019? 8 Million alone spent on lawyers for the COI with no benefit whatsoever!
Priorities? What are your priorities?
– paying so called fisher folks without a boat and farmers without a farm
– paying your friends with the barge
– paying Skelton Cline
– paying for garbage pickup during covid
– increased benefits for hoa members?
Tell us? What are your priorities.
And don’t blame the former premier because you didn’t vote against any of the above wastes of money.
So start with the million dollar lift which is definitely not a “priority “
Also pension reform, didn’t you guys in the HOA just vote yourselves pension after only one years service ????
This decision only highlights why this so called Unity Government, with Slow Wande at the helm, is just a continuation of the VIP and NDP administrations and their combined dumb levels of thinking.
Not so new faces but certainly old ways of going about things. We need new elections and this band of thieves need to go (and not allowed to run again for at least 15 years)
Like C******* family sneaking in their food store supplies without paying duty. How many still dont pay their taxes, ss, ins, leaving their employees to pay or get deported. What about that shipping company being paid $300,000 a month to allegedly let the drugs pass? Time to examine the books. UK really allow clowns like this to continue the corruption. Mr S******, is it true you ran a business importing strippers?
Thank you. My exact thoughts. He just wake up yesterday? No duh the economy need to be diversified. He in government for how long? With his single-minded marijuana no vision ignorance. Get rid of the darn elevator. BOY BYE!!!
Open back up the marine sector, millions was lost to small businesses who in turn pay their taxes and feed your belly!
Due to the bill performed by Customs it will take years to rebuild confidence in the region!
Bvi chased all charters away to us. Thank you. Thank you. Thank you.
Now with new regs, work permits, extra fees, they are staying away. By the hundreds. Look across the water and see all of the boats and people spending money on them. YOU LOST THEM.
Still killing it
“He suggested that the government needs to explore new and more aggressive forms of revenue generation.”
In a down turning economy you’re looking for more revenues? You ever thought about cutting back on revenues?
Alternate forms of revenue generation? Or, is your goal to raise taxes and costs to fleece an already reeling hospitality and financial services industry?
That lack of creativity and forethought is sickening! Just keep playing the same damn cards over and over again expecting all will magically fix itself! Look in the f-ing mirror Bro and you will see the issues clear as day!
Serious, I suspect you mean cut back on expenditure not “Revenue”.
Yup. My bad. 🙁
Like the ports authority crook did, double, triple all fees, hitting the people hardest. Time the Uk stepped up and ended this circus.
We just need to add an income tax on everyone in the bvi. Then we’ll get some more money
… y’all have money to fund all of the nonsense projects you currently doing though.
That could have been part of the money laundering scheme. Give the contracts to the businesses they own and jack up the costs on the invoices to keep the profits. Who stole the cookie from the cookie jar AGAIN??!!
The certificate of good standing fiasco imposed on expats applying for work permits just highlighted how many local employers are not paying their workers’ contributions and taxes over to Government. Collect what is due and spend it wisely!
Money for an elevator, suggesting a line for sports in budgeting now today bankrupt. So confused. All the monies recouped after criminal investigations should put the government back in healthy standing. These ppl are ruining the country for personal gain.
Hope he doesnt go look to suck more money off the non belongers – all the tax on money sent home and hike in permit fees all. their greed knows no limits when they lining they pockets.
Look out people they might raise you property tax , they are paying all these rent fix the complex, the BVI seems like it’s broke, open up west end terminal so custom’s can collect more revenue,open Carrot Bay post office so the people in the west can pay there land tax,water bill and let light bill,the government have to make it easier for people can pay there bills.
Cut some govt spending. Start with civil service layoffs. Stop paying over market rate rent for building you dont need in town.
some of them go work 2 or 3 days per week……
Yes, I’m confused too. Talk-Talk-Talk, that’s what I hear from elected official… Always the same promises.
“That means a diversification of the economy, that means the strengthening of the tourism sector…
Yet the Customs dept. under your personal portfolio has served ONLY to do major damage to tourism. Rein the Customs parasites in and get them off the back of the charter sector! Let the tourists come in and spend spend their $$$. Do you recall Hurricane Irma? We’ve really only had one good tourism year since then, and when it all looked good this past Autumn, Customs raised their ugly, money-grubbing heads.
“… that means seeking new industries and of course we have been speaking about them for some years now.”
New Industries?!? Nothing about the territory’s trade, labour, immigration and customs duty policies does anything to encourage any kind of new industry nor investment – ZERO. Think about appointing a ‘development czar’. Someone that can supervise a cohesive and cogent policy and to whom the pertinent departments must respond.
“It’s time to deliver on those promises of a diversified economy,” Premier Wheatley stated.”
Too much of our government involves individual departments going off in their own direction. It’s as if there is no central authority supervising anything, no unified and unifying policy. There’s no plan for the economy that involves making Inland Revenue, Customs, Labour, Immigration and Trade work together. You’ think these children don’t play well together. Again, think about appointing a car to get the team all working together.
Perhaps the new Premier could stop micro managing that seems so common here for just a minute and look at the big picture?
Serious, I suspect you mean cut back on expenditure not “Revenue”.
and the next article over
https://bvinews.com/over-1-6m-in-rent-concessions-offered-to-tpp-tenants-since-2020/
This concession was only granted to their friends not all tenants. In case you did not know.
Can anyone with one eye and half sense believe this incredible BS spewing from this Unity Government. Just read the comments and you will know where the people stand………..NOT WITH this new unity government. It is just sickening what is coming out of the BVI! UK get off your arse and get here…. BVI is literally dying. WE NEED HELP!
Mr Premier, Can you please just present a financial statement including revenues, expenditures, loans commitments, cash on hand etc for the public at the earliest opportunity. Kindly have the Financial secretary there to answer any questions. In case you have not realised, we do not believe a word that comes out of the mouth of this Unity Government.
disinterest in good governance and accountability is not going to get you very far when making statements like this.
How much did we waste protecting the crooks in the government? Why did tax payers pay for this – our government should have nothing to hide and therefor not need a defence. Millions upon millions wasted along a long list of other incomplete and wasteful projects. How about getting all those consultancy fee’s back from the cr**ked bishop
Yet the govt just gave an extension for last year’s property taxes….go figure
Up the money transfer tax to 25% and the departure tax to 100 dollars. That will fill the bank.
We do NOT have the offshore money here, it is nearly impossible for them to open an account…
All these years of paying in favors to your people.
Excessive and unnecessary rents that gov’t pay while still fixing the complex
Turning a blind eye to local businesses not paying employee related taxes
Fabricated Gov’t contracts some completely false
The Tyranny unveiled on expats, increased Labour permits, double tax on remittances
delayed Work Permits forcing multiple payments for time..and all now the money can’t make ends meet..
What a shame!!!
Favors and wickedness have consequences.
Do the right thing. Ask those businesses to pay up, it’s millions out there languishing.
Pushing the same agenda like the former Premier
Where is the CHRISTIAN Council voice in these activities which is going to further perpetuate darkness on this our blessed land ?
I guess they are afraid they have to give back the money ? if the openly defy this that is why church and state don’t mixed so as not to silence wrong doing
We are in a sad situation
Potential bankruptcy! That is serious real talk. But to get a true feel of where the VI was and where it is now, a peek of history is needed. The VI lacked the natural resources(forestry, minerals, fishing, agriculture, mining) to create a primary economy nor does it have the natural resources to create a secondary economy (manufacturing). It is natural resource poor. Its economy is based on services——currently two fragile sectors, ie, tourism and financial services.
Transitioning from subsistence agriculture to tourism and financial services in the mid-60s and 80s, respectively, they boosted the territory into having one of the highest standard of living, quality of life, and per capita income in the region. Nevertheless, the territory didn’t capitalize well on its success, increase revenue. It lacked a national development plan, operating from the seat of its pants. The window of opportunity is closing fast. The VI economy grew, peak, and is approaching decline. The VI failed because of its success and must learn and grow from its failure. It must maximize the return on its failure. But that is a discussion for more time. What it needs now is a three phase revenue intake scheme, ie, near, middle and long term.
VI revenue and ability to deliver services, ie, health, education, utilities, public safety, social services, etc, comes mainly from taxes and fees, so government must have in place a robust revenue collection plan. People don’t like paying taxes and try to avoid them. Further, universally, people believe government is wasteful, disdain paying taxes, fees, etc, but increasingly want better and more services. A challenge for government.
The government financial woes is challenging with no easy fix. It has huge operations and maintenance, and capital budget needs but little financial resources. And even if the UK suspends the constitution and imposes direct rule, it will not assume the huge financial burden, for the UK has its own financial challenges. The VI needs a plan of action and milestones for addressing its financial woes. As a start, it needs to commission a)zero base analysis, and b) a skunkwork projects. For good measure, it also needs a creative destruction project. Finance is the engine, the, lifeblood that carries the oxygen for government so its effective manage an important, urgent and a priority 1 issue.
@E. Leonard, it seems as if you are saying that the BVI is not as wealthy as it thinks it is, it mismanaged its financial resources, it has way much more needs than money in the bank, it was not working from a structured plan, its revenue streams are limited, the UK is not going to pony up any money and so on. What a bleak picture. Look like the BVI has to do a long of borrowing after it comes up with a credible plan. Its debt to GDP is not that high. By the way, what is a skunkwork project? Skunks stinks to high heaven so hopefully the project is different from the name.
@E. Leonard, you give a good summary and made some general statements about the current BVI financial situation but can you give done basic specifics about some financial processes. I had to goggle Zero Base Analysis and Skunkwork and though they seem to useful tools they are more for the medium to longer-term phases. The BVI needs some shore-term/near-term solutions.
Smith, top of evening greetings!! Thanks for your question about funding specifics. However, I’m at the 30,000’ level and remote from the realities at the 30,’ ground level, so I will not be able to provide any specifics. Nonetheless, I will provide some general blue sky thinking point of views.
Clearly, countries, organizations, institutions, agencies, NGOs, etc, facing financial challenges keeping the lights on typically has two options, i.e., a) cutting cost, and b) increasing revenue. The Virgin Islands (VI) (British) seems to be facing a financial crisis.
Consequently, it needs to make some structural adjustments. It needs to look at its revenue streams, means and modes of collecting revenues, its service needs, its priorities(health, safety, legal, etc), what its revenue streams can support, its operating cost, look at service inefficiencies, service duplication, etc; value for money, cutting level of service where warranted, establish band of services that can be reduced from the outside in as needed, set above line hard expenditures (below line soft expenditures are flexible), etc. A zero base analysis would highlight a myriad of opportunities.
Moreover, the VI has a deep list of needs, but it does not have the reserve funds to fund its needs. It needs a prudent level of funding in reserve for contingencies, ie, hurricanes, etc. Consequently, its most probable means of funding its needs is borrowing but it must be prudent and smart in its borrowing, keeping its debt load within a manageable level. Some international bodies suggest that prudent debt:GDP ratio for developing countries is 40% for developing countries and 60% for developed countries.
Many countries race past these suggested ratios and encounter financial challenges. The VI estimated debt to GDP ratio is between 12-18%. So in regards to borrowing capacity, it is in relatively good shape. But the VI has a Protocols For Effective Financial Management agreement with the UK, the Administering Power.
Moreover, when money is borrowed, it has to be repaid and there must be a source, a means to pay it back. The lion share of VI revenue comes from taxes, fees, etc. Taxes will probably have to raise, perhaps temporarily (sunset clause), to fund its needs. The level of taxation have to be weighed against revenue v. growth. A dated 1991 study by National Center for Policy Analysis suggest:
a. On the average, governments collect the highest possible revenue when they take about 43.2 percent of gross domestic product (GDP) in taxes, and;
b. On average, countries reach their maximum economic growth rates when they take no more than 19,3 percent of GDP in taxes.
Disclaimer: I’m a financial management novice.
@E. Leonard, you clearly know the specifics that are needed but you are hiding behind the convenient excuse that you are not on the ground and remote from the situation. You sure had lots to say though you are supposedly remote. Stop it. You are part of the group/cabal that probably want to impose austerity measures, cut the civil service, increase property and other taxes, tax the assets of incorporated companies, cut the political patronage, cut legislators generous allowances, collect outstanding fees and taxes from deadbeats(shame them), stop the excessive rent payout, strict control on how money is paid out of the treasury, etc. I’m not averse to non of these issues. Again, my issue is that you know what is needed but won’t say it. Holding back is not helping during the BVI gravest hour.
You give a debt to earnings ratio that likely is based upon past numbers. Slow Wande has said that revenues are down which implies that the debt to earning (GDP) ratio is about to get rocked. Which means that our borrowing capacity, as well as our ability to service existing debt, is about to take a hit unless this guy grows some brain cells that he doesn’t have or by some miracle figures something out that above his capacity.
How much income tax is paid by busnesses. Businesses pay whatever they feel like because no-one is ever audited. How many yacht crews declare earnings and pay taxes. Hundreds of thousands in tips are paid to crews and never declared. Inept government for years – money never declared – and who can blame the people when so much gov’t money is wasted by incompetence, corruption and stealing… If gov’t set a good example the taxpayers might be more co-operative.
Its about time that the Government stop having all these rented office spaces in all corners of the country, those monies could be in the treasury to help with the financial sitaution that they are proclaiming. On the flip side of things, this same group of people voted to give themselves some hefty retirement packages when they leave office, greedy and self centered, why dont they reverse those packages if they want to do something meaningful
Soon you going hear him talk Austerity measures
Cut spending
Raise taxes
Reduction in civil workers
$8million paid toanswer some questions that you had to answer, that along with the plane fiasco is the reason the country broke
You dumb a**es need money cause you’re not getting all the usvi day charter cash. There is a windfall of cash waiting to come your way if you just return to pre pandemic charter business
Where is the insurance money ($11.4M) received for the complex: https://bvinews.com/govt-receives-11m-payout-for-admin-complex/
The people and the country is never their priority and never will be , there own needs is always their priority. They only come rob , steal and destroy PERIOD!!!
Have elected and appointed officials pay their own COI legal fees.
Reduce the number of civil servants on the government payroll and reduce the salaries of the remaining by 40%.
Seek repayment of all $$$$ from under the table deals going back at least 22 years.
With this alone, we can improve the health care system, the educations system, the road system and sewer systems. Improve air quality at the dump, improve electricity and the overall quality of life in these beautiful virgin islands.
We will also need to replace the existing government with competent and mature individuals that are truly willing to make the controls necessary to improve governance and prevent leakages from our treasury.
As a territory, we need to be self reliant. We don’t have a fishing complex since Irma. We have a beef island but no cattle of our own. We have a salt island but import salt on a daily basis. All the mangoes growing throughout the territory but we still bringing in mangoes from other countries. A place that used to produce and export sugar is now getting sugar from everywhere but here and to help the economy, all you could think about is cannabis and gambling?
My suggestion is, if the ones who are placed in these seats as ministers would stop stealing and misusing government funds we would ve in a better position. When it comes to the issue of these detainees why are we keeping them here so long? Provide covid-19 testing once they are negative ship them to where they came from.
The expatriates will carry the burden until they pack and leave the brayers to turn on each other.
Dont forget the West End ferry terminal. Supposed to have gone to tender at end of April. Do we still have the funds?
Over a decade ago, a local business man was taken to court for withholding social security funds and he was told he has to pay a fine, lets say of $15k, but a timeline was not given, because the act does not stipulate such and the SCAMP said boastingly, he can take a hundred years to pay and nothing can be done about it. This should be a form of embezzlement, and a similar sentence as meted out to the few who crossed that path should be the same punishment for the tax cheats.
Maybe the people should just rise up and revolt because the zNUG
Is the same tail of the snake . Just the head gone
How can members of a government stay there and watch the BVI go done on its knees
How can intelligent young people including out new leader be silent to all the pillage and plundering taking place in the country?
Where can he get the backbone now to stand up and not buckle under the UK?
Marlon is the only one pushing back and the rest of the green snake thinks he is PICKING
How can we expect them to clean up.. Three green votes against two in Cabinet?
This is insane
Are we still paying for all those office spaces the X Premier rented from his family P for himself?. If we can cut back on a lot of those office rental space most of them are really not needed we can safe about 10 Mil a year or more easily..Then Focus on building another state building. Imaging Health workers can’t get pay on time, money scarce but they gone rent old flow building when the hospital has so many available spaces. How irresponsible can this be.? Malone was really a waste.
So much millions spend and after three years the HOA still does not have a proper building … Paying exorbitant rent at Save the seed building
Repeal the greedy bill and get a proper building or fix the one next to the high school
I dont agree with raising taxes. Right now regular people are still recovering from irma & covid, but are benefiting from the low import tax.
We’ve been known as a low tax jurisdiction and contrary to popular indoctrination our lives would likely get worse not better by paying more taxes.
In addition unlike national health insurance and social security the concept of income tax generally is not in line with biblical principles. It basically is a tax to live our life, humans are divine not meant to be enslaved based on monopoly rules & fake money that man prints.
But but but we use the dollar. People use the dollar because it was back by gold, now its backed by oil. Otherwise its not worth the paper its printed on and can easily be devalued if a few countries decide to cut them off from the oil.
Give it 10 years and no country will be using traditional money because due to Ukraine the global financial cooperation has been shattered. They’ll continually undermine each other until a decentralized solution which no government has power over becomes a necessity.
Someone should have told Andrew Fahie that before he allegedly threw his life & the territory away for paper.
If your running after paper for the sake of it your running after a lie. We all have to die.