Economic and Financial Review - June 2019

June 2019 Economic and Financial Review ANGUILLA

through the Governor’s office as part of the administration of the Anguilla Programme.

Anguilla Public Finance

EC$M

-20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

As a result of the overall fiscal surplus, the Government of Anguilla was able to reduce some of its obligations, with outstanding credit from commercial banks and the Central Bank declining by 84.1 per cent (11.4m) and 53.0 per cent (6.1m), respectively. In addition, the government made external loan payments totalling $6.4m over the review period, almost doubling the $3.3m in payments made over the corresponding period in 2018. Consequently, the total disbursed outstanding public sector debt stood at $496.5m at the end of June 2019, approximately 5.5 per cent ($28.7m) lower than that recorded at the end of 2018. The reduction in the total debt stock is attributed to ongoing debt amortisation, coupled with a virtual freeze on new debt by the central government, in keeping with the Framework for Fiscal Sustainability and Development (FFSD). Central government debt accounted for 98.5 per cent of total disbursed outstanding debt, with domestic debt making up 57.2 per cent of the total, while external debt accounted for the remaining 42.8 per cent. The outstanding

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Recurrent Revenue Recurrent Expenditure Current Account Balance

Current expenditure increased by 4.0 per cent ($3.9m) to $100.5m, compared with growth of 2.5 per cent ($2.3m) in the corresponding period of 2018. The expansion in current expenditure was primarily driven by an 18.7 per cent ($4.0m) increase in outlays for goods and services. Additionally, interest payments as well as transfers and subsidies rose by 7.2 per cent and 4.6 per cent, respectively. Tempering the increase in current expenditure was a 4.4 per cent ($1.9m) decline in outlays for personal emoluments. In respect of capital expenditure, outlays contracted by 56.5 per cent ($1.9m) to $1.4m, after posting $3.3m in the comparable period of 2018. This contraction was consistent with the fiscal tightening by the Government of Anguilla, in conjunction with the fact that the bulk of the capital expenditure is being coordinated

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Eastern Caribbean Central Bank