The Government of Grenada will collect $181 million less in revenue than was previously projected; the result of the devastating impact of Covid-19 on the local economy.
In an address to the nation on Monday, 17 August 2020, Prime Minister and Minister for Finance, Dr the Rt. Hon. Keith Mitchell, said faced with that reality, “Government has revised downwards, revenue initially proposed in the 2020 budget, given the estimated 40% or more in reduction on average in revenue collected by the Inland Revenue and Customs Departments and other areas of revenue generation.”
He said 2020 expenditure must now be brought in line to reflect the current situation. “This means that the budgets of most ministries will have to be adjusted to deal with the reduction in revenue. In addition, measures such as streamlining discretionary recurrent expenditure, stricter manpower management and waste reduction initiatives must be implemented.”
Dr Mitchell assured that government will place significant emphasis on aggressively implementing capital projects that are funded by external grants and loans, as part of plans to create jobs and stimulate the economy.
The Prime Minister also expressed concern that many seem oblivious to the dangers of Covid-19, by continuing to break protocol, engage in carnival-like activities and assemble in large numbers without wearing their masks, even after government went to parliament to legislate for the removal of the two day holidays that are usually carded for carnival.
He said even if it means the loss of some political support, government will do what is in the best interest of the health and wellbeing of the citizens of this country.