CATEGORY:GOVERNMENT
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The Government of Grenada has been diligently charting the way forward on behalf of the people of this blessed land. In doing so, particular focus with challenging initiatives has been undertaken to achieve the desired results.

The argument of why this and not that; or why him and not her could always be made, for that is the privilege of our Democracy that we proudly promote. However, what is certain is that decisions are expertly and dutifully taken in the interest of all concerned.

The Economic Reform Programme 2006 -2008 has four (4) key elements: (1) Enhancing growth, (2) Restoring fiscal and debt sustainability, (3) Reducing vulnerabilities, (4) Poverty alleviation. The Reform Programme received enormous support from regional and international organizations and stands to benefit from IMF resources to the tune of US 15.0M over its three (3) year life.

This year (2006), marks the first year of the Reform Programme and its performance provides the basis for a general overview of the microeconomic and fiscal developments that are expected during 2006 as well as the general framework for the 2007 Estimates of Revenue and Expenditure (Budget).

Another area of focus is on the performance of the regional and international economies, since Grenada is an open economy and consequently, developments in the economies of these other countries can and do impact on Grenada’s domestic performance.

FISCAL BENCHMARKS:
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A key element under the Programme is that the budget should be consistent with the medium term fiscal objectives of restoring debt and fiscal sustainability. The Budget should also be in line with the targets set out in the Structural Adjustment Technical Assistance Programme (SATAP) and ECCB’S fiscal benchmarks. Specifically, with the adoption of important revenue and expenditure measures, the fiscal position is expected to move from an underlying primary deficit of 2 percent of the GDP in 2005 to a primary surplus of 2.5 percent of GDP in 2008.