Grenada Government Signs General Warrant for EC$400 Million
Government Provides Funding for Ministries and Departments
Finance Minister Dennis Cornwall
The Grenada government has signed a general warrant providing EC$400 million to various ministries and departments for use during the first quarter of 2025. This move comes as the Houses of Parliament have yet to approve an Appropriation Act for the new fiscal year.
Reason for the General Warrant
"Only Thursday or Friday has passed since I signed off on the general warrant that gives the ministries and departments the okay to spend for the first quarter of 2025. The amount is just EC$400 million; it takes up a three-month period for all the ministries and departments," Finance Minister Dennis Cornwall said.
Provision for Recurrent Revenue and Ongoing Capital Projects
Speaking on a radio programme, Cornwall told listeners that there is provision for recurrent revenue and ongoing capital projects. "During that time, we will prepare the budget and the budget speech," said Cornwall, noting that the late presentation of the fiscal package budget is not due to a lack of money since the presentation had been planned for the first quarter of 2025.
Background on the Budget Delay
Last October, Prime Minister Dickon Mitchell said the decision to postpone the budget from its traditional late November or early December period was due to several factors, including the disruption caused by Hurricane Beryl’s passage on July 1, 2024.
Legislative Guidelines
Section five of the Public Finance Management Act describes Grenada’s fiscal year as the period January 1 to December 31 of each year, while section 15 instructs that the finance minister shall submit to the Standing Committee on Finance at least two months before the end of the fiscal year the Government’s annual estimates for the following fiscal year, even if the budget is presented within the fiscal year.
The legislation also guides the process of legalizing a late presentation of the budget. "Where the Appropriation Act for a financial year has not come into operation at the commencement of the financial year for any reason, the Minister is authorized to collect revenues and approve such expenditure necessary to three months from the beginning of that financial year or the coming into operation of the Appropriation Act, whichever is the earlier," it noted.
The legislation further states that such expenditures shall not exceed one-fourth of the approved budget of the previous fiscal year.
Conclusion
The general warrant provides a necessary interim funding solution for the government’s ministries and departments as they await the approval of the Appropriation Act for the new fiscal year. The late presentation of the budget is not due to a lack of funds, but rather a result of the disruption caused by Hurricane Beryl and the need to prepare for the new fiscal year.
FAQs
- Why was the general warrant signed?
The general warrant was signed to provide interim funding for ministries and departments while the Houses of Parliament approve the Appropriation Act for the new fiscal year. - What is the amount provided for the first quarter of 2025?
The amount is EC$400 million. - What is the reason for the late presentation of the fiscal package budget?
The late presentation is not due to a lack of money, but rather a result of the disruption caused by Hurricane Beryl and the need to prepare for the new fiscal year.
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