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  • 1 year ago
A conservative fiscal plan was presented by Finance Minister Colm Imbert today, as he read the 2025 budget plan, entitled, "Steadfast and Resolute: Forging Pathways to Prosperity". But while many were expecting no "budget goodies" this year, the Finance Minister came bearing good news for public-sector workers, in the form of an increased minimum wage, and a 5% wage increase offer for the next bargaining period. Rynessa Cutting has the highlights.

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00:00Several thousand public sector workers will see an increase in pay effective November 1st
00:07thanks to a decision by the government to increase the minimum wage by $2 an hour.
00:12We will increase the minimum wage earned by public sector employees
00:18from $20.50 an hour to $22.50 an hour, an increase of $2 per hour or 9.8%.
00:28This increase is expected to cost the government $75 million in fiscal 2025
00:35and will take effect from November 1st, 2024, two months from now.
00:40And even as some public servants are yet to accept government's 4% wage increase offer,
00:45the finance ministers put 5% on the table for the next bargaining period.
00:51For the next three-year period, 2020 to 2022,
00:57the government, even in the face of our challenging financial circumstances,
01:02has decided to offer public sector workers an increase of 5%.
01:12This increase is estimated to cost the government an additional $475 million per year.
01:20VAT refunds are also featured in the budget presentation.
01:23Recognizing that companies depend on VAT refunds for cash flow,
01:28the Ministry of Finance intends once again to issue interest-bearing VAT bonds in fiscal 2025
01:37in the sum of $3 billion with a target date for issuance of January 31st, 2025.
01:45However, on this occasion, these bonds will be issued in a manner that does not create difficulties
01:51or shortages in the local foreign exchange market.
01:54Small and medium enterprises who are owed refunds will be paid in cash by December 31st, 2024.
02:05In what would be his 10th budget presentation,
02:07Finance Minister Colm Imbodge presented his 9th deficit budget,
02:11which featured estimated revenues and expenditures.
02:14Almost identical to the initial 2024 budget.
02:19We expect total revenue of 54.224 billion with total expenditure of 59.741 billion.
02:39Resulting in a fiscal deficit of $5,517,000,000.
02:47The Finance Minister presented a conservative fiscal plan,
02:51opting to peg the budget to oil prices several dollars below the projected value.
02:56The U.S. Energy Information Administration current short-term outlook
03:01estimates the price of Brent crude in 2025 to be $84 a barrel.
03:07But we're going to be very conservative.
03:10Our oil price assumption for 2025 will be U.S. $77.80 per barrel,
03:18compared with U.S. $85 per barrel in 2024.
03:23And our natural gas price assumption will be U.S. $3.59 per mm BTU,
03:30compared with U.S. $5 per mm BTU in 2024.
03:36And while many were expecting national security to shoot away
03:39with the lion's share of the fiscal allocation this year,
03:43this critical ministry maintained its historical position of third in the lineup.
03:48Education and training, $7.512 billion.
03:53Health, $7.512 billion for education and training.
03:59Health, $7.571 billion.
04:05National security, $6.113 billion.
04:10Public utilities, $3.221 billion.
04:15Infrastructure, $1.862 billion.
04:20The finance minister also announced the government's plan to sell its shares in Clico
04:25and renewed the government's commitment to selling or leasing the state's refinery.
04:30Renessa Cutting, TV6 News.
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