Revenue Collection Surpasses Projections in Grenada

• Revenue collection in Grenada surpassed projections for the period January to June 2022 while real GDP growth is projected to reach 3.3% by year-end.
• According to a mid-year review prepared by the Ministry of Finance, public finances improved in 2022 with revenue collections for the first 6 months exceeding the target and the comparable period of 2021 by $62.2Mn and $67.4Mn, respectively.
• The improvement in revenue came on the back of the administration’s decision to remove the cap on freight and petrol, as this allowed revenue collection agencies to earn more than what had been projected in the 2022 Estimates of Revenue and Expenditure.
• Notably, the recovery in the economy will continue to support revenues in the form of higher tax collection through wages due to higher employment, increased production, and consumption. Further, as the economy continues to recover, foreign direct investment should also improve bolstering economic output, as well as increasing foreign exchange inflow from pent-up tourism demand.
• Further, a primary surplus including grants of $58.2Mn is estimated for 2022, surpassing the budgeted deficit of $34.2Mn while a modest overall deficit of $1.6Mn is estimated at the end of this year compared to a budgeted deficit of $97.9Mn.

(Source: CARICOM TODAY)