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  • Fiscal performance has remained strong for financial year 2013/14, with all Central Government primary surplus and budget deficit targets being met.
  • The continuing fiscal consolidation effort bodes well for the attainment of the key primary surplus target of 7.5 per cent of GDP.
  • Dr. Phillips said inflation for the calendar year 2013 was 9.6 per cent.

Minister of Finance and Planning, Dr. the Hon. Peter Phillips, says fiscal performance has remained strong for financial year 2013/14, with all Central Government primary surplus and budget deficit targets being met.

“Provisional information indicates that the Central Government primary surplus to November 2013 amounted to $42.5 billion,” Dr. Phillips told the House of Representatives on January 28, while giving an update on the state of the economy.

He noted that this continuing fiscal consolidation effort bodes well for the attainment of the key primary surplus target of 7.5 per cent of Gross Domestic Product (GDP) for financial year 2013/14 and over the medium term.

Dr. Phillips said inflation for the calendar year 2013 was 9.6 per cent, and added that for the financial year 2013/2014, the Government is projecting an inflation outturn in single digit.

On the issue of the external account, estimates for the fiscal year to September 2013 indicate that there was an improvement in the current account deficit relative to the corresponding period of financial year 2012/13.

“For the fiscal year to September 2013, the current account deficit was estimated at US$678.7 million, which represented a reduction of US$347.8 million (or 33.8 per cent improvement) when compared to the corresponding period in financial year 2012/13,” Dr. Phillips said.

“This positive development was reflected in the performance of nearly all sub-accounts. The goods and services sub-account recorded the greatest improvement of US$294.8 million, due mainly to a reduction in imports. This trend is expected to continue for the rest of the fiscal year,” he added.

The Minister reported that the net international reserves (NIR) increased to US$1,052.8 million at the end of December, 2013, compared to US$884.3 million at the end of March, 2013. This met the target under the country’s Extended Fund Facility (EFF) with the International Monetary Fund (IMF).

Dr. Phillips said that further improvement, in line with the IMF Programme target, is expected by the end of March 2014, due to programmed inflows from multilateral institutions and improvements in net private capital flows.