ROSEAU, Dominica – The 2024/2025 National Dominica budget address featured striking investments in the international airport, the digital economy and the Cabrits Marina, among other important works. These developments, assisted with funds from the Citizenship by Investment (CBI) programme, enhance Dominica’s community and the welfare of Dominican citizens.
Presented in parliament on Friday, July 26, 2024, by the minister of finance, economic development, climate resilience and social security Dr Irving McIntyre, the budget presents a strong defense of Dominica against rapidly advancing geopolitical and economic challenges.
His address followed president Sylvanie Burton’s landmark opening of the parliamentary session.
Budget overview
The size of the budget is $1.4 billion. Parliament has also sought authorisation to borrow via overdraft from financial institutions.
The government will also seek additional credit facility from the International Development Association (IDA) to fund the Emergency Agricultural Livelihoods and Climate Resilience Project.
Proposing a 679.4 million recurrent expenditure, the ministries allocated the most funds included (in order):
- Ministry of finance, economic development, climate resilience and social security – $296.3M or 33.6 percent of total recurrent expenditure.
- Ministry of health, wellness and social services – $81.9M or 12.1 percent of the total recurrent expenditure.
- Ministry of education, human resource planning, vocational training and national Excellence – $70.7 million, or 10.4 percent of the total recurrent expenditure
- Ministry of national security and home affairs – $60.6 million or 8.9% of total recurrent expenditure.
- Ministry of public works – $55 million, or 8.1% of total recurrent expenditure.
Citizenship by Investment Funds
Notably, a substantial portion of Dominica’s revenue, will be generated through the Citizenship by Investment (CBI) Programme, reflecting the confidence and trust of investors in the nation.
The CBI Programme has been a cornerstone of Dominica’s economic development strategy, attracting investment, stimulating growth, and creating opportunities for citizens.
President Burton remarked how Dominica has achieved remarkable progress without burdening citizens with additional taxes, all thanks to the invaluable contributions from the Citizenship by Investment (CBI) programme.
The revenue generated through the CBI initiative has been instrumental in alleviating some of the capital costs that would have otherwise fallen on residents.
Projects mentioned in the 2024-2025 budget
Lauding the international airport as the ‘flagship project’ of the government, Dr McIntyre noted that the project was ‘ahead of schedule,’ to great applause. And that the airport would have the capacity to host half a million passengers.
‘We continue to pursue initiatives designed to grow economy and foster the economic well-being of our people,’ Dr McIntyre said, and provided an update on the Cabrits Marina, stating that ‘the construction of the Mariner system is estimated to take 12 to 18 months.’
Another project cited by the minister included Woodbridge Bay Port, which will enhance tourism.
With a nod to Dominica’s low crime rate, sparkling hospitality and central Caribbean location, Dr McIntyre added that these projects will create countless jobs while bringing more tourists to the island.
Infrastructure
Dr McIntyre updated legislators on the enhanced road network and announced two new road projects, commencing this October. The minister anticipated these road works to be transformative, facilitating easier accessibility, improving road safety and raising property values in the areas that the new road networks will connect.
Growth prospects
Dr McIntyre outlined Dominica’s growth of 4.7 percent in 2023, and also noted that the IMF projects Dominica’s growth to be 4.6 percent in 2024 – which outstripped the world’s economic growth of 3.2 percent in 2023.
Dr McIntyre added that, “This marked the third consecutive year of growth” for Dominica’s economy, attributing this growth to public sector investment, a rebound in tourism, and enhanced agricultural production.
Also emphasised was Dominica’s strong fiscal performance, citing the ‘improvement’ in the primary balance from a fiscal deficit of 0.8 percent at the end of June 2023 to a surplus of 0.6 percent for GDP as of June 30, 2024.
“This is mainly due to a favourable economic climate which impacted positively on tax revenues”, Dr McIntyre explained. “As the country embarks on a journey of growth and transformation, the July Dominica budget speech serves as a testament to the pivotal role that the Citizenship by Investment programme plays in shaping the future of Dominica.”
