The Government of Saint Vincent and the Grenadines, in December 2019, adopted a rules-based Fiscal Responsibility Framework, by way of a Parliamentary Resolution.
The objective of the Framework is to establish the principles and procedures of responsible fiscal management and to facilitate effective parliamentary oversight and public scrutiny of the fiscal performance of the government. The Framework is guided by principles of responsible fiscal management:accountability, sustainability, stability and transparency and is intended to aid in achieving the following goals:
- achieving and maintaining a sustainable fiscal balance;
- achieving and maintaining prudent levels of public debt;
- prudently managing fiscal risks; and
- promoting prudence and enterprise in fiscal management
The Framework was tabled in the House of Assembly along with the Budget for the 2020 fiscal year. It was also published in the Gazette and is available online at www.gov.vc. The Framework is anchored by a debt rule which is to reduce the debt to GDP ratio to 60% of GDP by 2030, in line with the regional target adopted by the Eastern Caribbean Currency Union. This rule is supported by operational rules for the management of the Primary Balance,
Recurrent Expenditure and the Wage Bill.
In this regard, a 5-member Fiscal Responsibility Mechanism (FRM) was appointed by the Cabinet to oversee compliance with the fiscal rules and the other principles and procedures of sound fiscal management contained in the Framework. In accordance with Section 9 of the Framework, members were drawn from the public and private sectors having qualifications and experience in law, economics and finance or a related area of expertise.
The Mechanism held its inaugural meeting on Thursday, 23rd September, 2021 with Prime Minister, Dr. the Honourable Ralph Gonsalves and Minister of Finance, Honourable Camillo Gonsalves. The newly appointed body will be engaged in orientation sessions, in the coming weeks, with similar regional mechanisms, specifically in Bahamas and Grenada.
FRM members are: Mr. Brian Glasgow - CGA, Mr. Maurice Edwards - CFA, Professor Justin Robinson - Ph.D. Finance, Ms. Shafia London - MBA, MSc., Dr. Linton Lewis Barrister-at- law, Solicitor and FCCA. Mr. Brian Glasgow has been appointed to chair the Mechanism.