Deputy Permanent Secretary in the Ministry of Finance, Mike Sylvester has said that Grenada has one of the lowest tax burdens when compared to the rest of the region and government is seeking to raise more revenue during its Structural Adjustment Programme (SAP) to put towards capital projects.
Sylvester was speaking to public sector employees represented by the Public Workers Union (PWU) and the Technical & Allied Workers Union (TAWU).
“We are talking about 19% of our GDP where the average for ECCU is 24 – 34% so we are behind,” Sylvester explained.
“The idea of course is to increase the revenue, to reduce expenditure and to have more resources go towards the capital side of the budget”, he told the workers.
According to Sylvester, government’s emphasis on capital projects will be on rehabilitation of buildings and work on schools .
Sylvester said the structural adjustment programme is two fold because while taxes will be increased, the government wants to create a better doing business climate to stir economic growth.
“Of course there is the other side of the programme that deals with the issue of trying to enhance growth and of course they’re working in respect to the doing business reform indicators that is an aspect of the programme,” he added.
This aspect, he said would generate more growth in the country.
The senior official in the Ministry of Finance disclosed that government is also working with the Grenada Industrial Development Corporation (GIDC), Marketing and National Importing Board (MNIB) and others to reform those organisations.
“I cannot speak to specific projects but that is the idea – to make the doing business environment much better so that you’ll have more investment”, Sylvester said.