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Grenada

Author(s):
International Monetary Fund
Published Date:
July 1998
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Grenada—Basic Data
Social and economic indicators
Area344 sq. kilometers
Population92,323
Annual rats of increase0.2
Crude birth rate (1992)24.9 per 1,000
Crude death rate (1992)8.9 per 1.000
Infant mortality rote (1993)30 per thousand live births
Population per physician (1991)1,445
Population per hospital bad (1992)228
Urban population with access to safe water (1993)100 percent
Rural population with access to safe water (1993)83 percent
Energy consumption per capita (1993)284 kgs. of oil equivevalent
Per capita protein intake (1992)81.1 grams per day
Per capita intake of calories (1992)2,400 calories per day
Primary school enrollment (1993)22,718
Unemployment rate (1995)28 percent 1/
GDP (1995)US$275.60 million
GDP per capita (1995)US$2,985 per capita
19911992199319941995
Origin of GDP(percent)
Agriculture12.612.112.011.811.9
Mining0.40.50.50.50.5
Manufacturing6.77.46.56.15.9
Construction7.56.96.97 07 0
Government21.522.022.622.622.6
Wholesale and retail trade11.511.612.012.012.0
Transport and communications20.121.522.622.622.6
Hotels and restaurants6.17.17.59.29.0
Ratios to GDP(percent of GDP)
Current account of the balance of payments-15.3-9.0-14.9-11.4-4.9
Exports10.28.88.69.57.9
Imports46.642.247.550.943.4
Public debt-service ratio (in percent of current receipts)6.25.64.63.74.1
Public interest payments (in percent of current receipts)1.92.01.91.41.3
External public debt (and of period)38.935.836.235.735.3
Central government revenues (including grants)27.825.828.627.528.3
Central government expenditures33.226.028.830.027.0
Of which: capital formation8.83.14.78.45.8
Central government savings-0.5-0.51.70.12.2
Overall surplus or deficit (-) of the
Central Government-5.4-0.1-0.2-2.51.3
Revenues: rest of the public sector4.35.16.96.14.5
Expenditures: rest of the public sector1.91.94.24.22.2
Of which: capital formation1.31.13.33.31.1
Savings of the rest of the public sector3.43.93.63.93.2
Overall surplus/deficit of the rest of
the public sector2.33.22.71.92.3
Nonfinancial public sector revenues32.130.935.533.632.8
Nonfinancial public sector expenditures35.127.833.034.229.3
Of which: capital formation and divestment10.22.58.09.15.1
Capital formation10.14.28.011.76.9
Divestment0.1-1.7-2.6-1.8
Nonfinancial public sector savings2.93.45.24.15.4
Overall surplus/deficit of the nonfinancial
public sector-3.03.12.5-0.63.6
Gross national saving25.125.422.527.027.3
Gross domestic investment40.434.437.438.432.2
Money and quasi-money
(banking system, end of period)52.756.867.571.974.0
Annual change in selected economic indicatorsannual percentage change
Real GDP3.61.2-1.22.32.7
GDP at current prices9.20.31.84.16.4
GDP deflator5.4-0.93.11.83.6
Consumer prices (annual average)2.63.82.82.62.2
Consumer prices (end of period)1.04.63.51.92.1
Central government revenues14.8-6.812.80.09.6
Central government expenditures0.2-21.413.08.4-3.6
Merchandise exports (f.o.b.)-10.6-13.7-0.114.3-11.9
Merchandise imports (f.o.b.)-9.5-9.114.511.6-9.4
Terms of trade-5.5-7.1-3.88.7-0.2
Money and quasi-money (M-2)5.38.37.210.99.4
Money (M-1) 2/-0.65.91.12.91.7
Quasi-money 2/5.92.56.07.97.7
Net domestic assets of the financial system 2/6.80.66.22.40.2
Credit to the Central Government (net)3.0-6.5-0.2-0.60.0
Credit to public enterprises (net)-0.5-0.8-2.5-2.4-l.1
Credit to the private sector5.37.910.42.74.9
Central government finances(millions of E.C. dollars)
Revenue (including grants)182.7170.3192.2192.3210.7
Expenditure217.9171.3193.5209.7201.2
Current account-3.1-3.211.20.916.7
Overall balance-35.2-0.9-1.3-17.49.5
External financing18.07.77.826.54.2
Balance of payments(millions of U.s. dollars)
Merchandise exports (f.o.b.)24.921.521.524.621.6
Merchandise imports (f.o.b.)-113.5103.2-118.1-131.9-119.6
Balance of trade-88.6-81.7-96.6-107.3-98.0
Investment income (net)-7.5-6.8-9.5-8.8-8.4
Other services and transfers (net)58.866.468.986.792.8
Balance on current account-37.3-22.1-37.2-29.5-13.6
Capital transfers17.212.420.021.518.2
Public sector capital (net)1.6-1.5-0.67.4-0.9
Private sector capital (net)17.318.819.510.02.2
Overall balance-1.27.71.79.45.9
Change in official net reserves (increase -)-0.2-8.0-1.0-4.6-6.0
Change in arrears and rescheduling1.40.3-0.7-4.80.1
International reserve position (end of period)(millions of U.S. end of period)
Central Bank (net imputed reserves at the ECCB)13.725.826.831.437.4
Real effective exchange rate 1980-10098.5109.7117.9113.6112.5
IMF data (as of March 31. 1996)
Article VIII status
Intervention currency and rateECS2.70 per US$
QuotaSDR 8.5 million
Fund holdings of local currencySDR 8.5 million
From Fund resources
Credit tranche purchases (including SBA)
From supplementary and enlarged access resources
Stand-by purchases
Fund holdings under tranche policy
Total Fund holdings
Special drawing rights department
Cumulative SDR allocationSDR 0.93 million
Net acquisition or utilization (-) of SDBsSDR 0.93 million
Boldings of SDBsSDR 0.02 million
Share of profits from gold salesUS$0.33 million

It would appear that this unemployment estimate includes a large measure of both the seasonally unemployed and the voluntarily unemployed.

As a percent of money and quasi-money at the beginning of the period.

It would appear that this unemployment estimate includes a large measure of both the seasonally unemployed and the voluntarily unemployed.

As a percent of money and quasi-money at the beginning of the period.

Table 1.Grenada: Real GDP by Economic Activity
19911992199319941995
(In millions of Eastern Caribbean dollars at 1990 prices)
GDP at constant factor cost495.1501.0495.0506.5519.9
Agriculture62.560.859.659.661.7
Crops49.347.245.845.647.4
Livestock, fishing. and forestry13.213.613.814.014.3
Livestock3.53.63.73.73.8
Fishing7.88.08.18.38.5
Forestry1.92.02.02.02.0
Mining and quarrying2.42.52.42.52.6
Electricity and water19.520.520.321.422.4
Manufacturing33.236.932.331.030.7
Construction37.034.834.135.636.5
wholesales and retail trade57.058.159.360.662.5
Hotels and restaurants30.335.537.246.447.0
Transport and communications106.2110.0111.6114.4117.4
finance and housing62.363.664.865.867.6
Banking and insurance39.140.441.242.143.7
Real estate and housing23.223.223.623.723.9
Government services100.294.990.286.589.1
Other services14.514.814.915.015.1
Last: imputed service charge29.931.331.832.432.7
(Annual percentage changes)
GDP at constant factor cost3.61.2-l.22.32.7
Agriculture-2.3-2.7-2.03.5
Crops-4.0-4.3-3.1-0.44.0
Livestock, fishing, and forestry4.53.11.51.22.1
Livestock3.53.10.60.81.9
Fishing4.93.11.41.73.0
Forestry5.03.24.1-1.5
Mining and quarrying14.72.1-4.05.12.8
Electricity and water8.05.0-0.55.15.0
Manufacturing5.811.4-12.5-4.0-1.0
Construction7.1-6.1-2.04.52.5
Wholesale and retail trade1.62.01.92.33.0
Hotels and restaurants9.217.34.924.81.2
Transport and communications10.53.61.62.32.6
Finance and housing3.12.11.91.52.7
Banking and insurance5.13.31.92.14.0
Real estate and housing-0.22.00.50.5
Government services-1.3-5.3-5.0-4.03.0
Other services1.92.00.70.91.0
Loss: imputed service charge5.54.71.52.01.0
Sources: Ministry of Finance (CSO); and staff estimates.
Sources: Ministry of Finance (CSO); and staff estimates.
Table 2.Grenada: Aggregate Domestic Expenditure at Current Prices
19911992199319941995
(In Millions of Eastern Caribbean dollars)
Gross domestic expenditure765.5730.2770.4795.1796.6
Consumption expenditure499.6503.0519.2526.1557.2
Private sector385.7384.7405.9407.3435.4
General government113.9118.3113.3118.8121.5
Gross domestic investment'265.8227.2251.2268.9239.7
Private sector199.7199.4197.4187.1187.9
Direct investment41.272.046.452.134.4
Other158.5127.4151.0135.0153.5
Public sector66.127.853.881.851.5
Goods and nonfactor service balance-107.6-70.3-98.3-95.3-52.2
Exports of goods67.358.258.166.458.4
Imports of goods306.4278.6319.0356.1322.8
MF services (net)131.5150.1162.6194.4212.2
GDP at factor cost528.8556.9561.9586.6627.8
Net indirect taxes129.0103.0110.2113.1116.6
GDP at market prices657.8659.9672.1699.7744.4
(In percent of GDP at market prices)
Gross domestic expenditure116.4110.7114.6113.6107.0
Consumption expenditure76.076.277.375.274.9
Private sector58.658.360.458.258.5
General government17.317.916.917.016.3
Gross domestic investment40.434.437.438.432.2
Private sector30.430.229.426.725.2
Public sector10.04.28.011.76.9
Goods and nonfactor service balance-16.4-10.7-14.6-13.6-7.0
Exports of goods and nonfactor services10.28.88.69.57.8
Imports of goods and nonfactor services46.642.247.550.943.4
Nonfinancial services (net)20.022.724.227.828.5
GDP at factor cost80.484.483.683.884.3
Net indirect taxes19.615.616.416.215.7
GDP at market prices100.0100.0100.0100.0100.0
Memorandum items
Growth of nominal GDP at factor cost10.75.30.94.47.0
Growth of nominal GDP at market cost9.20.31.84.16.4
Sources: Ministry of Finance (CSO); and staff estimates.
Sources: Ministry of Finance (CSO); and staff estimates.
Table 3.Grenada: Savings and Investment
19911992199319941995
(In millions of Eastern Caribbean dollars)
Gross domestic savings1/158.2156.9152.9173.6187.2
Transfers from abroad27.329.123.539.638.3
Net official-2.10.2-3.87.53.9
Net private29.428.927.332.134.4
Net factor payments-20.4-18.4-25.6-23.8-22.7
Gross national savings2/165.1167.6150.8189.4202.8
Private sector145.7145.1115.5155.3165.4
Consolidated public sector19.422.535.334.137.4
Gross domestic investment265.8227.2251.2268.9239.4
Private sector199.7199.4197.4187.1187.9
Public sector66.127.853.881.851.5
Foreign savings3/100.759.6100.479.536.6
Total savings265.8227.2251.2269.0239.4
(In percent of GDP at market prices)
Gross domestic savings1/24.023.822.724.825.1
Transfers from abroad4.14.43.55.75.1
Net official-0.3-0.61.10.5
Net private4.54.44.14.64.6
Net factor payment-3.1-2.8-3.8-3.4-3.0
Gross national savings2/25.125.422.427.127.2
Private sector22.222.017.222.222.2
Consolidated public sector2.93.45.34.95.0
Gross domestic investment40.434.437.438.432.1
Private sector30.430.229.426.725.2
Public sector10.04.28.011.76.9
Foreign savings3/15.39.014.911.44.9
Total savings40.434.437.438.432.1
(In percent of gross domestic investment)
Memorandum items
Gross national savings62.173.860.070.484.7
Private sector savings54.863.946.057.869.1
Consolidated public sector saving*7.39.914.112.715.6
Foreign savings37.926.240.039.615.3
Sources: Ministry of Finance; and staff estimates.

Domestic savings is defined as the difference between GDP and total consumption.

Gross national savings is defined as domestic savings plus transfers from abroad less factor payments.

Foreign savings is the current account of the balance of payments, with the sign reversed.

Sources: Ministry of Finance; and staff estimates.

Domestic savings is defined as the difference between GDP and total consumption.

Gross national savings is defined as domestic savings plus transfers from abroad less factor payments.

Foreign savings is the current account of the balance of payments, with the sign reversed.

Table 4.Grenada: Output and Prices of Major Agricultural Crops
19911992199319941995
(In Eastern Caribbean dollars per pound)
Producer prices
Banana0.30.30.30.30.3
Cocoa1.81.81.51.71.8
Nutmeg3.01.00.60.60.6
Mace3.12.21.41.42.1
(In thousands of pounds)
Output
Banana15.60714,05910,98410,0389,768
Cocoa3,0663,5893,4812,4933,988
Nutmeg5,8005,1484,8203,9564,718
Mace451301193204210
(Annual percentage change) 1/
Producer prices
Banana3.3-3.2-6.0
Cocoa15.0-16.713.36.1
Nutmeg-66.7-40.0
Mace-40.2-29.9-36.72.248.2
Output
Banana-10.6-9.9-21.9-8.6-2.7
Cocoa-26.117.1-3.0-28.460.0
Nutmeg-0.1-11.2-6.4-17.919.3
Mace-16.0-33.2-36.05.83.1
Source: Ministry of Finance (CSO).

Percentage changes based on unrounded data.

Source: Ministry of Finance (CSO).

Percentage changes based on unrounded data.

Table 5.Grenada: Output and Prices of Selected Manufactured Products(Value in millions of Eastern Caribbean dollars: volume in thousand units, and unit values in Eastern caribbean cents)
19911992199319941995
Beer
Value7,101.87.750.15,343.16,783.87,171.7
Volume443.9484.4345.8424.0448.2
Unit value16.016.015.516.016.0
Malt
Value1,304.82,540.62,218.82,551.04,273.4
Volume81.5158.8138.7159.4267.1
Unit value16.016.016.016.016.0
Stout
Value2.681.82,368.91,506.62,732.53,649.6
Volume103.191.157.9105.1140.4
Unit value26.026.026.026.026.0
Run
Value4,018.26,405.55,130.75,836.84,519.7
Volume88.3140.8112.8128.399.3
Unit value45.545.545.545.545.5
Cigarettes
Value1,737.21,833.81,669.21,386.01,240.6
Volume101.5101.992.577.068.9
Unit value17.118.018.018.018.0
Soft drinks
Value8,235.110,189.28,922.28,167.18,556.5
Volume457.5566.1495.7453.7513.1
Unit value18.018.018.018.016.7
Flour
Value9,491.69,569.09,239.99,137.810,173.9
Volume18,429.616,758.015,365.714,907.416,121.2
Unit value0.50.60.60.60.6
Food
Value2,854.33.982.74,411.84,967.94,698.0
Volume7,225.38.692.19.727.211,010.010,389.2
Unit value0.40.50.50.50.5
Paint, varnish, etc.
Value3,342.03,219.73,703.13,865.63,219.6
Volume141.8132.8151.0159.1134.0
Unit value23.624.224.524.324.0
Toilet paper
Value3,947.22,912.42,490.72,665.03,563.1
Volume116.1102.995.8102.5134.2
Unit value34.028.326.026.026.5
Source: Ministry of Finance (CSO).
Source: Ministry of Finance (CSO).
Table 6.Grenada: Consumer price Index(Index 1987=100)
Weights19911992199319941995
I. Period Averages
All items100.0115.8120.2123.6126.7129.6
Food and beverages38.7121.9122.4127.4134.0141.1
Tobacco and alcohol2.0121.4125.5127.8124.3129.2
Clothing and footwear5.2107.5111.0111.6114.9112.4
Housing17.3105.2121.5123.0123.5124.0
Fuel and light3.9113.2109.5109.4106.7108.1
Furniture and appliances2.7109.7113.1117.7120.1115.3
Transport9.1124.8125.6130.3133.9133.4
Household supplies5.6116.0120.7122.3122.7122.1
Other services15.5116.2121.8125.2126.4127.7
(Annual percentage changes)
All items2.63.82.82.62.2
Food and beverages2.20.44.15.25.3
Tobacco and alcohol1.93.41.8-2.73.9
Clothing and footwear5.13.30.53.0-2.2
Housing-0.915.51.20.40.4
Fuel and light-4.3-3.3-0.1-2.51.3
Furniture and appliances2.33.14.12.0-3.9
Transport6.80.73.72.7-0.3
Household Supplies5.54.01.40.3-0.5
Other services7.34.92.71.01.0
II. End of Period
All items100.0116.2121.6125.8128.2130.9
Food and beverages38.7120.9124.3132.8137.8144.0
Tobacco and alcohol2.0122.3127.9127.5124.6132.1
Clothing and footwear5.2109.7111.2113.3114.3112.6
Housing17.3105.2122.8123.3124.1124.4
Fuel and light3.9112.7110.3105.7108.0110.6
Furniture and appliances2.7114.3113.2122.0118.2114.3
Transport9.1125.5125.5131.9132.5132.9
Household supplies5.6119.1122.9121.8121.4122.3
Other services15.5118.4124.0125.3127.1128.0
Annual percentage changes
All Items1.04.63.51.92.1
Food and beverages-0.62.86.83.84.5
Tobacco and alcohol1.84.6-0.3-2.36.0
Clothing and footwear2.71.41.90.9-1.5
Housing-0.516.70.40.60.2
Fuel and light-13.0-2.1-4.22.22.4
Furniture and appliances4.0-1.07.8-3.1-3.3
Transport6.15.10.50.3
Household supplies6.63.1-0.8-0.30.7
Other services5.64.71.01.40.7
Source: Ministry of Finance (CSO).
Source: Ministry of Finance (CSO).
Table 7.Grenada: Operations of the Consolidated Public Sector
19911992199319941995
(In million of Eastern Caribbean dollars)
Total revenue and grants210.9203.9238.8235.2244.5
Current revenue183.4189.6203.1204.3220.2
Capital revenue2.50.20.93.1
Current grants3.52.97.53.9
Capital grants25.010.631.923.417.3
Total expenditure and divestment proceeds230.6183.5221.8239.3217.8
Current expenditure164.0167.0167.9175.9179.8
Capital expenditures66.127.853.881.851.5
Of which: public enterprises8.37.222.323.18.2
Divestment proceeds0.5-11.3-18.4-13.5
Public sector saving19.322.635.228.440.4
Central Government-3.2-3.211.20.916.7
Public enterprises8.311.99.814.07.3
National Insurance Scheme14.213.814.313.516.5
Overall balance before grants-44.89.7-14.8-27.49.3
Overall balance after grants-19.820.317.1-4.126.6
Central Government-35.2-0.9-1.3-17.49.5
Public enterprises3.69.24.33.32.5
National Insurance Scheme11.812.114.110.114.6
Financing19.8-20.3-17.14.1-26.7
External (net)8.2-3.3-3.620.7-11.9
Net loan receipts4.4-4.1-1.719.9-12.0
Exceptional financing19.413.88.4
Net change in external arrears3.80.8-1.90.80.1
Rescheduling and debt relief-19.4-13.8-8.4
Domestic (net)11.6-17.1-13.5-16.7-14.7
Commercial banks8.9-20.2-4.1-5.8-4.4
ECCB1.2-2.7-6.7-5.1-5.1
Net nonbank financing2.4-5.024.4-6.5-10.0
Exceptional financing49.9
Net change in Government's domestic arrears-0.910.6-27.10.74.8
Rescheduling and debt relief-49.9
(In percent of GDP at current market prices)
Total revenue and grants32.130.935.533.632.8
Total revenue28.328.830.429.230.0
Current revenue27.928.730.229.229.6
Current grants0.50.41.10.5
Capital grants3.81.64.73.32.3
Total expenditure and divestment proceeds35.127.833.034.229.3
Current expenditure25.025.325.025.124.2
Capital expenditures and divestment proceeds10.12.58.09.15.1
Of which: capital formation10.14.28.011.76.9
Public sector saving2.93.45.24.15.4
Central Government-0.5-0.51.70.12.2
Public enterprises1.31.71.52.01.0
National Insurance Scheme2.22.22.11.92.2
Public sector overall balance before grants-6.81.4-2.2-3.91.2
Public sector overall balance after grants-3.03.12.5-0.63.6
Central Government-5.4-0.1-0.2-2.51.3
Public enterprises0.61.30.60.50.3
National Insurance Scheme1.81.82.11.42.0
Financing3.0-3.1-2.50.6-3.6
External (net)1.3-0.5-0.53.0-1.6
Of which: Central government new arrears0.60.1-0.30.1
Domestic (net)1.7-2.6-2.0-2.4-2.0
Of which: Central government new arrears-0.21.3-11.70.40.2
Sources: Ministry of Finance; and staff estimates.
Sources: Ministry of Finance; and staff estimates.
Table 8.Grenada: Finances of the Central Government
19911992199319941995
(In millions of Eastern Caribbean dollars)
Total revenue and grants182.7170.3192.2192.3210.7
Current revenue and grants156.4162.2176.0177.9192.0
Capital revenue and grants26.28.116.114.418.8
Total revenue158.9158.9174.0170.3191.2
Current revenue156.4158.7173.1170.3188.1
Tax revenue141.4144.8155.2154.1168.4
Nontax revenue15.014.017.916.219.7
Capital revenue2.50.20.93.1
Total grants23.8l1.418.121.919.6
Current grants3.52.97.53.9
Capital grants23.87.915.214.415.7
Total expenditure and divestment proceeds217.9171.3193.5209.7201.2
Current expenditures159.6161.9161.9169.5171.4
Personal expenditure83.389.087.485.089.9
Salaries and wages77.483.282.079.784.8
Allowances5.95.95.45.35.1
Goods and services26.326.223.330.428.9
Supplies and overheads26.321.320.221.723.9
Other goods and services4.93.18.75.0
Interest payments19.917.317.416.814.6
Domestic13.813.313.613.711.5
Of which: arrears
Foreign6.14.03.83.13.0
Of which: arrears1.90.3
Transfers and subsidies30.129.333.837.438.1
Transfers abroad8.62.86.75.39.6
Transfers to households12.416.615.617.116.0
Transfers to the private sector3.52.55.93.5
Transfers to statutory boards
Grants and subventions9.16.49.19.19.0
Capital expenditures and divestment proceeds58.39.331.540.229.8
Of which: capital formation57.820.631.558.743.3
Current balance-3.2-3.211.20.916.7
Overall balance (before grants)-59.0-8.9-16.5-31.8-6.2
Overall balance (after grants)-35.2-0.9-1.3-17.49.5
Financing35.20.91.317.4-9.5
Total external financing (including arrears)8.5-1.7-2.418.6-10.9
External financing (net)4.7-2.5-0.517.8-10.9
External loans18.07.77.826.54.2
Amortization13.310.28.38.715.2
Exceptional financing19.413.88.4
Net change in arrears3.80.8-1.90.80.1
Debt relief-13.8-8.4
Rescheduled interest/principal-19.4
Total domestic financing26.22.63.7-1.11.3
Domestic financing (net)27.7-8.230.8-1.8-3.5
Financial system (net)9.8-22.4-0.9-2.5-4.7
ECCB (net)1.2-2.7-6.7-5.1-5.1
Net borrowing from commercial banks8.6-19.75.82.60.4
Nonfinancial system (net)17.914.331.70.71.2
Of which: National Insurance Scheme
Exceptional financing49.9
Net change in arrears (including float)-0.910.8-27.10.74.8
Rescheduled interest/principal-49.9
Sources: Ministry of Finance; and staff estimates.
Sources: Ministry of Finance; and staff estimates.
Table 9.Grenada: Central Government Revenue and Grants
19911992199319941995
(In millions of Eastern Caribben dollars)
Total revenue and grants182.7170.3192.2192.3210.7
Total revenue158.9158.9174.0170.3191.2
Current revenue156.4158.7173.1170.3188.1
Capital revenue2.50.20.93.1
Total grants23.811.418.121.919.6
Current grants3.52.97.53.9
Capital grants23.87.915.214.415.7
Tax revenue141.4144.8155.2154.1168.4
Taxes on income and profits27.133.736.434.843.1
Individuals0.110.512.013.718.5
Companies5.119.6
Business levy21.923.123.521.13.2
Other0.11.01.7
Taxes on property3.03.84.43.74.6
Property tax1.42.22.12.02.6
General and sewerage rates0.10.2
Inheritance tax0.10.10.8
Land transfer tax1.41.31.51.72.0
Taxes on domestic transactions22.622.325.528.230.3
vat/consumption tax13.212.212.413.815.4
Stamp duty3.02.22.12.72.5
Motor vehicle tax1.41.61.81.71.7
Licenses3.74.04.14.75.1
Airline ticket tax1.11.61.21.31.4
Other (including cruise ship tax)0.10.83.83.94.2
Taxes on international transactions88.784.988.987.490.5
Import duty28.225.721.822.523.4
Vat/consumption tax50.148.353.854.956.4
Petrol tax1.71.51.92.12.2
Exports duty0.3
Petroleum profit tax0.1
Foreign exchange tax8.79.05.10.5
Customs services charge6.37.58.5
Other taxes on international trade
Nontax revenue15.014.017.916.219.7
Airport dues0.50.50.6
Government fees and charges2.83.22.63.04.5
Post office3.43.74.12.94.0
Dividends3.43.14.43.74.5
ECCB profits3.52.13.53.33.4
Rents and interest income0.40.30.80.70.6
Miscellaneous fees and service charges1.51.51.91.91.5
Miscellaneous taxes0.7
(In percent of GDP)
Total revenue and grants27.825.828.627.528.3
Current revenue23.824.125.824.325.3
Tax revenue21.52l.923.122.022.6
Taxes on income and profits4.15.15.45.05.8
Taxes on property0.50.60.70.50.6
Taxes on domestic transactions3.43.43.84.04.1
Of which: vat/consumption tax2.01.91.82.02.1
Taxes on international transactions13.512.913.212.512.2
Of which: import duty4.33.93.23.23.1
vat/consumption tax7.67.38.07.87.6
Nontax revenue2.32.12.72.32.6
Capital revenue0.40.10.4
Total grants3.61.72.73.12.6
Current grants0.50.41.10.5
Capital grants3.61.22.32.12.1
Source: Ministry of Finance; and staff estimates.
Source: Ministry of Finance; and staff estimates.
Table 10.Grenada: Central Government Expenditure
19911992199319941995
(In millions of Eastern Caribbean dollars.)
Total expenditure and divestment proceeds217.9171.3193.5209.7201.2
Current expenditures159.6161.9161.9169.5171.4
personal expenditure83.389.087.485.089.9
salaries and wages77.483.282.079.784.8
Allowances5.95.95.45.35.1
Goods and services76.372.974.684.581.5
Supply and overheads27.821.320.221.723.9
Other goods and services (Including road maintenance)-1.54.93.18.75.0
Interest payments19.917.317.416.814.6
Domestic13.813.313.613.711.5
Of which: arrears
Foreign6.14.03.83.13.0
Of which: arrears1.90.3
Transfers and subsidies30.129.333.837.438.1
Transfers to the private sector3.52.55.93.5
Grants and subventions9.16.49.19.19.0
Transfers abroad8.62.86.75.39.6
Transfers to statutory boards
Transfers to households12.416.615.617.116.0
Of which: pensions9.68.17.99.19.0
MIS contributions2.82.62.42.72.8
Capital expenditure and divestment proceeds58.39.331.540.229.8
Capital formation57.820.631.558.743.3
Divestment proceeds0.5-11.3-18.4-13.5
(In percent of GDP at current market prices)
Total expenditure and divestment proceeds33.226.028.830.027.0
Current expenditures24.324.524.124.223.0
Personal expenditure12.713.513.012.112.1
Salaries and wages11.812.612.211.411.4
Allowances0.90.90.80.80.7
Goods and services11.611.011.112.111.0
Supply and overheads4.23.23.03.13.2
Other goods and services-0.20.70.51.20.7
Interest payments3.02.62.62.42.0
Domestic2.12.02.02.01.6
Of which: arrears
Foreign0.90.60.60.40.4
Of which: arrears0.3
Transfers and subsidies4.64.45.05.35.1
Transfers abroad1.30.41.00.81.3
Transfers to statutory boards
Other domestic transfers3.34.04.04.63.8
Capital expenditures and divestment proceeds8.91.44.75.84.0
Capital formation8.83.14.78.45.8
Divestment proceeds0.1-1.7-2.6-1.8
Sources: Ministry of Finance; and staff estimates.
Sources: Ministry of Finance; and staff estimates.
Table 11.Grenada: Operations of the National Insurance Scheme(In millions of Eastern Caribbean dollars)
19911992199319941995
Current revenue18.618.920.319.924.9
Contributions from government5.55.14.95.45.6
Government share2.82.62.42.72.8
Employee share2.82.62.42.72.8
Other contributions7.98.49.19.010.9
Other5.15.46.35.58.4
Current expenditure Of which:4.45.16.06.48.4
Wages and salaries1.01.01.01.01.0
Goods and services0.60.71.11.31.7
Current balance14.213.814.313.516.6
Capital expenditure2.41.70.23.41.9
Overall balance11.812.114.110.114.7
Financing-11.8-12.1-14.1-10.1-14.7
External (net)
Domestic (net)-11.8-12.1-14.1-10.1-14.7
Commercial banks0.70.4-6.7-2.0-2.9
Other financial institutions-3.2-3.7-3.9-8.1-11.5
Central Government-9.0-9.8-5.01.6
Nonfinancial public enterprises-0.31.1-0.61.2
Other0.1-0.12.1-3.1
Source: National Insurance Scheme.
Source: National Insurance Scheme.
Table 12.Grenada: Finances of Selected Public Enterprises 1/(In millions of Eastern Caribbean dollars)
19911992199319941995
I. Consolidation of the Public Enterprises
Current revenue63.768.674.473.144.2
Current expenditure 2/55.456.664.659.137.0
Current surplus/deficit (-)8.311.99.814.07.2
Capital transfers from government0.80.70.64.0-0.3
Capital expenditure5.95.522.119.76.3
Overall balance before grants3.27.1-11.7-1.70.5
External grants0.42.016.05.02.0
Overall surplus/deficit (-)3.69.24.33.32.5
Financing-3.6-9.2-4.3-3.3-2.5
External (net)-0.3-1.6-1.22.1-1.1
Domestic (net)-3.4-7.6-3.2-5.4-1.4
Commercial banks-0.3-0.8-3.2-6.3-1.9
Other 3/-3.1-6.80.90.5
II. Grenada Electricity Services
Current revenue28.530.035.435.4
Current expenditure 2/-22.7-23.4-29.6-25.4
current surplus/deficit (-)5.86.65.89.8
Capital transfers from government4.0
Capital expenditure4.51.74.07.2
Overall balance before grants1.34.91.86.8
External grants
Overall surplus/deficit (-)1.24.91.86.8
Financing-1.2-4.9-1.8-6.8
External (net)-0.7-1.2-0.6-0.6
Domestic (net)-0.5-3.7-1.2-6.2
Commercial banks0.2-0.4-0.9-5.9
National Insurance Scheme-0.8-2.2-0.3-0.3
Other 3/-1.2
III. Grenada Ports Authority
Current revenue3.94.65.53.26.3
Current expenditure 2/-2.8-2.8-3.2-1.7-3.7
Current surplus/deficit (-)1.21.82.31.52.6
Capital transfers from government0.10.20.3-0.3
Capital expenditure0.80.20.10.21.0
Overall balance before grants0.41.72.41.21.3
External grants
Overall surplus/deficit (-)0.41.72.41.21.3
Financing-0.4-1.7-2.4-1.2-1.3
External (net)-0.3-0.3-0.3-0.3-2.6
Domestic (net)-0.1-1.4-2.0-0.91.3
Commercial banks-0.3-1.4-1.8-1.2-0.4
Other 3/0.2-0.30.31.7
IV. National water and sewerage Authority4/
Current revenue8.211.210.311.811.2
Current expenditure 2/-6.5-7.3-9.1-9.9-7.9
Current surplus/deficit (-)1.73.91.21.93.3
Capital transfers from government0.80.50.3
Capital expenditure0.82.417.011.94.3
Overall balance before grants1.72.1-15.5-10.0-1.0
External grants0.52.016.05.02.0
Overall surplus/deficit (-)2.24.10.6-5.01.0
Financing-2.2-4.1-0.65.0-1.0
External (net)-0.2-0.4-0.33.21.7
Domestic (net)-2.0-3.7-0.31.8-2.7
Commercial banks-0.10.1-0.70.8-1.0
Other 3/-1.9-3.80.41.0-1.7
v. Marketing and National Importing Board
Current revenue15.915.415.715.218.5
Current expenditure 2/-l6. 8-16.4-15.8-14.6-17.9
Current surplus/deficit (-)-1.0-1.0-0.10.60.6
Capital transfers from government
Capital expenditure0.5O.60.10.51.8
Overall balance before grants-0.5-1.6-0.2-1.2
External grants
Overall surplus/deficit (-)-0.5-1.6-0.2-1.2
Financing0.51.60.21.2
External (net)1.00.3-0.2-0.2
Domestic (net)-0.51.30.20.21.4
Commercial banks-0.11.00.2-0.1
Other 3/-0.40.30.2-0.11.5
VI. Grenada Sugar Factory
Current revenue7.27.47.57.68.2
Current expenditure 2/-6.6-6.8-6.8-7.4-7.5
Current aurplus/daficit (-)0.60.60.60.20.6
Capital transfers from Government_
Capital expenditure0.40.60.80.8
Overall balance before grants0.3-0.20.21.4
External grants
Overall surplus/deficit (-)0.3-0.20.21.4
Financing-0.30.2-0.2-1.4
Extarnal (nat)
Domestic (nat)-0.30.2-0.2-1.4
Commercial banks0.1-0.2-0.5
Other 3/-0.20.10.1-0.9
Sources: Annual financial statements of individual enterprises; Ministry of Finance; and staff estimates.

By 1995 Granlac had ceased to be a state enterprise as the Government sold 50 percent of its shareholding in Grenlec in 1994 and 90 percent of its remaining shares in 1995.

Excludes depreciation.

Includes accumulated losses and gains for each year.

Formerly the Central Water Commission.

Sources: Annual financial statements of individual enterprises; Ministry of Finance; and staff estimates.

By 1995 Granlac had ceased to be a state enterprise as the Government sold 50 percent of its shareholding in Grenlec in 1994 and 90 percent of its remaining shares in 1995.

Excludes depreciation.

Includes accumulated losses and gains for each year.

Formerly the Central Water Commission.

Table 13.Grenada: Public Sector Investment Program, 1994-96 1/
Proj.
199419951996
(in millions of Eastern Caribbean dollars)
Total63.940.970.2
Economic sectors12.89.320.0
Agriculture8.66.57.9
Manufacturing, Mining, and quarrying3.82.011.0
Tourism0.40.81.1
Infrastructure43.720.433.1
Transportation and communication22.314.730.3
Power10.9
Water and sewerage6.75.72.8
Housing3.7
Social services4.87.211.5
Education2.85.39.6
Health and the environment1.00.41.4
Other social services1.01.50.5
Other insvestment2.64.05.6
Total investment63.940.970.2
Total financing63.940.970.2
External47.123.659.6
Domestic16.817.310.6
(In percent of Public Sector Investment Program)
Economic sectors20.022.728.5
Agriculture13.515.911.3
Manufacturing, lining, and quarrying5.94.915.7'
Tourism0.61.81.5
Infrastructure68.449.947.5
Transportation and communication34.935.943.2
Power17.1
Water and sewerage10.513.94.0
Housing5.80.4
Social services7.517.616.4
Education4.413.013.7
Health and the environment1.61.02.0
Other social services1.63.60.7
Other investment4.19.87.9
Total investment100100100
Total financing100100100
External73.757.784.9
Domestic26.342.315.1
Total PSIP in percent of GDP9.15.58.8
Sources: Ministry of Finance; and staff estimates.

This represents only project relstad investments of the public sector and is less than the total public sector capital expenditure which also includes “capital items” such as automobiles, computers, furniture, etc.

Sources: Ministry of Finance; and staff estimates.

This represents only project relstad investments of the public sector and is less than the total public sector capital expenditure which also includes “capital items” such as automobiles, computers, furniture, etc.

Table 14.Grenada: Consolidated Accounts of the Banking System
December
1991199219931993 1/19941995
(In millions of Eastern Caribbean dollars)
Net foreign assets37.163.767.468.4107.1153.3
Net imputed reserves48.169.972.772.784.199.1
Commercial banks’ net foreign assets-11.0-6.1-5.3-4.323.054.2
Net domestic assets309.0311.2334.4385.6396.3397.4
Net credit to the public sector81.356.145.746.333.027.7
Central Government77.254.853.955.252.752.7
Credit from ECCB37.735.028.328.323.221.8
Credit from commercial banks39.519.825.626.929.431.0
National Insurance Scheme-2.6-2.2-8.8-8.8-10.8-15.1
Nonfinanclal public enterprises6.73.50.6-0.1-8.9-10.0
Net credit to other financial institutions-22.1-16.3-19.0-19.9-23.7-27.9
Credit to private sector287.5315.0353.9400.8413.0437.5
Other assets (net)-37.6-43.6-46.2-41.7-26.1-39.9
Money plus quasi-money346.1375.0401.8454.0503.3550.7
Money80.7100.9105.2109.7123.0131.6
Quasi-money265.4274.0296.6344.3380.4419.0
(Percentage Change)2/
Net foreign assetss-1.57.71.08.59.2
Net domestic assets6.80.66.22.40.2
Net credit to the public sector2.5-7.3-2.8-2.9-1.1
Central Government3.0-6.5-0.2-0.6
National Insurance Scheme0.20.1-1.8-0.4-0.9
Nonfinancial public enterprises-0.7-0.9-0.8-2.0-0.2
Credit to private sector5.37.910.42.74.9
Other assets (net)-1.0-1.7-0.73.4-2.7
Money plus quasi-money5.38.37.210.99.4
Sources: Eastern Caribbean Central Bank; and staff estimates.

Includes the assets and liabilities of the Grenada Cooperative Bank which were added to the monetary statistics of the ECCB in 1993.

In relation to M2 at the beginning of the period. In 1993 comparison refers to changes in assets and liabilities of the banking system excluding the Grenada Cooperative Bank.

Sources: Eastern Caribbean Central Bank; and staff estimates.

Includes the assets and liabilities of the Grenada Cooperative Bank which were added to the monetary statistics of the ECCB in 1993.

In relation to M2 at the beginning of the period. In 1993 comparison refers to changes in assets and liabilities of the banking system excluding the Grenada Cooperative Bank.

Table 15.Grenada: Operations of the Eastern Caribbean Central Bank in Grenada(In million of Eastern Caribbean dollars)
December
1991199219931993 1/19941995
Net (inputed) inter National reserves2/48.169.972.772.784.199.1
Net claims on commercial banks-45.4-58.2-54.5-54.5-55.5-67.1
Claims0.50.50.30.1
Loans
Long-tern loans0.30.1
Balances with banks0.50.5
Liabilities45.458.254.954.955.867.1
Currency held by banks13.610.517.017.015.217.2
Statutory reserves 3/23.326.234.834.8
Statutory deposits
Current deposits 3/5.416.2—-33.638.5
Fixed deposits3.15.43.23.27.111.4
Net domestic assetss37.735.028.328.323.221.8
Net credit to Central Govornment37.735.028.328.323.221.8
Short-term credit14.514.75.95.92.32.8
Temporary advances4.39.02.62.60.6
Treasury bills10.25.73.33.32.32.3
Debentures6.63.76.66.66.66.6
Other claims16.616.615.915.915.512.4
Central government sinking funds deposits
Central government other deposits-1.4
Net credit to rest of public sector
Credit to private sector
Net unclassified assets
Liabilities to the private sector40.446.746.646.651.853.8
Source: Eastern Caribbean Central Bank; and commercial banks.

Includes the assets and liabilities of the Grenada Cooperative Bank which were added to the monetary statistics of the ECCB in early 1993.

Refers to the imputed share of Grenada in the international reserves of the ECCB.

Statutory reserves were classified with current deposits beginning in 1994.

Source: Eastern Caribbean Central Bank; and commercial banks.

Includes the assets and liabilities of the Grenada Cooperative Bank which were added to the monetary statistics of the ECCB in early 1993.

Refers to the imputed share of Grenada in the international reserves of the ECCB.

Statutory reserves were classified with current deposits beginning in 1994.

Table 16.Grenada: Consolidated Accounts of the Commercial Banks(In millions of Eastern Caribbean dollars)
December
1991199219931993 1/19941995
Net foreign assets-11.0-6.1-5.3-4.323.054.2
Foreign assets48.775.491.096.3134.1159.5
Foreign currency holdings3.52.23.23.23.03.5
Claims on ECCB area banks5.122.717.817.827.715.9
Claims on banks abroad30.440.953.353.365.171.0
Other9.89.616.722.038.469.0
Foreign liabilities59.781.696.3100.6111.1105.2
Balance due to ECCB area banks0.31.50.70.70.50.6
Balances due to banks abroad4.015.920.320.321.614.8
Nonresident deposits54.363.875.279.588.889.6
Other1.20.50.10.10.30.3
Net position with ECCB43.155.448.053.054.656.8
Claims on ECCB43.155.548.253.154.656.9
Currency holdings13.610.514.917.015.217.2
Statutory reserves 2/24.126.428.630.8
Statutory deposits
Current deposits 2/2.89.91.92.629.130.6
Fixed deposits and call accounts2.78.82.72.710.49.1
Liabilities to ECCB-0.2-0.1-0.1
Net domestic assets273.6279.0312.5358.7374.0385.8
Net credit to Government39.519.825.626.929.431.0
Treasury bills11.912.012.912.911.711.6
Other securities13.59.111.713.117.216.5
loans and advances18.313.412.512.514.118.3
Deposits-4.2-14.7-11.5-11.5-13.6-15.5
Net credit to National Insurance Scheme-2.6-2.2-8.8-8.8-10.8-15.1
Loans, advances, and investments0.20.2
Deposits-2.8-2.4-8.8-8.8-10.8-15.1
Net credit to public enterprises6.73.50.6-0.1-8.9-10.0
Loans, advances, and investments11.09.49.79.76.76.1
Deposits-4.3-5.9-9.1-9.8-15.6-16.1
Net credit to other financial institutions-22.1-16.3-19.0-19.9-23.7-27.9
Loans, advances, and investments0.32.24.34.84.25.8
Deposits-22.5-18.5-23.3-24.7-27.9-33.7
Credit to private sector287.5315.0353.9400.8413.0437.5
Interbank float-2.8-7.0-11.0-2.02.20.9
Claims5.44.63.613.113.924.2
Liabilities-8.1-11.6-14.6-15.2-11.7-23.3
Net unclassified assets-32.6-33.8-28.8-38.2-27.4-30.6
Liabilities to the private sector305.7328.3355.2407.4451.6496.9
Demand deposits40.354.358.663.171.277.8
Savings deposits172.2173.7200.4233.0267.8292.9
Time deposits83.990.482.597.694.7108.1
Forign currency deposits9.39.913.813.817.918.1
Loans/deposits ratio (in percent) 3/89.585.587.387.784.790.4
Liquidity ratio (in percent) 4/15.421.118.418.724.619.4
Source: Eastern Caribbean Central Bank.

Includes the assets and liabilities of the Grenada Cooperative Bank which were added to the monetary statistics of the ECCB in early 1993.

Statutory reserves were classified with current deposits beginning in 1994.

Loans and advances, treasury bills, investments, and commercial bills discounted divided by total deposits (domestic and foreign).

The sum of cash, current and fixed deposits at the ECCB, and claims on domestic and foreign banks divided by the sum of deposits, borrowing from the ECCB, and balances due to domestic and foreign banks.

Source: Eastern Caribbean Central Bank.

Includes the assets and liabilities of the Grenada Cooperative Bank which were added to the monetary statistics of the ECCB in early 1993.

Statutory reserves were classified with current deposits beginning in 1994.

Loans and advances, treasury bills, investments, and commercial bills discounted divided by total deposits (domestic and foreign).

The sum of cash, current and fixed deposits at the ECCB, and claims on domestic and foreign banks divided by the sum of deposits, borrowing from the ECCB, and balances due to domestic and foreign banks.

Table 17.Grenada: Distribution of Commercial Bank Loans and Advances
199119921993 1/19941995
(In millions of Eastern Caribbean dollars)
Total327.0348.2455.3454.6488.3
Public sector30.526.142.040.645.7
Government and public enterprises, n.i.e.17.411.612.317.617.4
Public utilities 2/13.114.429.723.028.3
Businesses176.4198.1225.3217.0234.1
Agriculture and fisheries8.511.413.47.18.1
Manufacturing and mining26.437.729.726.726.7
Distributive trades71.068.579.472.283.8
Tourism and entertainment32.532.152.751.655.5
Transport13.515.320.420.022.7
Construction and land development13.315.216.022.117.1
Professional and other services9.314.510.913.117.4
Financial institutions2.03.52.84.22.8
Households120.0123.9188.0197.0208.5
House and land purchases70.667.1105.1117.3127.1
Durable consumer goods16.117.819.518.420.4
Other33.239.163.461.361.0
(In percent of total)
Public sector9.37.59.28.99.4
Government and public enterprises, n.i.e.5.33.32.73.93.8
Public utilities4.04.16.55.16.2
Businesses54.056.949.547.747.9
Agriculture and fisheries2.63.52.91.61.8
Manufacturing and mining8.110.86.55.95.9
Distributive trades21.720.917.415.918.4
Tourism and entertainment9.99.811.611.412.2
Transport4.14.44.54.45.0
constuction and land development4.14.43.54.93.8
profestional and other services2.84.22.42.93.8
Financial institutions0.61.00.60.90.6
Households36.735.641.343.342.7
House and land purchases21.619.323.125.828.0
Durable consumer goods4.95.14.34.04.5
Other10.211.213.913.513.4
Source: Ministry of Finance (CSO).

Including the Grenada Cooperative Bank's operations which were added to ECCB monetary statistics starting 1993.

Includes in 1994 ECS19.8 million for utility services provided by the private sector.

Source: Ministry of Finance (CSO).

Including the Grenada Cooperative Bank's operations which were added to ECCB monetary statistics starting 1993.

Includes in 1994 ECS19.8 million for utility services provided by the private sector.

Table 18.Grenada: Structure of Commercial Banks' Interest Rates
Period EndedSavings

Deposits
Time DepositsPrime

Landing
Other

Landing

Rates
3 Months6 Months12 Months
December
19884.0-5.04.0-5.04.0-5.54.0-6.010.5-10.510.5-15.0
19894.0-5.04.0-6.04.0-6.54.0-7.010.5-10.510.5-15.0
19904.0-5.04.0-7.04.0-7.54.0-8.010.5-10.510.5-15.0
19914.0-5.04.0-8.04.0-6.54.0-7.010.5-10.510.5-15.0
19924.0-5.02.0-5.02.0-5.52.5-6.010.5-10.510.5-16.0
19934.0-5.01.5-6.01.5-5.51.5-6.010.0-10.510.0-16.0
19944.0-5.01.5-4.01.5-4.51.5-6.510.0-10.510.5-16.0
19954.0-5.01.5-4.01.5-4.51.5-6.59.5-10.59.5-16.0
1994
March4.0-5.51.5-4.01.5-4.51.5-5.510.0-10.510.0-16.0
June4.0-5.51.5-4.01.5-4.51.5-5.510.0-10.510.0-16.0
September4.0-5.31.5-4.01.5-4.51.5-5.59.5-10.59.5-16.0
December4.0-5.51.5-4.01.5-4.51.5-6.59.5-10.59.5-16.0
1995
March4.0-5.01.5-4.01.5-4.51.5-6.59.5-10.59.5-16.0
June4.0-5.01.5-4.01.5-4.51.5-6.59.5-10.59.5-16.0
September4.0-5.01.5-4.01.5-4.51.5-6.59.5-10.59.5-16.0
December4.0-5.01.5-4.01.5-4.51.5-6.59.5-10.59.5-16.0
Source: Eastern Caribbean Central Bank.
Source: Eastern Caribbean Central Bank.
Table 19.Grenada: Balance of Payments(In millions of U.S dollars)
19911992199319941995
Current account balance-37.3-22.1-37.2-29.5-13.6
Goods and services-39.9-26.0-36.4-35.3-19.3
Goods-88.6-81.6-96.6-107.3-97.9
Merchandise exports (f.o.b.)24.921.521.524.621.6
Merchandise imports (f.o.b.)113.5103.2118.1131.9119.6
Services48.755.660.272.078.6
Transportation-13.0-12.0-14.4-19.0-19.7
Travel61.667.374.691.695.5
Insurance-4.7-5.8-6.5-7.3-4.4
Other4.86.26.46.77.2
Income-7.5-6.8-9.5-8.8-8.4
Compensation of employees0.10.1
Investment income-7.2-6.4-9.2-8.9-8.5
Receipts2.83.32.73.54.4
RCCB profits1.21.21.31.31.3
Other interest, profits, dividends1.62.11.42.23.1
Payments10.09.811.912.412.8
Direct investment5.86.17.27.68.1
Official - Interest payments2.32.52.52.12.0
Commercial banks0.91.11.11.11.1
Other1.11.11.51.6
Other factor income (net)-0.3-0.4-0.3
Current transfers10.110.88.714.714.2
General government-0.80.1-1.42.81.4
Other sectors10.910.710.111.912.7
Workers' remittances10.910.710.112.713.6
Other transfers-0.8-0.9
Capital and financial account36.129.738.938.919.5
Capital account17.212.420.021.518.2
Capital transfers17.212.420.021.518.2
Public sector9.03.911.810.36.5
Debt forgiveness3.1
Other9.03.911.87.26.5
Other8.28.58.211.211.7
Migrants transfers8.28.58.211.211.7
Debt forgiveness
Other
Acquisition and disposal of nonproduced
financial assets
Financial account18.917.318.917.41.2
Direct investment15.326.717.219.312.7
Abroad-2.0-2.2
In reporting economy15.326.717.221.414.9
Equity11.919.911.67.34.6
Retained earnings1.41.91.11.81.8
Land sales1.54.44.08.14.1
Other0.40.50.54.24.4
Other Investment3.5-9.41.7-1.9-11.5
Public sector1.6-1.5-0.67.4-0.9
Drawings6.72.92.911.03.3
Central government6.72.92.99.81.6
Public enterprises1.21.7
Amortization5.04.43.53.64.2
Commercial banks2.0-1.8-0.7-10.1-11.6
Assets0.5-9.9-7.7-14.0-9.4
Liabilities-1.6-8.1-7.1-3.92.2
Other private-6.13.00.81.0
Insurance companies-2.5-2.6-2.6-3.8-4.2
Construction1.71.81.81.91.9
Other0.8-5.33.82.73.3
Change in reserve assets1.2-7.7-9.4-9.4-5.4
Change in arrears-5.8-4.8-0.7-1.70.1
Debt rescheduling
Debt forgiveness7.25.1-3.1
Change in SDR holdings
Change in reserve position with IMF
Change in government foreign assets0.1-0.4-0.4
Change in ECCB imputed reserves-0.2-8.1-1.0-4.2-5.6
Financing gap
Net errors and omissions
Memorandum items,-
Current account balance/GDP-15.3-9.0-14.9-11.4-4.9
Imports/GDP46.642.247.550.943.4
Migrant transfers/GDP3.43.53.34.34.2
Gross travel receipts66.671.078.795.8100.0
Percentage change in:
Exports-10.6-13.6-0.114.3-11.9
imports-9.5-9.114.511.6-9.4
Net travel8.09.210.922.74.3
GDP at market prices (US$)243.4244.4248.9259.1275.7
ECCB reserves (millions of US$)17.825.926.931.136.7
Months of imports1.93.02.72.83.7
Sources: Eastern Caribbean Central Bank (ECCB); and staff estimates.
Sources: Eastern Caribbean Central Bank (ECCB); and staff estimates.
Table 20.Grenada: Merchandise Exports, f.o.b.
19911992199319941995
(Values in millions of Eastern Caribbean dollars, volumes in millions of pounds, and unit values in U.S. dollars per pound)
Total exports24.921.521.524.621.6
Re-exports3.13.24.04.52.3
Domestic exports21.818.417.520.119.3
Banana
Value3.72.91.82.11.9
Volume15.313.910.89.99.8
Unit values0.20.20.20.20.2
Cocoa
Value3.12.63.12.93.3
Volume3.52.93.52.83.1
Unit value0.90.90.91.11.1
Nutmeg
Value3.52.32.64.53.1
Volume3.24.04.76.53.9
Unit value1.10.60.60.70.8
Mace
Value1.00.60.60.70.6
Volume0.50.40.60.60.2
Unit value1.81.51.11.22.9
Fresh fruit and vegetables
Value1.81.51.50.71.1
Clothing
Value1.70.70.51.11.3
Fish
Value1.81.92.43.13.4
Other
Value5.15.85.05.14.5
(percentages change)
Total exports-10.6-13.6-0.114.3-11.9
Banana
Value-4.9-23.1-36.816.3-9.9
Volume-9.5-9.6-22.1-8.1-0.8
Unit value3.5-18.826.6-9.2
Cocoa
Value16.9-14.619.0-5.412.7
Volume7.1-17.322.9-21.713.5
Unit value9.23.2-3.120.7-0.7
Nutmeg
Value-47.3-34.613.971.6-31.1
Volume-18.624.220.136.0-39.5
Unit value-35.3-47.3-5.226.213.8
Mace
Value-15.3-40.50.910.411.6
Fresh fruit and vegetables
Value106.1-13.7-1.2-55.055.4
Clothing
Value47.0-60.7-31.7127.924.8
Fish
Value8.95.024.028.811.2
Other
Value5.613.9-14.51.4-10.3
Sources: Statistics Department, Ministry of Finance; Growers' Associations; and staff estimates.
Sources: Statistics Department, Ministry of Finance; Growers' Associations; and staff estimates.
Table 21.Grenada: Merchandise Imports, c.i.f.
19911992199319941995
(In millions of U.S. dollars)
Total imports127.5116.0133.2147.7134.3
Recorded imports117.2106.6125.5135.9123.5
Food28.027.528.530.632.0
Beverages and tobacco2.12.13.12.42.5
Crude materials3.03.03.84.64.0
Fuel8.78.615.69.29.4
Animal and vegetable oils0.50.40.50.50.7
Chemicals10.010.010.710.310.6
Manufactured goods23.720.424.026.723.2
Machinery and transport equipment28.424.224.732.726.4
Miscellaneous manufactured goods13.010.414.618.914.7
Unrecorded imports10.39.47.711.810.8
Total imports (percent of GDP)52.447.453.457.948.7
(In percent of recorded imports)
Food23.925.822.722.525.9
Beverages and tobacco1.82.02.51.82.0
Crude materials2.62.83.03.43.2
Fuel7.48.112.46.87.6
Animal and vegetable oils0.40.40.40.40.6
Chemicals8.59.48.67.68.6
Manufactured goods20.219.119.119.618.8
Machinery and transport equipment24.222.719.724.121.4
Miscellaneous manufactured goods11.19.811.613.911.9
(Percentage change)
Total imports10.6-9.114.910.9-13.4
Recorded imports7.6-9.117.78.3-9.1
Food1.2-1.83.77.44.6
Beverages and tobacco-13.91.046.0-22.64.2
Crude materials-24.2-2.127.821.1-13.0
Fuel16.1-0.580.2-41.02.2
Animal and vegetable oils3.6-9.117.740.0
Chemicals1.80.57.2-3.72.9
Manufactured goods15.7-14.017.811.3-13.1
Machinery and transport equipment16.2-14.72.029.5-22.2
Miscellaneous manufactured goods16.2-19.739.329.5-22.2
Unrecorded imports30.3-9.1-17.653.2-8.5
Sources: Statistics Department. Ministry of Finance: and staff estimates.
Sources: Statistics Department. Ministry of Finance: and staff estimates.
Table 22.Grenada: Terms of Trade(Indices 1987 = 100)
19911992199319941995
Bananas87.390.473.392.884.3
Cocoa83.486.183.3100.699.9
Nutmeg40.821.520.425.729.3
Mace36.630.221.423.158.5
Nontraditional agricultural102.4104.0102.1107.3116.0
Manufacturing112.7113.3107.3111.8118.0
Total merchandise exports 1/78.673.566.875.277.7
Percentage change-8.7-6.6-9.112.63.3
Tourism index 2/117.9121.6120.8125.3130.7
Percentage change1.23.2-0.73.84.4
Export prices (composite index) 3/104.1104.8102.2108.2113.1
Percentage change-1.70.7-2.55.94.5
Import prices 4/112.7113.3107.3111.4115.4
Percentage change-3.20.5-5.33.93.5
Merchandise terms of trade69.764.862.367.767.6
Percentage change-5.5-7.1-3.88.7-0.2
Total terms of trade 5/92.492.595.396.895.8
Percentage change1.60.23.01.6-1.0
Sources: Ministry of Finance; and staff estimates.

Weighted by the share of each component in total in 1990.

Based on growth rates of hotel room rates and private sector wages.

Weighted by the average shares in exports of goods and tourism (35 percent for merchandise exports and 65 percent for tourism).

Based on export unit values of Grenada partner suppliers, weighted by Grenada's imports.

Includes tourism.

Sources: Ministry of Finance; and staff estimates.

Weighted by the share of each component in total in 1990.

Based on growth rates of hotel room rates and private sector wages.

Weighted by the average shares in exports of goods and tourism (35 percent for merchandise exports and 65 percent for tourism).

Based on export unit values of Grenada partner suppliers, weighted by Grenada's imports.

Includes tourism.

Table 23.Grenada: Selected Tourism Data
19911992199319941995
Total arrivals (thousands)288.0290.6301.8317.6362.2
Stayovar visitors69.171.977.892.289.6
United States23.624.430.430.530.0
Canada4.64.24.25.03.9
West Indies15.115.813.714.714.7
United Kingdom10.710.311.217.718.5
Germany4.45.46.07.36.3
Other10.711.812.317.016.1
Cruiseship passengers196.1195.9200.1200.8249.9
Nonresident Grenadians16.015.716.216.718.1
Excursionists6.87.27.87.94.6
Volume of tourism) (thousand days)834.3838.2862.3977.61,018.9
Stayovar visitors517.9524.8560.7669.8662.5
Cruiseship passengers156.9156.7140.0140.6174.9
Nonresident Grenadians159.5156.7161.6167.3181.5
Weighted daily expenditure
per visitor (US$)80.685.691.398.098.1
Stayovar visitors112.5119.1124.3129.0133.8
Cruiseship passengers25.037.338.439.440.3
Nonresident Grenadians15.021.922.523.123.6
Total expenditure (US$ million)67.371.878.795.8100.0
Stayovar visitors58.362.569.786.488.6
Cruiseship passengers5.65.95.45.57.0
Nonresident Grenadians3.43.43.63.94.3
(Percentage share of Stayovar visitors)
United States34.234.039.133.033.5
Canada6.75.85.45.44.4
West Indies21.822.017.616.016.4
United Kingdom15.414.314.419.220.6
Germany6.37.57.77.97.1
Other15.516.415.818.418.0
(Annual percentage changes)
Total arrivals8.60.93.85.314.0
Stayovar visitors4.94.18.218.6-2.9
Total expenditure (US$ million)7.811.19.721.74.3
Volume of tourism (days)2.30.52.913.44.2
Sources: Grenada Tourist Board; Ministry of Finance; and staff estimatas.
Sources: Grenada Tourist Board; Ministry of Finance; and staff estimatas.
Table 24.Grenada: Summary of Public and Publicly Guaranteed External Debt(In millions of U.S. dollars)
19911992199319941995
Debt outstanding at end-year94.787.690.192.497.3
Valuation adjustment-2.13.1-3.45.7
Drawings on official debt6.72.92.911.03.3
Scheduled debt obligations7.36.96.05.76.2
Interest2.32.52.52.12.0
Principal5.04.43.53.64.2
Actual debt-service payments13.111.76.77.46.1
Of which:
Change in arrears-5.8-4.8-0.7-1.70.1
Principal-3.3-3.5-1.70.1
Interest-2.5-1.3-0.7
Stock of arrears (end of year)15.110.39.67.98.0
Interest2.31.00.30.30.3
Principal12.89.39.37.67.7
Memorandum items
Debt outstanding/GDP38.935.836.235.735.3
Debt-service obligations/exports
of goods and nonfactor services6.25.64.63.74.1
Stock of arrears/GDP6.24.23.93.02.9
Average interest rate
(in percent)2.32.52.82.42.2
Sources: Ministry of Finance; and staff estimates.
Sources: Ministry of Finance; and staff estimates.
Table 25.Grenada: External Public Debt by Creditor(In millions of U.S. dollars)
19911992199319941995
Total debt (end of period)1/94.687.590.192.497.3
Central government debt77.871.268.772.468.0
Official creditors61.455.757.260.457.3
Caribbean Development Bank18.819.820.621.718.9
OPEC Fund3.13.12.62.52.5
United Kingdom8.97.27.37.36.3
Government of Algeria1.01.11.21.31.3
European Investment Bank0.50.50.72.82.8
German Democratic Republic 2/5.1
Government of Libya5.05.05.05.05.0
IBRD/IDA6.86.77.27.27.6
International Fund for Agricultural
Development (IFAD)1.71.72.21.41.1
Government of Taiwan10.010.210.010.010.0
Venezuelan Investment Fund (VIF)0.50.40.41.61.8
Commercial creditors16.415.514.012.010.7
United Kingdom15.314.312.811.09.8
Cable and Wireless3.53.73.73.03.0
Plessey Airports, Ltd. 3/11.810.69.18.06.8
Bank of Brazil0.10.1
Capital Bank of Washington0.40.40.50.40.4
Metex0.60.70.70.60.5
Bank of Nova Scotia, Plessey loan
Government-guaranteed debt16.816.318.920.029.3
Official borrowing15.915.818.720.029.3
Caribbean Development Bank11.210.913.113.725.7
Export Development Corporation of Canada
Canadian International Development Agency
Commonwealth Development Corporation, U.K.0.1
European Investment Bank4.64.95.05.01.3
Caisse Centrale0.61.32.3
Commercial borrowing0.90.50.2
Barclays Bank0.90.50.2
Canada (Northern Telecom)
Sources: Ministry of Finance; annual statements of the public enterprises; and staff estimates.

Outstanding debt figures include valuation adjustments of exchange rate changes and other stock adjustments.

The outstanding amount of this debt was canceled in early 1992 following a payment of US$1.1 million.

Arrears on this loan were rescheduled in late 1991.

Sources: Ministry of Finance; annual statements of the public enterprises; and staff estimates.

Outstanding debt figures include valuation adjustments of exchange rate changes and other stock adjustments.

The outstanding amount of this debt was canceled in early 1992 following a payment of US$1.1 million.

Arrears on this loan were rescheduled in late 1991.

Table 26.Grenada: Arrears on External Public Debt(In millions of U.S. dollars)
19911992199319941995
PrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotalPrincipalInterestTotal
Total arrears12.82.315.19.31.010.39.30.39.67.60.37.97.70.38.8
Official creditors12.42.114.58.90.09.78.90.29.17.20.17.37.20.17.3
Caribbean Development Bank0.30.3
OPEC Fund2.02.02.02.02.02.0
United Kingdom0.20.20.00.80.90.91.61.61.61.6
Algeria0.60.41.00.60.61.20.60.10.70.60.10.70.60.10.7
German Democratic Republic 1/3.6l.55.1
Libya5.05.05.05.05.05.05.05.05.05.0
IFAD0.40.20.60.40.20.60.40.20.60.40.10.5
VIF0.10.10.10.1
EDB0.20.2
Commercial creditors0.40.20.60.40.20.60.40.10.50.40.20.60.50.20.7
Metex0.40.20.60.40.20.60.40.10.50.40.20.60.50.20.7
Plessey Airport Ltd.2/
Sources: Ministry of Finance; Annual Statements of the public enterprises; and staff estimates.

The outstanding amount of this debt was canceled in early 1992 following a negotiated one-time payment of US$1.1 million.

Arrears on this loan were rescheduled in late 1991.

Sources: Ministry of Finance; Annual Statements of the public enterprises; and staff estimates.

The outstanding amount of this debt was canceled in early 1992 following a negotiated one-time payment of US$1.1 million.

Arrears on this loan were rescheduled in late 1991.

Table 27.Grenada: Effective Exchange Rates(1980 = 100)
Real

Effective Rate
Nominal

Effective Rate
Quartely averages
1991I103.5116.1
II108.5122.6
III108.3123.6
IV105.2121.3
1992I106.6122.1
II106.3121.6
III101.8117.7
IV108.6125.4
1993I111.5128.7
II114.3132.4
III115.7135.1
IV116.8136.5
1994I117.8137.9
II116.6137.2
III114.3134.3
IV112.9133.2
1995I111.4132.5
II109.5130.1
III110.5131.4
IV112.0132.4
End of period exchange rate index
1991103.7119.9
1992109.8126.5
1993117.9137.3
1994113.6134.4
1995112.5133.4
Source: IMF Information Notice System.
Source: IMF Information Notice System.

Grenada: Tax changes, 1991-96

1. 1991

a. Property tax

On June 5 the real property tax was modified with retroactive effect from January 1, 1991, to exempt the first EC$30,000 of the value of a principal residence and to tax all land at 1/5 of 1 percent of the assessed value with the first 1/4 acre on which a principal residence is located exempt from tax.

b. Imported duty

On December 31, 1990 Grenada enacted the CARICOM Common External Tariff (CET). Full implementation of the CET depends on the enforcement of the Rules of Origin and the GATT Valuation Code.

On January 18, the Customs Act was amended to provide a schedule (Valuation Code) defining the value of dutiable goods.

On April 29, the Statutory Rules and Orders (SRO) No. 6 were enacted, with effect from May 1, setting the minimum rates of ad valorem import duties, in conformity with the CET. The new common minimum rates remain in the previous range of 5 to 45 percent, but the rates applied to specific products are generally higher under the new tariff than were Grenada's previous rates. SRO No. 8 also defines the list of goods which Grenada may exempt from duty under the CET, including the right to refuse to grant full duty exemption for any goods eligible under SRO No. 8 and to instead apply a level of import tariff on such goods not higher than that provided in the Schedule of Tariff Rates. The latter provision limits substantially the extent of change from Grenada's previous duty-exemption list. Moreover, the Minister of Finance may provide specific exemptions on a case-by-case basis. In cases where the rate of the import duty has been raised to a level considered socially equitable, the rates for the same goods under the import VAT and surcharge have been lowered to offset the impact.

On May 26, the Statutory Rules and Orders (SRO) No. 10 of 1991 were enacted with effect from June 1, 1991, establishing the CET Origin of Goods Regulations.

On August 29, the CET was amended to alter the rates of more than 40 categories of import items. The effect of the changes was to lower the average rate applicable.

c. Value-added tax on imports

On June 19, the value-added tax was amended to revise the rates of import value-added tax on beef, ham, chicken and turkey, rum, gasoline, diesel fuel, motor vehicles, new and used spare parts for motor vehicles, and lumber. As a percentage of the c.i.f. value plus the import duty, the new rates ranged from 20 to 62.5 percent. For fuel imports the Act took effect on April 21, and for all other products on June 21.

On September 19, the value-added tax was amended to clarify that any imported goods or service upon which the customs duty is paid is likewise subject to the VAT on imports. In practice, the change extends the coverage of the VAT on imports to items previously not subject to it.

d. Customs duty surcharge

On June 19, the surcharge was amended under SRO No. 12 to replace one of the schedules of items covered by the surcharge by another group of items, including meat, poultry, butter, cheese, sardines, rum, several categories of motor vehicles, new and used motor vehicle tires, and lumber.

e. Licenses fees

On February 12, the Motor Vehicles and Road Traffic Act was amended to increase the fee for driving and learners' permits from EC$30.00 each to EC$60.00 each.

f. Other taxes

On January 2, birth and death certificate fees were raised. The new range of fees is from EC$0.50 to EC$10.00.

On May 27, the ticket tax was amended to exempt persons traveling for emergency medical reasons.

On September 19, the levy on cruise-ship visitors was increased from US$1.00 per head to US$2.00 per head with effect from January 1, 1992.

2. 1992

a. Debt-service levy

On March 1, the debt-service levy was amended with effect from January 1, 1992 to replace the previous unitary rate of 10 percent with progressive rates as follows:

Up to $10,000 annual incomes0 percent
$10,001 - $20,00010 percent
$20,001 - $36,00020 percent
Over $36,00025 percent

b. Value-added tax

On March 1, a value-added tax of 5 percent was imposed on various commodities previously exempted from VAT including sugar, breakfast cereals, rice, milk (condensed and evaporated), chicken parts, sardines, cheese, and chilled and frozen vegetables.

c. Property tax

On March 1, the property tax was modified to provide for exemption of the first EC$25,000 of land attached to a house rather than the first 1/4 acre, and to raise the exemption for one's principal residence from EC$30,000 to EC$40,000.

d. Ticket tax

On March 1, the ticket tax was amended to remove the exemption for students travelling abroad on vacation; students on study travel are still exempted.

e. Import taxes

On July 28, exemptions from import taxes for most statutory bodies were removed; however, GRENLEC fuel imports continue to be exempt. In addition, various exemptions remain for many organizations and individuals. GRENTEL, the telephone company privatized by the Government in 1989, continues to be exempt from all import duties until the year 2005.

3. 1993

a. Extra regional customs surcharge

On December 30, 1992 it was announced that the 10 percent extra regional customs charge would be removed with effect from January 1, 1993.

b. Customs service charge

With effect from January 1, a customs service charge of 2.5 percent was placed on all imports. However, the imports of GRENTEL remained exempt from this tax as specified in a 1989 ACT under which the company was incorporated. This Act exempts GRENTEL from payment of all forms of import duties until 2005.

c. Foreign-exchange tax

With effect from January 1, the foreign-exchange tax was reduced from 5.0 percent to 2.5 percent and all exemptions to the tax were eliminated.

d. Annual stamp tax

The annual stamp tax which became effective on January 1, 1992 was not implemented that year. With effect from January 1, 1993 collections for both the current and previous years were to be effected. (The difficulties with respect to the legal interpretation of various aspects of the annual stamp tax, which had delayed its implementation in 1992, persisted into 1993. The issues were resolved in the first half of the year and notices of assessment began to be posted to taxpayers from July 1993.)

e. Property tax

The Property Tax Roll was updated to include approximately 3000 properties that were previously not included.

f. The Common External Tariff

On July 1, 1993, the revised Common External Tariff was introduced which reduced the maximum tariff rate from 45 to 35 percent.

g. Value-added tax

Also on July 1, 1993, the VAT on imported goods which consisted of 12 different rates was reduced to a regime of 4 rates. The existing rates are: zero-rated items, two rates of 15 and 25 percent, respectively, and a “luxury rate” of 55 percent. In order to compensate for the expected losses from the reduction in other taxes the number of zero-rated items were reduced and certain goods were reclassified and subjected to higher VAT rates.

4. 1994

a. Personal income tax

In the last quarter of 1994 the Parliament approved a new income tax law which will replace the current taxes on income and profits known as the debt-service levy and business levy, respectively. The new system was made retroactive to January 1, 1994. The important features of the system were the following:

  • (1) Each taxpayer is treated independently, there is no aggregation of the income of married persons.
  • (2) Individual income subject to taxation includes, in addition to employment income, interest income, rental income, business profits (sole traders), and dividends.
  • (3) All taxpayers are entitled to certain basic allowances, given by a credit method at a 10 percent rate. The allowances are the following:
Individual taxpayer$10,000Credit1,100
Dependent spouse$ 1,500Credit150
Dependent child$ 1,000Credit100
(Maximum of three children)($ 3,000)(300)

(4) The tax on personal income consists of four progressive bands:

10 percent - on first $20,000

20 percent - on the next $15,000 of income between $20,001-$35,000

25 percent - on the next $15,000 of income between $35,001-$50,000

30 percent - on income over $50,000

b. Withholding tax

A withholding tax of 10 percent applies to bank interest in excess of EC$50 per month and on all dividends. Since gross income will include both interest and dividends, the withholding tax will be offset against the tax liability the individual.

c. Corporation tax

The business lavy was replaced by the corporation tax which for income year 1994 is as follows:

30 percent on profits of EC$45,000 or less

35 percent on profits over EC$45,000.

The intention is to consolidate the rates into a single rate of 30 percent in 1995.

d. Property tax

The existing rates of 0.2 percent for land and 0.5 percent for buildings were consolidated into a single rate of 0.2 percent on the value of the property (house and land). The previous deductions of EC$25,000 for land and EC$40,000 on occupied buildings was replaced by a deduction of $100,000 in respect of the value of the property.

e. Value-added tax

The value-added tax (external and domestic VAT) was renamed as a general consumption tax. Before the legislation was finalized in late 1994, the following changes were made to the existing value-added tax system;

(1) External VAT

The VAT on certain imported household items such as washing machines, ovens, and electrical appliances was reduced from 25 to 15 percent. A similar reduction was applied to other consumer products such as wine and spirits, while microcomputers were zero rated. At the upper range of the VAT system, the luxury rate of 55 percent on cigarettes and cigars was reduced to 15 percent.

(2) Domestic VAT

After the presentation of the 1994 budget, the Government attempted to introduce a change in the domestic VAT to reduce the rate on domestically produced manufactured goods from 15 to 10 percent. This was done through a Standing Rule and Order (SRO) in February 1994. However, the legislation necessary to give validity to the SRO was not passed until October. In the interim, some manufacturers lowered their rates while others refused to do so in the absence of the relevant legislation.

f. The foreign-exchange tax

This tax was abolished with effect from January 1, 1994.

g. Fees and licenses

A substantial amount of “nuisance licenses” were abolished, e.g., licenses for bicycles, carts, radios, dogs, etc., and licenses for the establishment and conducting of personal or corporate services were increased.

5. 1995

a. Personal income tax

Although the legislation was passed in late 1994, the new tax system become operational from January 1, 1995.

b. Corporation tax

The corporation tax was consolidated at 30 percent from January 1, 1995.

c. Property tax

The property tax rate was reduced to 0.15 percent and a new threshold of EC$100,000 was set.

d. General consumption tax

The former external and domestic value-added tax was renamed the general consumption tax (GCT) and the following changes were instituted;

(1) The rate on new imported cars was lowered from 55 to 50 percent.

(2) The rate on tires was reduced from 55 to 50 percent.

(3) The rate on cigarettes increased from 25 to 50 percent.

e. Licenses, fees, and charges

The annual license paid by hotels was changed to a sliding scale of fees based on the number of rooms per hotel. The costs of various annual licenses required by architects, auditors, engineers, and building contractors were also increased as were the charges for the storage of goods at the Government's bonded warehouse.

f. The Common External Tariff

The common External tariff was reduced in accordance with the agreed regional schedule The top rate was reduced by 5 percent in each of the four groups of imports to which the CET applies. The new tariff structure is the follows:

(1) Primary inputs 15 percent instead of 20 percent.

(2) Intermediate goods 20 percent down from 25 percent.

(3) Capital goods 15 percent instead of 20 percent.

(4) Final goods 30 percent instead of 35 percent.

6. 1996

a. Indirect taxes, fees, and licenses

The following changes became effective on January 19, 1996:

(1) Customs service charge

The customs service charge was doubled to 5 percent.

(2) Import duties

The existing rates of 25 percent for motor vehicles was reduced to 15 percent.

(3) General consumption tax

The following changes were made to the existing general consumption tax on domestic goods and services:

(a) Rental of telephones. The existing general consumption tax rate on services (5 percent) was applied to the rental of telephones for either personal or business purposes.

(b) Electricity bills. The 5 percent general consumption tax on services was applied to domestic and commercial electricity bills.

(4) Licenses, fees, and charges

New fees and licenses on yachts, which were supposed to have been introduced in 1995, were introduced in 1996. These include:

(a) A license fee of EC$250 per annum for locally registered yachts and US$250 for all other registered yachts.

(b) Visiting yachts will require a US$10 cruising permit.

(c) Commercially operated pleasure craft would be subject to an annual fee of EC$2,000.

b. Direct taxes

(1) Personal income tax

Effective April 1, 1996 the income tax threshold was raised from EC$10,000 to EC$60,000 and the former system of progressive rates reduced to a flat rate of 30 percent. Each taxpayer will continue to be treated independently and there will be no aggregation of the income of married persons. Individual income which will be assessed for the purpose of being subject to taxation includes employment, interest and rental income, dividends and allowances, and business profits of all forms of unincorporated businesses.

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