Minutes of 17 December 2021

THIS DOCUMENT IS THE PROPERTY

OF THE GOVERNMENT OF ANGUILLA

Copy No.

MINUTES OF EXECUTIVE COUNCIL DECISION AGREED BY ROUND ROBIN

The following was approved by Round Robin on Friday 17th December 2021: -

EX MIN 21/429 EX MEM 21/275 PROPOSED SUPPLEMENTARY BUDGET NO. 2 FOR 2021

Executive Council requested the Ministry of Finance to prepare a Supplementary Budget to reflect the changes needed because of various demands on the recurrent budget.

Therefore, the purpose of the Supplementary Budget is to facilitate expenditure adjustments, within the approved expenditure ceiling, to reflect additional expenditure needs related to Personal Emoluments. Hence, resources across government are to be reprioritised against current needs.

Table 1 below includes the 2021 Approved Budget, and the Proposed Supplementary Budget No.2 (PSB). The PSB is based on the reprioritizing exercise that took place across government departments. The process required Ministries and Departments to use their ten months actuals together with their projections for the latter two months of the year. The results of this exercise indicated the projected under/overspends for the departments budgets and this was used to help determine the PSB. The effects on the various Ministries are as follows:

Table 1

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		GOVERNMENT OF ANGUILLA
	2021 ESTIMATES OF RECURRENT EXPENDITURE AND CAPITAL
		SUMMARY OF APPROPRIATIONS
		SCHEDULE
		A	B	C	D	E	F	G	G
PROGRAM	MINISTRY	2021	2021	2021	2021	2021	2021	2022	2022
		APPROVED	REVISED	SUPPLEMENTARY	Expected	End of Year	SUPPLEMENTARY SUPPLEMENTARY SUPPLEMENTARY
		BUDGET	BUDGET	BUDGET	Shortfall/Savings	Projection	BUDGET	BUDGET w/ Arrears BUDGET (Adjusted)
			(Post Supp. #1 )	N0. 1	Difference		NO. 2	NO. 2	NO. 2
					(B-E)
	PART 1 - RECURRENT EXPENDITURE	$	$	$	$	$	$
001R	HE THE GOVERNOR	28,810,840	28,915,738	28,633,338	475,088	28,440,650	28,915,738	30,242,545	29,942,545
350R	MINISTRY OF HOME AFFAIRS, LABOUR, IMMIGRATION,
	INFORMATION AND BROADCASTING	8,963,220	8,516,772	8,316,772	322,775	8,193,997	8,516,772	8,762,899	8,662,899
450R	MINISTRY OF FINANCE AND HEALTH	108,092,690	109,709,929	105,922,373	10,999,436	98,710,493	109,709,929	105,535,362	104,793,588
550R	MINISTRY OF SOCIAL DEVELOPMENT	51,615,945	46,673,706	46,675,211	398,496	46,275,210	46,673,706	47,609,334	47,309,334
650R	MINISTRY OF INFRASTRUCTURE, COMMUNICATIONS
	UTILITIES, HOUSING AND NATURAL RESOURCES	20,518,395	21,527,732	21,527,732	(0)	21,527,732	21,527,732	23,027,814	23,027,814
750R	MINISTRY OF ECONOMIC DEVELOPMENT	8,710,117	10,197,466	10,195,961	1,505	10,195,961	10,197,466	10,363,389	10,363,389
	TOTAL RECURRENT EXPENDITURE	226,711,207	225,541,343	221,271,387	12,197,300	213,344,043	225,541,343	225,541,343	224,099,569
Notes:
HE, The Governor: Savings mainly in Training $475,088. Overall shortfall in Depts. PE and Goods & Services.
Ministry of Home Affairs: Savings in Consultancy and Rental of Assets $322,775
Ministry of Finance: Savings mainly in Claims Against Gov't and Restricted Expenditure $10,999,436
Ministry of Social Development: Savings in mainly Public Assistance, however, in PE there is a shortfall due to under expenditure reported in Education Supplementary #1 $398,496
Ministry of Infrastructure: Net effect of savings and shortfall
Ministry of Economic Development: Net effect resulting in a minute savings of $1,505
To facilitate the additional expenditure in the Capital Budget as follows:
HE, The Governor: Savings reduced by $300,000.
Ministry of Home Affairs: Savings reduced by $100,000
Ministry of Finance: Savings reduced by $741,774
Ministry of Social Development: Savings reduced by $300,000

HE, The Governor

The overall savings of $475,088 in this portfolio is mainly due to reduced spending in the training account.

Ministry of Home Affairs

The overall savings of $322.775 in this portfolio is as a result of both shortfalls and savings in this ministry's and departments budgets.

Ministry of Finance and Health

The projected underspend of $10,999,436 in this portfolio is primarily due to savings in the Restricted Expenditure account, also savings in Treasury Department Claims Against Government account.

Ministry of Social Development

The overall shortfall of $398,496 is mainly as a result of an unreported expenditure in Supplementary #1 for the Education Department Personal Emoluments account.

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Ministry of Infrastructure

There is a net effect resulting in zero, this is due mainly to expenditure relating to Maintenance services and Roads and savings under Departments.

Ministry of Economic Development

The projected under expenditure of $1,505 is due primarily to savings in personal emoluments and maintenance services.

The details of each ministry's end of year projections can be seen in Appendix 1.

SUPPLEMENTARY BUDGET - CAPITAL BUDGET 2021

The approved Capital Budget for 2021 is EC$2,872,000. As at the end of November 2021, capital expenditure totaled EC$2,424,729, approximately 85% of the total approved budget.

The capital budget supplementary highlights two changes:

1. It reflects the actual expenditure on construction of the Anguilla Community College as financed by the Caribbean Development Bank. This is to allow consistency with the treatment of such in previous years' expenditure.
2. The reallocation of the unspent balances from various project accounts to miscellaneous projects to facilitate the completion of year-end projects and fulfil counterpart commitments.

Also to note that the funds approved under the previous capital supplementary to purchase baggage scanners for the ports were used to fund the retrofit of the Clayton J Lloyd International Airport. The UK Government purchased the scanners and the retrofit was necessary to accommodate the increased airlift from American Airlines.

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	2021 CAPITAL BUDGET SUPPLEMENTARY BREAKDOWN
			2021 REVISED	2021 REVISED	FINAL REVISION
Account		2021 ORIGINAL	BUDGET	BUDGET	TO
MINISTRY/ PROJECTS	BUDGET	ESTIMATE -	ESTIMATE -	SUPPLEMENTARY
Number	ESTIMATE	Supplementary 1	Supplementary 2	2

10 100 PUBLIC ADMINISTRATION

	MINISTRY OF HOME AFFAIRS, LABOUR, IMMIGRATION,
35 350	INFORMATION AND BROADCASTING, LANDS AND
	PHYSICAL PLANNING
09131	Land Information System	317,000	317,000	317,000	317,000
05191	Land Acquisition	690,000	690,000	132,000	132,000
	SUB-TOTAL	1,007,000	1,007,000	449,000	449,000
45 450	MINISTRY OF FINANCE & HEALTH
03166	Health Services Development	26,000	26,000	26,000	26000
	SUB-TOTAL	26,000	26,000	26,000	26,000
55 550	MINISTRY OF SOCIAL DEVELOPMENT & EDUCATION
01108	Minor Education Development Projects	280,000	280,000	280,000	280,000
11159	Anguilla Community College		2,952,770	-	723,442
07109	Sports Development	20,000	20,000	20,000	16,503
	SUB-TOTAL	300,000	3,252,770	300,000	1,019,945
65 650	MINISTRY OF INFRASTRUCTURE, COMMUNICATIONS,
	UTILITIES, HOUSING & TOURISM
01127	Road Development	18,000	203,000	203,000	203,000
11162	Disaster Mitigation and Recovery	60,000	60,000	60,000	54,163
08120	Tourism Sector Development	65,000	65,000	65,000	-
11163	Renewable Energy and Energy Efficiency	35,000	35,000	35,000	29,000
02154	Renovation of Government Assets	200,000	625,800	625,800	690,800
01123	Replacement of Government Vehicles	745,000	875,000	875,000	725,344
	SUB-TOTAL	1,123,000	1,863,800	1,863,800	1,702,307
	MINISTRY OF ECONOMIC DEVELOPMENT, INVESTMENT,
75 750	COMMERCE, IT & NATURAL RESOURCES
01112	Furniture and Equipment	85,000	770,400	770,400	233,830
01119	Miscellaneous Projects	200,000	114,410	114,410	968,410
	Anguilla National Trust Building acquisition - UKG funded		537,640	537,640	537,640
08127	Information System Development	30,000	83,600	83,600	54,060
06195	IT Equipment	41,000	41,000	41,000
	IT Infrastructure - UKG funded		297,144	297,144	297,145
04174	IT Infrastructure	60,000	318,056	318,056	195,300
	SUB-TOTAL	416,000	2,162,250	2,162,250	2,286,385
	TOTAL	2,872,000		8,311,820	4,801,050	5,483,637

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Management of Government Expenditure Arrears

Prudent public financial management requires Government to avoid accumulating expenditure arrears. The accumulation of arrears can have negative impacts on the economy. Furthermore, arrears- related benchmarks have been included as a condition (indicative Prior Action) of the CDB Policy Based Loan. The list of Government Expenditure Arrears is included in Appendix 4. Further work is required to strengthen financial controls to improve the government's capacity to verify, report, and clear existing arrears, and to enhance expenditure controls to avoid the accumulation of new arrears.

It is proposed to utilize a portion of the expenditure savings to clear specified outstanding obligations, which have been identified based on potential impact to the domestic economy:

Civil Servants/Deferred salaries	$ 2,344,447.95 (half payment)
Public Service Pension Fund	$ 2,766,844.41
ECSC Contribution - 2021	$ 1,069,369.92
Water Corporation/AASPA	$ 4,000,000.00
Total	$10,180,662.28

It is being proposed to advance Water Corporation and AASPA EC$4,000,000.00 to assist with payments to ANGLEC for arrears. In the event that this is not accepted, the amount will be retained in Restricted Expenditure to make any necessary adjustments.

Water Corporation	EC$2,203,358.90
AASPA	EC$1,796,641.10

Council approved:

1. the Portfolio allocations as identified in Table 1 column F;
2. that the Attorney General's Chambers work with the Ministry of Finance to draft a Bill for Supplementary Appropriation for submission to the House of Assembly at its next sitting; and
3. the payment of the following outstanding obligations:

Civil Servants/Deferred salaries	$ 2,344,447.95 (half payment)
Public Service Pension Fund	$ 2,766,844.41
ECSC Contribution - 2021	$ 1,069,369.92
Water Corporation/AASPA	$ 4,000,000.00