Finance Minister Fayval Williams
Finance Minister Fayval Williams says the government has been forced to revise its fiscal targets for the year as the economy reels from the impact of Hurricane Melissa.
She announced that the fiscal balance - originally projected to be at zero - essentially, a balanced budget, has now been revised to a deficit of 3.5% of GDP.
Minister Williams also confirmed that the growth outlook has been downgraded sharply, moving from the previously expected 2.2% expansion to a contraction of 4.3%.
In addition, the fiscal rules will be temporarily relaxed for one year to allow a lower primary surplus. The surplus, which represents the funds set aside to service the national debt, had been targeted at 5.2% of GDP - about $180 billion.
Ms. Williams says reducing that target will give the government the fiscal space needed to support national recovery and reconstruction efforts.
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