NIA CHARLESTOWN NEVIS – The Nevis Island Administration (NIA) has recorded a significant improvement in its fiscal performance for 2024, with increased revenue and a notable reduction in total expenditure.
The Honourable Mark Brantley, Premier of Nevis and Minister of Finance presented these achievements during the 2024 Budget Address delivered on December 3, 2024, in the Nevis Island Assembly.
“Our fiscal position as of October 31, 2024, has most certainly improved, and our revenue performance for the fiscal year 2024 thus far has been very favourable. Continuing to chart this course, we believe that we can achieve our revenue targets while remaining within our outlined expenditure parameters,” he noted.
For the period ending October 31, 2024, the NIA generated $127.58 million in recurrent revenue, an increase of 7.31 per cent compared to the same period in 2023. When combined with $60 million from development aid and Citizenship By Investment (CBI) revenue, the total revenue reached $187.59 million, representing a 4.42 per cent increase over 2023 figures.
Simultaneously, the total expenditure for the period decreased by $18.63 million or 8.46 per cent to $203.22 million, compared to $221.85 million in 2023. This prudent financial management has led to a significant improvement in the NIA’s overall fiscal balance, which moved from a deficit of $29.48 million at the end of October 2023 to just $3.11 million as of October 31, 2024.
“The excellent financial performance for the year thus far, despite the challenges encountered, has pushed the Administration into a stronger position than initially anticipated,” he said.
The main components of recurrent expenditure for the period under review were personal emoluments, which accounted for 46.86 per cent, and goods and services, which accounted for 21.65 per cent. Debt service payments consisting of both principal and interest repayments amounted to $28.93 million or 18.13 per cent of recurrent expenditure. The recurrent budgetary allocation for the period ending October 31, 2024, was projected at $165.15 million.
“It shows that the Administration has been prudently managing its expenditure and was able to effectively function within the outlined expenditure parameters for the period,” the Premier stated.
The Value Added Tax (VAT) has been a standout performer in 2024. Premier Brantley highlighted its pivotal role, stating, “VAT continues to be a significant source of revenue for the Administration. The level of VAT collections can also be used as a measure of the economic well-being of the island.”
VAT receipts totalled $34.81 million as of October 31, 2024, reflecting a 7.57 per cent increase over the $32.36 million collected during the same period in 2023. This growth was driven by increased collections from both domestic goods and services and international trade, which contributed $20.70 million- up 9.19 per cent- and $14.11 million- up 5.25 per cent, respectively.
Looking ahead, VAT collections for 2024 are expected to exceed the 2024 budgeted target of $42 million, surpassing the $38.37 million collected in 2023.
The Premier emphasised the broader implications of these achievements, noting, “This positive outcome shows that our economy continues to experience incremental growth. Despite challenges, the NIA’s fiscal management has positioned the island for a more stable and prosperous future.”
The NIA, however, continues to advocate for changes to the VAT legislation to ensure that VAT generated from activities on Nevis is paid locally, thereby providing a more accurate reflection of the island’s economic activity.
The achievements highlighted in the 2024 Budget Address underscore the NIA’s commitment to sound financial management and economic resilience. Premier Brantley said the Administration remains optimistic about sustaining this positive momentum in the years to come.