💰 UPM to raise certain taxes and fees in 2024/25 budget

Premier and Finance Minister Juliana O’Connor-Connolly announced in her Budget Address that the government will increase some taxes and fees over the 2024-25 budget period. These include a rise in duty on electric cars, stamp duty in high-end locations, work permit applications, and some General Registry fees. The increase in fees over two years is expected to generate an additional CI$132 million in revenue, which O’Connor-Connolly stated would not impact the lower-income population but would play a vital role in funding public services. 🏦

Alongside the fee increases, the government plans to borrow $150 million for capital projects. This, combined with unused proposed borrowing from this year, could add about $278 million to the government's existing debt over the next two-year budget cycle. Despite this, the government is expected to deliver a surplus of around CI$43 million in 2024 and CI$53.2 million in 2025. The budget also forecasts that the government will collect CI$1.09 billion in revenue in 2024 with expenditures of CI$1.05 billion, and in 2025, it predicts revenue of CI$1.3 billion, with spending expected to reach CI$1.08 billion. 💹

As part of the budget, the government will be spending hundreds of millions on various capital projects, including two new high schools, roads, airport redevelopment, a new prison, the Scranton Park, land acquisition, and affordable housing. Personnel costs for the government are expected to exceed half a billion dollars next year and CI$522 million in 2025, as it recruits more mental health staff, border control personnel, and regulators for the offshore sector, as well as funding increases in teachers’ pay. More details on the budget are expected to be released in the coming week. 🏗️